There are always pros and cons when it comes to rooting your Android devices. Among the major pros are being able to make your Android device much more flexible and slap on things like custom ROMs. On the flip side there are cons such as the potential of major security breaches, such as one that was recently found by XDA user graffixnyc. While going through his S-Memo SQLite files on his Galaxy S III, he found out S-Memo store his Google account password in plain text, instead of the password being encrypted. After posting his issue in an open forum thread, another XDA user named ViViDboarder highlighted rooted devices will be able to view internal contents like that of the SQLite files, though graffixnyc the records of the SQLite files should be encrypted, whether a device is rooted or not.
While this is incredibly troubling to hear, this is a good wake up call for all Android owners, especially owners of rooted devices to take extreme caution in ensuring their sensitive information is safe and secure. The last thing you want is your important information getting into the wrong hands and all.
source: XDA Forums