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Third-party app InstaAgent was found to be storing users' Instagram usernames and passwords in an unencrypted form, before sending them on to unknown servers by iOS developer David L-R, who posted his discovery on Twitter late last night.
Google responded quickly to the revelation, removing the app from its Play Store, but Apple took a little longer to kill any mention of InstaAgent from the App Store, finally removing it a few hours after the first tweets indicated its malicious intentions. Apple and Google Remove App That Was Stealing Usernames and Passwords [theverge.com]