User Activity Monitor : Monitoring Settings : Options : Log passwords
  
Log passwords
The Log passwords option allows the administrator to secure user-entered passwords when recording keystrokes by replacing them with asterisks (*).
Enable this option if it is acceptable to record passwords. As a result, passwords are recorded in plain text, which is then displayed and highlighted in red when viewing the recording. Disable this option to avoid recording passwords. When this option is disabled, the keystroke recording viewer displays asterisks in place of passwords. The record in this case does not contain any password information, and one cannot view or recover passwords from such a record.
 
Important: The Log passwords option has no effect when entering passwords in web forms. The passwords entered in web forms are recorded and displayed in clear text regardless of the option setting.