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Security implications of bypassing sign-on

Do you have any information on the security implications of configuring a 5250 session to bypass sign-on? The only documents found on the IBM site still state that bypassing sign-on could have security implications. I recall reading somewhere that Client Access actually encrypts the password, whereas the 5250 sign-on screen uses just a display file.
I don't see any security implications with bypassing sign-on. A service pack in V4R4M0 will encrypt the password. As long as you are using a version of Client Access that is greater than V4R4M0 SF60796, there should be no security implications.

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