This question discusses encrypting data on the iPhone using the crypt() function. As an alternative, is there a keychain on the iPhone and if so, what code would I use to access it in order to store login details and then retrieve them for us in an application?
In the Keychain Access app on your Mac, if you don't see a list of keychains, choose Window > Keychain Viewer or press Command-1. Select the keychain that you want to view. To see more information about an item, either double-click it or select it and click the Info button in the toolbar.
Make your passwords available on all your devices with iPhone and iCloud Keychain. Use iCloud Keychain to keep your website and app passwords, credit card information, Wi-Fi network information, and other account information up to date across all of your approved devices and Mac computers.
One other thing to note: the keychain APIs don't work in the simulator when using older versions (2.x, 3.x) of the iPhone SDK. This could save you a lot of frustration when testing!
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