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On that topic, there's a new research paper that puts some figures to how successful the technique is. The paper goes by the title "It's no secret" and quantifies the reliability of 'secret' questions as a back-door to authentication systems.
I'd recommend a read of the new paper when you get a chance - and probably combine it with some of the following reading as well...
Passwords Revisited
Challenging Challenge Questions
Choosing Better Challenge Questions
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