cd /news/artificial-intelligence/i-audited-3-ai-coding-tools-for-priv… · home topics artificial-intelligence article
[ARTICLE · art-32727] src=dev.to ↗ pub= topic=artificial-intelligence verified=true sentiment=↓ negative

I Audited 3 AI Coding Tools for Privacy — The Difference Is 100x

A developer audited three AI coding tools—Claude Code, Cursor, and Cline—for privacy and found that all archive conversations in local plaintext without informing users. Claude Code stored 43MB of conversation data and saved API keys in plaintext, while Cursor stored passwords in plaintext JSONL. Cline was the only tool to store API keys in the OS keychain but still archived all conversations. None of the tools achieved a perfect privacy score.

read4 min views1 publishedJun 18, 2026

Claude Code stores 43MB of your conversations. Cursor saves your passwords in plaintext JSONL. Cline is the only one that puts your API key in the OS keychain — but it still archives everything you say.

Not one of them tells you this is happening.

Two weeks ago, I discovered Claude Code had silently archived 43MB of my complete conversation history on my machine. I wrote about it. The comments asked: "What about Cursor? What about Cline?"

I tested them. The results were more nuanced than I expected.

Three tools. Five dimensions. One standardized test script.

Dimension What I Tested
Conversation Storage What's stored? Format? Size?
Credential Security How is the API key stored? Plaintext or encrypted?
User Awareness Does the tool tell you it's archiving your conversations?
Data Isolation Can AI in Project A read conversations from Project B?
Uninstall Residue Does conversation data survive uninstallation?

In each tool, I typed the same three things: a normal coding question, a database connection string with a password, and an API key.

Conversation Storage: ~/.claude/projects/

, JSONL format. One file per session.

Opening one 2.3MB session file:

Content Count
AI responses 590
AI internal thinking 272
Tool calls 101
Tool call results (incl. file paths) 100
File history snapshots 208

Credential Storage: settings.json

— plaintext. The built-in Read tool can access this file without restriction.

Data Isolation: No. Global history file merges all projects.

Uninstall Residue: 19 project directories, 43MB of conversation data.

Conversation Storage: agent-transcripts/

, JSONL format. Same structure as Claude Code — user input, AI responses, tool calls all stored. Size depends on conversation length.

Stores every user input, every AI response, and every tool it called. Does not store tool execution results or thinking blocks — in Plan mode.

Credential Storage: SQLite database stores tokens at 415 bytes each. Better than plaintext.

My test password and API key: Both written verbatim into the transcript file.

Data Isolation: Yes. Per-project separation.

Conversation Storage: Open source, directly auditable. Each task gets its own directory with 4 JSON files:

tasks/<taskId>/
  api_conversation_history.json   — Full API messages (incl. tool results)
  ui_messages.json                — Chat UI records
  task_metadata.json              — Metadata
  context_history.json            — Context evolution

Stores no less than Claude Code in conversation content — complete API message format, tool use and tool results included.

Credential Storage: The only tool that got this right. API key goes through VS Code Secrets API to Windows Credential Manager. Not stored in a file.

Data Isolation: Yes. Per-task isolation.

Dimension Claude Code Cursor Cline
User input Full text Full text Full text
AI responses Full text Full text Full text
AI internal thinking 272 entries None None
Tool execution results Includes file paths Plan mode: no Yes
Session size 2.3MB 16KB 4 JSON files
API Key storage Plaintext JSON SQLite OS keychain
Conversation format JSONL JSONL JSON
User informed No Asked about sharing No
Cross-project isolation No Yes Yes
Open source (auditable) No No Yes
Credential security:  Cline >>> Cursor >> Claude Code
Conversation privacy: All three archive everything, none tells you
Data volume:          Claude Code >>>>> Cline > Cursor
Transparency:         Cline (open source) > Cursor > Claude Code

No tool scored perfectly.

Three tools. Three architectures. Two business models. One thing they all share:

They all archive your conversations in local plaintext. Not one tells you.

This isn't one tool's vulnerability. This is the AI coding tool category defaulting to "archive everything" — and users not knowing it.

Level Action
Daily Periodically clean up conversation directories
Never Paste real passwords or tokens into AI conversations
Before selling Delete all tools' conversation archives
When choosing Know what each tool stores before you install

Part 3 of the "AI Tool Privacy" series. Next: Prompt Injection in Practice — How a Malicious CLAUDE.md Can Make Your AI Betray You.

── more in #artificial-intelligence 4 stories · sorted by recency
── more on @claude code 3 stories trending now
sponsored brought to you by zahid.host 4,200+ EU-deployed projects
reading about agents? ship yours in a single git push.

Run your AI side-project on zahid.host

EU-based hosting, git-push deploys, automatic HTTPS, no cold starts. Free tier with a custom domain — perfect for shipping the agent you just read about.

$git push zahid main
Live at https://your-agent.zahid.host
Get free account → Pricing
from €0/mo · no card required
LIVE [news/i-audited-3-ai-codin…] indexed:0 read:4min 2026-06-18 ·