diff --git a/lib/brakeman/checks/check_basic_auth.rb b/lib/brakeman/checks/check_basic_auth.rb
index 2e674c4cf68a35a22f0cdb6388f184a006718f99..3c3f7574519bd13b3e222c6ef24659f1649dac27 100644
--- a/lib/brakeman/checks/check_basic_auth.rb
+++ b/lib/brakeman/checks/check_basic_auth.rb
@@ -12,6 +12,11 @@ class Brakeman::CheckBasicAuth < Brakeman::BaseCheck
   def run_check
     return if version_between? "0.0.0", "3.0.99"
 
+    check_basic_auth_filter
+    check_basic_auth_request
+  end
+
+  def check_basic_auth_filter
     controllers = tracker.controllers.select do |name, c|
       c[:options][:http_basic_authenticate_with]
     end
@@ -21,10 +26,10 @@ class Brakeman::CheckBasicAuth < Brakeman::BaseCheck
 
         if pass = get_password(call) and string? pass
           warn :controller => name,
-              :warning_type => "Basic Auth", 
+              :warning_type => "Basic Auth",
               :warning_code => :basic_auth_password,
               :message => "Basic authentication password stored in source code",
-              :code => call, 
+              :code => call,
               :confidence => 0,
               :file => controller[:file]
 
@@ -34,6 +39,46 @@ class Brakeman::CheckBasicAuth < Brakeman::BaseCheck
     end
   end
 
+  # Look for
+  #  authenticate_or_request_with_http_basic do |username, password|
+  #    username == "foo" && password == "bar"
+  #  end
+  def check_basic_auth_request
+    tracker.find_call(:target => nil, :method => :authenticate_or_request_with_http_basic).each do |result|
+      if include_password_literal? result
+          warn :result => result,
+              :code => @include_password,
+              :warning_type => "Basic Auth",
+              :warning_code => :basic_auth_password,
+              :message => "Basic authentication password stored in source code",
+              :confidence => 0
+      end
+    end
+  end
+
+  # Check if the block of a result contains a comparison of password to string
+  def include_password_literal? result
+    @password_var = result[:block_args].last
+    @include_password = false
+    process result[:block]
+    @include_password
+  end
+
+  # Looks for :== calls on password var
+  def process_call exp
+    target = exp.target
+
+    if node_type?(target, :lvar) and
+      target.value == @password_var and
+      exp.method == :== and
+      string? exp.first_arg
+
+      @include_password = exp
+    end
+
+    exp
+  end
+
   def get_password call
     arg = call.first_arg
 
diff --git a/test/apps/rails3.1/app/controllers/admin_controller.rb b/test/apps/rails3.1/app/controllers/admin_controller.rb
index 80b8494fbcce152c2c121e41e1e6428c4e3debf1..fbbb252c0201e6edcb631a81b265ceec9dd4f7e4 100644
--- a/test/apps/rails3.1/app/controllers/admin_controller.rb
+++ b/test/apps/rails3.1/app/controllers/admin_controller.rb
@@ -17,4 +17,12 @@ class AdminController < ApplicationController
 
     some_method(params[:class]).constantize
   end
+
+  def authenticate_user!
+    correct_password = "7001337"
+
+    authenticate_or_request_with_http_basic do |username, password|
+      username == "foo" && password == correct_password
+    end
+  end
 end
diff --git a/test/tests/rails31.rb b/test/tests/rails31.rb
index f176c795b327b42b49588f7840d9125385210fb9..ccedc973527253cdffbd81d48b5d0ea097c80fad 100644
--- a/test/tests/rails31.rb
+++ b/test/tests/rails31.rb
@@ -15,7 +15,7 @@ class Rails31Tests < Test::Unit::TestCase
       :model => 3,
       :template => 22,
       :controller => 4,
-      :warning => 71 }
+      :warning => 72 }
   end
 
   def test_without_protection
@@ -117,6 +117,17 @@ class Rails31Tests < Test::Unit::TestCase
       :file => /users_controller\.rb/
   end
 
+  def test_basic_auth_in_method_with_password
+    assert_warning :type => :warning,
+      :warning_code => 9,
+      :fingerprint => "f2698a4ca148f43a8f77901a57371b6253f450d50ad388de588f32b7dbeb8937",
+      :warning_type => "Basic Auth",
+      :line => 25,
+      :message => /^Basic\ authentication\ password\ stored\ in\ /,
+      :confidence => 0,
+      :relative_path => "app/controllers/admin_controller.rb"
+  end
+
   def test_translate_bug
     assert_warning :type => :warning,
       :warning_type => "Cross Site Scripting",