Could not connect to database… old insecure authentication

Error:

Could not connect to database. SQLSTATE[HY000] [2000] mysqlnd cannot connect to MySQL 4.1+ using the old insecure authentication. Please use an administration tool to reset your password with the command SET PASSWORD = PASSWORD(‘your_existing_password’). This will store a new, and more secure, hash value in mysql.user. If this user is used in other scripts executed by PHP 5.2 or earlier you might need to remove the old-passwords flag from your my.cnf file

Solution:

run the following SQL to update the password

SET SESSION old_passwords = 0;
SET PASSWORD = PASSWORD('replace_with_correct_password');

Example using Sequel Pro