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It happened at my work. Another person's machine was infected and the trojan sniffed the entire network around it looking for passwords. It found some. It then used the credentials to upload malware to websites which infected some web pages. Our company is now moving to a policy of...

It'd be nice of sFTP (not ssh shells) were enabled for free accounts. You can have only sFTP without allowing an ssh shell too. If that isn't feasible then FTP with SSL would be a nice alternative. I've seen botnets with trojans in the wild that are stealing FTP credentials by...