Comment #3 on issue 22241 by [email protected]: Passwords saved plaintext  
and world-readable
http://code.google.com/p/chromium/issues/detail?id=22241

The directory containing the passwords should be og-x, so the passwords  
shouldn't be
world-readable.  Can you verify that?

Picking a random coworker's home directory:
% cat ~estade/.config/google-chrome/Default/Web\ Data
cat: /home/estade/.config/google-chrome/Default/Web Data: Permission denied

As for encryption, there's little we can do other than obfuscation.  We  
have some
patches to integrate into system password stores but I don't know what the  
status of
those are.

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