OK, since the discussion is heating up, I'll refrain from any hints.
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After stopping the system, the successful Hacker finds in the Evil Mastermind's abandoned lair an alphabetical list with some of the next passwords. As he tries to unravel the mystery of the algorithm, he shares the list with the community:
ALABAMA - A0A4L2A5
ALASKA - A0K3L1S3
ARIZONA - I0A4R2I5
ARKANSAS - K1A3A3K4
CALIFORNIA - L1R5C0I5
DELAWARE - L0R4E3A4
FLORIDA - O1A3F2O4
GEORGIA - O1A4G2O5
ILLINOIS - L1I4I3L5
KANSAS - N1A2K1N3
KENTUCKY - N0K2E3T2
MASSACHUSETTS - S0S4A3S4
MICHIGAN - C1A3M3C4
MINNESOTA - N0O4I4N4
MISSISSIPPI - S0I4I1S5
MISSOURI - S0R4I3S4
MONTANA - N0A3O2N4
NEWHAMPSHIRE - W0R4E2H4
NEWJERSEY - W1S3N4J3
NEWMEXICO - W1I4N4W5
Some states are still missing, but maybe the critical mass of information has been reached?