Dreamhost FTP/Shell Password Database Breached
New submitter Ccmods writes "Below is a snippet from an email Dreamhost sent to subscribers early Saturday morning, describing an intrusion into the database storing FTP and SSH usernames and passwords: 'We are writing to let you know that there may have been illegal and unauthorized access to some of your passwords at DreamHost today. Our security systems detected the potential breach this morning and we immediately took the defensive precaution of expiring and resetting all FTP/shell access passwords for all DreamHost customers and their users. ... Only the FTP/shell access passwords appear to have been compromised by the illegal access. Web panel passwords, email passwords and billing information for DreamHost customers were not affected or accessed.'"
As a Dreamhost customer, I watched this unfold in real time. Apparently the passwords were hashed, and there's no indication that they were compromised, other than the fact that it was technically possible. So they changed the passwords because it's cheaper, PR-wise, than being wrong.
There's a big warning up on the panel, which has a password stored in a different, non-compromised DB. Between the panel and the email, I doubt anybody's confused as to what's going on.
In other words, it's really not that big of a deal. The database shouldn't have been compromised, and I'll expect a full postmortem of how they screwed that up, but in terms of damage (or even inconvenience), there really isn't any to speak of.
I have developed a truly marvelous proof of this comment, which this signature is too narrow to contain.