An authenticated attacker can reconfigure the target device to use an external service (such as LDAP or FTP) controlled by the attacker. If an existing password is present for an external service, the attacker can force the target device to authenticate to an attacker controlled device using the existing credentials for that external service. In the case of an external LDAP or FTP service, this will disclose the plaintext password for that external service to the attacker.
The product transmits or stores authentication credentials, but it uses an insecure method that is susceptible to unauthorized interception and/or retrieval.