I was pretty amazed when I heard a company as prominent as DreamHost have a security leak as massive as 3,500 FTP accounts. Caydel was one of the unfortunate customers who had his account bypassed. Apparently he noticed a ton of spam links placed on his website, but didn’t think of anything at the time. Nevertheless, DreamHost still hasn’t discovered the security hole.
If anyone is looking for a new hosting company, I would recommend Sixty6 Hosting.
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I’ve been a Dreamhost customer for years, so I feel the need to defend them. Here’s a link to the DH response to what happened. http://www.dreamhoststatus.com/2007/06/11/web-hosting-break-ins-security-update/