derGoldstein writes: A new issue page was added to the Android project site: "Issue 10809: Password is stored on disk in plain text". The issue details: "The password for email accounts is stored into the SQLite DB which in turn stores it on the phone's file system in plain text". Andy Stadler replied in a comment: "rest assured, I am not closing this bug. We recognize that this is causing concern for some users, and we're going to look at identifying steps that can make your data more secure."
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