We are using the Open AM Restful API to perform authentication. Our restful call has the following format:
http://OpenAM_Host:Port/deploy_uri/identity/authenticate?username=scott&password=tiger
How can we send the password in an encrypted/encoded format?
This is not possible currently out of the box, you need to implement an own DataStore (if you use the DataStore auth module) or an authentication module which will use symmetric decryption on the supplied password.