It's Stuart here from the BackupAssist team, thanks for posting on our forum.
My deepest apologies regarding this situation. We have performed extensive testing in regards to password security and within our testing environment we found no issues with the encryption.
In saying this I have escalated your information directly to the development team leader so that it can be investigated further to make sure that in all cases the password is encrypted.
Would it also be possible for you to send in a set of diagnostic information so that we know exactly how you've got BackupAssist set up so that we can try replicate this in our testing environment also?
To send us diagnostic information please follow these steps:
1) Go to Contact Support (from the bottom-left corner of the console) -> Contact Support
2) Fill out the form and ensure that the Submit system diagnostics checkbox at the bottom is checked.
Yet again my apologies, I am unsure why this has happened and as stated above the development team are going to get onto this straight away. If you have anything to add please reply to my post or send an e-mail directly to firstname.lastname@example.org