It can only steal passwords if you type your password in.
What it does do is exploit the existing cookie (which LJ relies on for you to stay logged in) to post in your journal without asking you. This same technique can be used to, say, have a web page which adds someone to your friends list without your permission. The sausage meme 'merely' automatically posts itself without asking, which is still obnoxious.
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My source is
http://www.livejournal.com/users/linaelyn/627662.html
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See next post.
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What it does do is exploit the existing cookie (which LJ relies on for you to stay logged in) to post in your journal without asking you. This same technique can be used to, say, have a web page which adds someone to your friends list without your permission. The sausage meme 'merely' automatically posts itself without asking, which is still obnoxious.
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