diff --git a/.eslintrc.js b/.eslintrc.js
index 9b7b45657..cf86c5980 100644
--- a/.eslintrc.js
+++ b/.eslintrc.js
@@ -1,6 +1,6 @@
 module.exports = {
   parser: '@typescript-eslint/parser',
-  plugins: ['lodash'],
+  plugins: ['lodash', 'local-rules'],
   extends: [
     '@atixlabs/eslint-config/configurations/react',
     'plugin:@typescript-eslint/recommended',
@@ -33,7 +33,9 @@ module.exports = {
     '@typescript-eslint/no-explicit-any': ['error'],
     'no-console': ['error', { allow: ['warn', 'error', 'info', 'debug'] }],
     'lodash/import-scope': ['error', 'method'],
-    'promise/avoid-new': 'off'
+    'promise/avoid-new': 'off',
+    // detect + prevent usage of sensitive props from useSecrets being memoized
+    'local-rules/prevent-memoization-of-sensitive-values': 'error'
   },
   overrides: [
     {
diff --git a/eslint-local-rules/index.js b/eslint-local-rules/index.js
new file mode 100644
index 000000000..5ee26cc56
--- /dev/null
+++ b/eslint-local-rules/index.js
@@ -0,0 +1,3 @@
+module.exports = {
+  'prevent-memoization-of-sensitive-values': require('./prevent-memoization-of-sensitive-values')
+};
diff --git a/eslint-local-rules/prevent-memoization-of-sensitive-values.js b/eslint-local-rules/prevent-memoization-of-sensitive-values.js
new file mode 100644
index 000000000..1c4e534b5
--- /dev/null
+++ b/eslint-local-rules/prevent-memoization-of-sensitive-values.js
@@ -0,0 +1,61 @@
+module.exports = {
+  meta: {
+    type: 'problem',
+    docs: {
+      description: 'Disallow sensitive values from useSecrets in useCallback or useMemo dependencies',
+      recommended: false
+    },
+    messages: {
+      disallowedDependency: "Avoid using '{{value}}' from useSecrets in {{type}} dependencies."
+    },
+    schema: [] // No options needed for this rule
+  },
+
+  create(context) {
+    const sensitiveProperties = ['password', 'passwordConfirmation', 'passwordRepeat'];
+
+    let declaredSecrets = new Set();
+
+    return {
+      VariableDeclarator(node) {
+        // Detect `const { password, passwordConfirmation } = useSecrets();`
+        if (
+          node.init &&
+          node.init.type === 'CallExpression' &&
+          node.init.callee.name === 'useSecrets' &&
+          node.id.type === 'ObjectPattern'
+        ) {
+          node.id.properties.forEach((property) => {
+            if (property.type === 'Property' && sensitiveProperties.includes(property.key.name)) {
+              declaredSecrets.add(property.key.name);
+            }
+          });
+        }
+      },
+
+      CallExpression(node) {
+        // Detect calls to `useCallback` or `useMemo`
+        if (node.callee.name === 'useCallback' || node.callee.name === 'useMemo') {
+          const dependencies = node.arguments[1];
+
+          if (dependencies && dependencies.type === 'ArrayExpression') {
+            dependencies.elements.forEach((element) => {
+              if (element && element.type === 'Identifier' && declaredSecrets.has(element.name)) {
+                context.report({
+                  node: element,
+                  messageId: 'disallowedDependency',
+                  data: { value: element.name, type: node.callee.name }
+                });
+              }
+            });
+          }
+        }
+      },
+
+      'Program:exit'() {
+        // Clean up the declaredSecrets set at the end of the program
+        declaredSecrets.clear();
+      }
+    };
+  }
+};
diff --git a/package.json b/package.json
index 062dad8fc..c7e966d03 100644
--- a/package.json
+++ b/package.json
@@ -143,6 +143,7 @@
     "eslint-plugin-filenames": "^1.3.2",
     "eslint-plugin-import": "^2.23.4",
     "eslint-plugin-jest": "^24.4.0",
+    "eslint-plugin-local-rules": "^3.0.2",
     "eslint-plugin-lodash": "^7.4.0",
     "eslint-plugin-prettier": "^4.0.0",
     "eslint-plugin-promise": "^5.1.0",
diff --git a/packages/e2e-tests/src/features/WalletAccountsExtended.feature b/packages/e2e-tests/src/features/WalletAccountsExtended.feature
index c01b4c3e5..9e8c19a42 100644
--- a/packages/e2e-tests/src/features/WalletAccountsExtended.feature
+++ b/packages/e2e-tests/src/features/WalletAccountsExtended.feature
@@ -63,6 +63,7 @@ Feature: Wallet accounts
     And I click "Confirm" button on the account unlock drawer
     Then I see "Account #3 activated" toast
     And I wait for main loader to disappear
+    And valid password is not in snapshot
     And I do not see account unlock drawer with all elements in extended mode
     When I click "Receive" button on page header
     Then I see "Wallet Address" page in extended mode for account: 3 and wallet "MultiAccActive1"
diff --git a/packages/e2e-tests/src/steps/commonSteps.ts b/packages/e2e-tests/src/steps/commonSteps.ts
index 3f82f960f..a4a994f11 100755
--- a/packages/e2e-tests/src/steps/commonSteps.ts
+++ b/packages/e2e-tests/src/steps/commonSteps.ts
@@ -51,6 +51,7 @@ import {
 import MainLoader from '../elements/MainLoader';
 import Modal from '../elements/modal';
 import { setCameraAccessPermission } from '../utils/browserPermissionsUtils';
+import { findNeedleInJSONKeyOrValue } from '../utils/textUtils';
 
 Given(/^Lace is ready for test$/, async () => {
   await MainLoader.waitUntilLoaderDisappears();
@@ -431,3 +432,27 @@ When(
     await browser.refresh();
   }
 );
+
+Then(
+  /(invalid|valid|N_8J@bne87A) password is not in snapshot/,
+  async (password: 'invalid' | 'valid' | 'N_8J@bne87A') => {
+    await browser.cdp('HeapProfiler', 'collectGarbage');
+    const snapshot = await browser.takeHeapSnapshot();
+
+    let needle = '';
+    switch (password) {
+      case 'valid':
+        needle = String(getTestWallet(TestWalletName.MultiAccActive1).password);
+        break;
+      case 'invalid':
+        needle = 'somePassword';
+        break;
+      case 'N_8J@bne87A':
+        needle = 'N_8J@bne87A';
+        break;
+    }
+    const needlesFound = findNeedleInJSONKeyOrValue(snapshot, needle);
+
+    expect(needlesFound.length).toEqual(0);
+  }
+);
diff --git a/packages/e2e-tests/src/utils/textUtils.ts b/packages/e2e-tests/src/utils/textUtils.ts
index 61666c12a..0c1a942a8 100644
--- a/packages/e2e-tests/src/utils/textUtils.ts
+++ b/packages/e2e-tests/src/utils/textUtils.ts
@@ -7,3 +7,55 @@ export const generateRandomString = async (length: number): Promise<string> =>
     .randomBytes(Math.ceil(length / 2))
     .toString('hex')
     .slice(0, length);
+
+export type JSONValue = string | number | boolean | null | undefined | JSONValue[] | { [key: string]: JSONValue };
+
+interface Match {
+  path: string; // Path to the matched key or value
+  key?: string; // The key where the match occurred
+  value?: JSONValue; // The value where the match occurred
+}
+
+/**
+ * Recursively searches for a specific needle in the keys or values of a JSON structure.
+ * @param data - The JSON structure to search.
+ * @param searchString - The string to search for.
+ * @param currentPath - (Internal) The current path in the structure during recursion.
+ * @returns An array of matches, including the path and matched key/value.
+ */
+export const findNeedleInJSONKeyOrValue = (
+  data: JSONValue,
+  searchString: string,
+  currentPath: string[] = []
+): Match[] => {
+  const matches: Match[] = [];
+
+  const traverse = (value: JSONValue, path: string[]) => {
+    if (value && typeof value === 'object') {
+      if (Array.isArray(value)) {
+        // Handle arrays
+        value.forEach((item, index) => {
+          traverse(item, [...path, index.toString()]);
+        });
+      } else {
+        // Handle objects
+        Object.entries(value).forEach(([key, val]) => {
+          const keyLower = key.toLowerCase();
+          if (keyLower.includes(searchString)) {
+            matches.push({ path: [...path, key].join('.'), key });
+          }
+          if (typeof val === 'string' && val.toLowerCase().includes(searchString)) {
+            matches.push({
+              path: [...path, key].join('.'),
+              value: val
+            });
+          }
+          traverse(val, [...path, key]);
+        });
+      }
+    }
+  };
+
+  traverse(data, currentPath);
+  return matches;
+};
diff --git a/yarn.lock b/yarn.lock
index f83ee8034..79673882a 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -35984,6 +35984,13 @@ __metadata:
   languageName: node
   linkType: hard
 
+"eslint-plugin-local-rules@npm:^3.0.2":
+  version: 3.0.2
+  resolution: "eslint-plugin-local-rules@npm:3.0.2"
+  checksum: ad883be0739f022bcd0f49de45354c792bc2ef23ea0030789c3f90b10288b4346ab509fbfd451e87282c0f92393251e51a5a69a2f3ba3865a1a1f780cebef7cb
+  languageName: node
+  linkType: hard
+
 "eslint-plugin-lodash@npm:^7.4.0":
   version: 7.4.0
   resolution: "eslint-plugin-lodash@npm:7.4.0"
@@ -43927,6 +43934,7 @@ __metadata:
     eslint-plugin-filenames: ^1.3.2
     eslint-plugin-import: ^2.23.4
     eslint-plugin-jest: ^24.4.0
+    eslint-plugin-local-rules: ^3.0.2
     eslint-plugin-lodash: ^7.4.0
     eslint-plugin-prettier: ^4.0.0
     eslint-plugin-promise: ^5.1.0