With 11g R1 Oracle introduced case sensitive passwords for database accounts based on the SHA1 hash algorithm. This feature can easily be enabled with the init.ora parameter SEC_CASE_SENSITIVE_LOGON. As soon as this parameter is set to true, all new passwords will be case sensitive. Existing passwords will remain case insensitive until they are changed.
The downside of this new feature is, that the passwords are also stored with the pre-11g database password hash. This is a potential security leak. The pre-11g password hash string from USER$ can be used to crack the case insensitive version of the password. All kind of tools, utilities, password lists etc are available to do this. As soon as the case insensitive version of the password is known, the case sensitive password can be guessed.
To get rid of this security leak, the pre-11g database password hashes have to be cleared. This blog post shows how this can be done.