Dreamhost confirms that it has leaked 3,500 FTP passwords of its customers

Dreamhost is yet again in the news - for the wrong reasons. This time it has sent out mails to its customers confirming that 3,500 FTP passwords may have been compromised!! You can read the entire story over at Brian Vuyk's Blog.

Even before the story of it blocking the google bot has died down, this news will come down as yet another damper. I really fail to understand how a reputed hosting company such as DreamHost can get into such a mess. It is most likely that they have not installed some of the critical patches on their systems/servers - which I regard as very pathetic service on their part.

Only hope is that none of the accounts were used for illegal activities which will result in the actual owner being sued. Hope Dreamhost understands the Legalities and monitors all the compromised accounts for any mysterious activities.