Jumping in - I agree with Ben but I wanted to add...

The biggest problems are caused by obscure websites that require 
username/password (or email address/password) and then don't secure their 
storage of the same. A hacker gets the password file (whether encrypted or not) 
posts it online & very shortly all of the username/password combos are public 
domain. If you use the same password for many sites (as most people do) then 
the hackers have access to all of those sites. Furthermore, the passwords can 
be broken into constituent parts and become part of the dictionary used to 
break future passwords, so using passwords that are made up of variations of 
clever components also breaks down.

In short, use randomly generated passwords & store them securely on your local 
machine.

Hugh.

-----Original Message-----
From: liveaboard-boun...@liveaboardonline.com 
[mailto:liveaboard-boun...@liveaboardonline.com] On Behalf Of Ben Okopnik
Sent: Friday, October 12, 2012 11:05 AM
To: liveaboard@liveaboardonline.com
Subject: Re: [Liveaboard] (no subject)

On Fri, Oct 12, 2012 at 01:21:16PM -0400, Craig wrote:
> Another account hacked?  Yahoo and Hotmail are bad about this.  My
> understanding is that Yahoo and Hotmail login passwords are sent in the clear,
> so if you’re using a public network (McDonald’s?) then your password can be
> captured.

In principle, if you're using a network that you don't control, then a
man-in-the-middle attack is fairly trivial (given sufficient know-how -
which is a good bit more complex than cracking a WiFi access point, for
example.) In practice, going after and collecting individual logins is
way too time- and effort-intensive, so that's generally not how it's
done.
 
> It is also my understanding that Gmail encrypts their passwords end-to-end, 
> and
> therefore are more secure.  If I’m wrong, then courteous corrections would be
> appreciated.

If you go to gmail.com, you'll note that you immediately get forwarded
to an 'https://'-based URI. At that point, Google has handed you a
public key exchange cookie, so you've got encryption as well as the rest
of the security menu. Yahoo does the same; so does Hotmail. None of
which really makes a difference - sending your initial login/password in
the clear is actually very low risk, and barring truly unusual
circumstances, would not result in your account being hacked.

The problems, as well as the attacks, are happening further up the chain
- at the corporate levels. Google is fairly decent about protecting its
data; others, not nearly as good (with Hotmail and Yahoo being some of
the worst.)


Ben
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