I use openId to login to HN. So when I submit my Google openID, in principle, HN can redirect me to a fake Google site where I may unknowingly type in my password. The big loophole is that I have no control over which site I am redirected to by HN.
However if I were to log into google first and then visit the HN login page that problem disappears. If all goes well HN redirects me to Google which remembers that I am already authenticated and directs me back to HN. OTOH if HN sends me to a malicious site it will ask for my password and give itself away as a malicious site.
I am no security expert, and corner cases of vulnerability surely exists. But some simple guidelines can mitigate the risks quite a bit.
One point raised in the article is that
By comparison, OpenID assumes the User and a Third Party
is more trustworthy than the Customer. I personally find
this bizarre since it's saying that someone is going to
log into a potentially dangerous site, and simply using
OpenID makes that alright.
I wont go on to claim OpenID makes everything alright. But I like the feature that I as a user get to choose who I trust with my password, 2nd party, third party or some N^{th} party. So it does not seem that "bizarre" to me.