- Meebo to Piskvor: Give me your password for IM, I will sign up for you.
- Piskvor to Meebo: This is "12345".
- Meebo for IM: Hi, I'm Piskvor; to prove this, my password is "12345"
- IM for Meebo: Hi, you really are Piskvor; there is also a message for you from the user "average".
- Meebo to Piskvor: There you get a message from the user "average".
- (etc.)
Pay attention to lines 2 and 3. To make No. 3, Meebo needs your password; (if there is no collaboration between the IM provider and Meebo (which is possible, but unlikely)), at some point between these lines your plaintext password is.
Congratulations, you no longer have full control over your IM account; as for IM service, Meebo .
In other words: do you trust Meebo not to abuse your password? Do you trust Meebo to protect your password? Do you believe that Meebo will not be hacked and your password is stolen? As far as I can see, there is no way to say (unless you are Meebo, and you are not).
It boils down to this: trust Meebo promises?
Here are my $ 0.02: Convenient? Check it out. Awfully insecure? Check it out.
Oh, and to answer the question in the title: the best practice is to "encrypt the password, do not leave open text anywhere (longer than absolutely necessary)." However, I have seen too many databases with clear text fields; some companies seem to believe that encryption is a waste of work, while something is really wrong. Miebo? I can not tell.
Piskvor
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