Lexar JumpDrive Password Scheme Cracked

Saint Aardvark writes "Lexar describes the JumpDrive Secure as "loaded with software that lets you password-protect your data. If lost or stolen, you can rest assured that what you've saved there remains there with 256-bit AES encryption." @stake has a different take: The password can be observed in memory or read directly from the device, without evidence of tampering." And best of all, the punch line: "[The password] is stored in an XOR encrypted form and can be read directly from the device without any authentication." That's why I use ROT-13 for my encryption needs."