Hi,

I follow the development of Insoshi from Github as I find it
interesting how other people accomplish things in Rails. I'm generally
impressed by the code structure and techniques but I believe the way
passwords are stored is a grave problem.

As far as I can tell with the current password encryption system, if
the host server is compromised (specifically, an attacker accesses the
rails directory) every single password is immediately available.
Admittedly you are going to have lots of other problems if that
happens but even if the attacker adds code to transmit entered
passwords the damage would be a fraction of releasing every password.

Sending passwords in plaintext back over e-mail is also a bad practice
as it is likely to significantly decrease the time required for an
attacker to compromise all of a user's accounts given the common
practice of password reuse.

Please consider using salted hashes or something like the ruby-bcrypt
module. I am particularly concerned because I expect there are many
other programmers like myself who look at the Insoshi project for
ideas and guidance and they take away this dangerous method. At least
a mention of the significant caveat in the documentation would go a
long way.

Best regards,
Andrew
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Insoshi developer site: http://dogfood.insoshi.com/
Insoshi documentation: http://docs.insoshi.com/

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