I am creating an application which connects to the server using username/password and I would like to enable the option \"Save password\" so the user wouldn\'t have to type
Okay; it's been a while since the answer is kind-of mixed, but here's a few common answers. I researched this like crazy and it was hard to build a good answer
The MODE_PRIVATE method is considered generally safe, if you assume that the user didn't root the device. Your data is stored in plain text in a part of the file system that can only be accessed by the original program. This makings grabbing the password with another app on a rooted device easy. Then again, do you want to support rooted devices?
AES is still the best encryption you can do. Remember to look this up if you are starting a new implementation if it's been a while since I posted this. The largest issue with this is "What to do with the encryption key?"
So, now we are at the "What to do with the key?" portion. This is the hard part. Getting the key turns out to be not that bad. You can use a key derivation function to take some password and make it a pretty secure key. You do get into issues like "how many passes do you do with PKFDF2?", but that's another topic
Ideally, you store the AES key off the device. You have to figure out a good way to retrieve the key from the server safely, reliably, and securely though
You have a login sequence of some sort (even the original login sequence you do for remote access). You can do two runs of your key generator on the same password. How this works is that you derive the key twice with a new salt and a new secure initialization vector. You store one of those generated passwords on the device, and you use the second password as the AES key.
When you log in, you re-derive the key on the local login and compare it to the stored key. Once that is done, you use derive key #2 for AES.
You can do a lot of variations of these. For example, instead of a full login sequence, you can do a quick PIN (derived). The quick PIN might not be as secure as a full login sequence, but it's many times more secure than plain text