Much to our dismay, a hacker got into one of our client sites in November '08. This happened immediately after they sent their username and pwd for FTP in an email.
This means the details were picked up by network sniffers. Please be very careful never to use the word password or pwd in a email, Skype chat, or MSN chat, when sending sensitive information. We always use the word KEY when referring to passwords in emails containing password information.
We write information like this, that is impossible for sniffers to pick up:
U: myname
P: thekeytothekingdom