Apple Security Blunder Exposes Lion Login Passwords In Clear Text

An anonymous reader writes "An Apple programmer, apparently by accident, left a debug flag open in the most recent version of its Mac OS X operating system. In specific configurations, applying the OS X Lion update 10.7.3 turns on a system-wide debug log file that contains the login passwords of every user who has logged in since the update was applied. The passwords are stored in clear text."