I fixed this by doing the following:

chmod  2555  /usr/sbin/ssmtp
chgrp mail /usr/sbin/ssmtp
chmod 640 ssmtp/ssmtp.conf  


This should be the default for this package.  You don't want plaintest 
passwords visible for any mail account on the system.  It's a simple fix!

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https://bugs.launchpad.net/bugs/654065

Title:
  ssmtp.conf security

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