Tested myself, can confirm this one. This is bad especially because of
this: http://blog.wired.com/27bstroke6/2008/02/researchers-dis.html and
because of that storing the passphrase itself is not required for the
encryption to work.. Better approach would be to store just (salted)
hash (which is used for the md encryption module anyways). It makes at
least finding the real key harder.

** Changed in: ubuntu
       Status: New => Confirmed

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Encrypted LUKS disks store passphrase plaintext in memory
https://bugs.launchpad.net/bugs/196368
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