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Company Leaks 3,500 Users' Passwords

DreamHost is regarded by many as one of the best website hosting companies for the money. Unfortunately, it seems, it's not necessarily the most secure. Last night, DreamHost users received e-mails from the company stating that it had accidentally leaked 3,500 FTP passwords from users' hosting accounts. The problem is that the security leak was discovered two weeks ago when those users began reporting bogus content appearing on their sites.

As of this morning, no public notice has been posted at the host's status webpage. While DreamHost has made no mention of the leak beyond the e-mails sent last night, it did mention that that "less than 0.15%" of the accounts it has were actually accessed via this leak. We think a little public explanation is in order, eh?

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