Skype might have been caught off guard by the news that their Android app was subject to a data stealing exploit, but the company has made an announcement to calm our nerves. Skype has acknowledged the issue, and is working on a fix. In the meantime, they suggest users be cautious about what apps they install.
The Skype app for Android stores user profile data on the SD card in a standard folder. None of the sqlite3 databases are encrypted, so it is a relatively simple process to extract the data. The information that is accessible to this hack includes contacts, IM logs, and profile data.
Clearly this was a serious failure from Skype, but at least the dedicated Android community noticed it before it was being exploited by the bad guys. Does this issue concern the Skype users out there?