Question: are pop usernames and passwords displayed in clear text by default

Answer: Yes, FTP does not encrypt its traffic; all transmissions are in clear text, and usernames, passwords, commands and data can be read by anyone able to perform packet capture (sniffing) on the network. This problem is common to many of the Internet Protocol specifications (such as SMTP, Telnet, POP and IMAP) that were designed prior to the creation of encryption mechanisms such as TLS or SSL.