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What exactly is the problem? The description just states that passwords are stored in plain text. But where? And how can a security breach actually be resolved when an unauthorized person as access to the location where those passwords are stored?
Whilst I don't oppose at all to storing some hash of the password, instead of the real thing, I don't think this solves the real issue. Also, in general, all "credentials" related to a User in UserAdmin should potentially be encrypted.