99% of crack attempts are done by "kevin mitnick" methods, not password
cracking.
You're right about the probability of password breaking, but
personally I installed denyhosts just because I got sick of this:
indeed, it's very useful but it's not a requirement at all to be secure :)
The only requirements for security are:
1) use proper passwords, or keyfiles but with keyfiles stored on properly
protected machine (geli, proper password for geli too)
2) it's not really wrong to use same (but well done - random) passwords in
many places YOU administer, but never use the same password on any
foreign places.
3) Store that password ONLY in brain.
As herds of morons don't really understand what are passwords for, all
points are usually not respected, point 3 being the most common :)
You want to crack into company server - just look at monitors and notes
glued to it. If you can't - ask a charwoman working there ;)
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