derGoldstein (1494129) 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."" Link to Original Source
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