CVE-2025-56527 identifies a security vulnerability in Kotaemon version 0.11.0, where user passwords are stored in plaintext within the client's localStorage. LocalStorage is a web browser feature that stores data persistently on the client side but is accessible to any script running in the same origin, making it susceptible to theft if an attacker can execute malicious scripts via cross-site scripting (XSS) or if the device is compromised. Storing passwords in plaintext violates best security practices, as it exposes sensitive credentials to attackers without encryption or hashing. This vulnerability does not require server-side compromise and can be exploited solely through client-side attack vectors. Although no public exploits have been reported, the risk remains significant due to the potential for credential theft and subsequent unauthorized access to user accounts or services. The vulnerability was reserved in August 2025 and published in November 2025, but no CVSS score has been assigned yet. The absence of patch links suggests that a fix may not be publicly available at this time, increasing the urgency for users to implement interim mitigations. The vulnerability affects all users of Kotaemon 0.11.0 or earlier versions that store passwords in localStorage, potentially impacting any organization relying on this software for authentication or user management.

The primary impact of this vulnerability is the compromise of user credentials through client-side attacks. For European organizations, this could lead to unauthorized access to sensitive systems or data if attackers obtain plaintext passwords. The exposure of passwords undermines confidentiality and integrity, potentially enabling lateral movement within networks or data exfiltration. Since the vulnerability resides on the client side, it can be exploited without server compromise, increasing the attack surface. Organizations with remote or mobile users are particularly at risk if devices are lost, stolen, or infected with malware. The lack of encryption or hashing means that once accessed, passwords can be immediately used or sold on underground markets. This could also damage organizational reputation and lead to regulatory penalties under GDPR if personal data is compromised. The absence of known exploits suggests the threat is currently theoretical but could be weaponized quickly given the simplicity of exploitation. Overall, the vulnerability poses a high risk to European entities using Kotaemon, especially those in sectors with strict data protection requirements.

Organizations should immediately audit their use of Kotaemon 0.11.0 and identify any instances where plaintext passwords are stored in localStorage. Until an official patch is released, developers should refactor authentication mechanisms to avoid storing passwords client-side; instead, use secure, short-lived authentication tokens stored in HttpOnly, Secure cookies or use browser sessionStorage with proper security controls. Implement Content Security Policy (CSP) headers to mitigate XSS risks that could expose localStorage data. Educate users about the risks of client-side password storage and encourage strong, unique passwords combined with multi-factor authentication (MFA) to reduce the impact of credential theft. Regularly monitor client devices for malware and unauthorized access. Once a patch is available, prioritize its deployment. Additionally, conduct penetration testing focused on client-side storage and script injection vulnerabilities to identify and remediate similar issues proactively.