The remote Mac OS X host logs passwords in plaintext.
Plaintext passwords were discovered in a system log file. Mac OS X Lion release 10.7.3 enabled a debug logging feature that causes plaintext passwords to be logged to /var/log/secure.log on systems that use certain FileVault configurations. A local attacker in the admin group or an attacker with physical access to the host could exploit this to get user passwords, which could be used to gain access to encrypted partitions.
Upgrade to Mac OS X 10.7.4 or later and securely remove log files that contain plaintext passwords (refer to article TS4272).