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In this tutorial, Sam from Transcription City explains how to password protect a Word document on a Mac. He demonstrates the process using a document about new translation services that contains confidential information. To secure the document, users should click on "Word," select "Preferences," and then access "Personal Settings" to find "Security." There, they can set a password to open the document and also choose to require a password for modifications if desired. This ensures that sensitive legal documents or transcripts remain protected from unauthorized access or changes.