Recently, a chaotic image encryption algorithm based on information entropy (IEAIE) was proposed. This paper scrutinizes the security properties of the algorithm and evaluates the validity of the used quantifiable security metrics. When the round number is only one, the equivalent secret key of every basic operation of IEAIE can be recovered with a differential attack separately. Some common insecurity problems in the field of chaotic image encryption are found in IEAIE, e.g. the short orbits of the digital chaotic system and the invalid sensitivity mechanism built on information entropy of the plain image. Even worse, each security metric is questionable, which undermines the security credibility of IEAIE. Hence, IEAIE can only serve as a counterexample for illustrating common pitfalls in designing secure communication method for image data.