It looks like Google Wallet’s PIN security has been cracked on rooted
devices, although if your Android device is not rooted then the
security on the Google Wallet Pin seems to be fine.
The PIN for Google Wallet is stored encrypted on your Android
devices, and a method has been discovered to reveal the SHA256 hex
encoded PIN information, which enables the PIN to be discovered, the
crack was discovered by the guys from Zvelo.
Google has been apparently been notified about the issue, and is
working on a fix, although this may involve some changes to the way
Google Wallet works, and also the terms of service of Google Wallet, the
video below shows the crack in action.
This is only going to be a problem if you actually lose your Android
device, and if it is rooted, although if you have a passcode on your
Android device lock screen then it should be harder for anyone to crack
You can find out more information about the security crack on Google
Wallet, and what it means if you have a rooted Android device over at Android Central.