How to enable CAPTCHA for user creation in Magento 1.x

We recommend enabling CAPTCHA for user creation and password retrieval to help prevent malicious attempts that can generate spam. 

If your store is already receiving high numbers of bounce-back emails or has been blacklisted by mail servers, enabling CAPTCHA will help prevent future occurrences.

 Read How to Improve the Security of Your Magento Store.

Method

1. From the Admin Panel, select System > Configuration.
   
   
2. Select CUSTOMERS > Customer Configuration.
   
3. Click CAPTCHA.
   
4. From the Enable CAPTCHA on Frontend drop-down menu, click Yes.
5. In the Forms field, use Ctrl-Click or Cmd-Click to select Create user and Forget password.
   
6. In the Number of Unsuccessful Attempts to Login field, enter "0".
   
   
7. Leave all other default settings and click Save Config.

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