There is a site named plaintextoffenders.com which lists sites which they claim store plain text passwords, i.e. not hashed or encrypted. As proof they let users email screenshots to them.
Many of the screenshots looks like this:
or changed the password
You have successfully changed your password to: XXXX
There is nothing that says that those passwords is stored in plain text in the database. When you register your account or change the password you do type it in the HTML form. Hence it’s sent as plain text to the web server, which then can be used to generate the welcome email.
The only time you *might* have proof of someone storing your password as plain text is if you can request it (like a “forgot password” form). The password might not have been hashed, but it can still have been encrypted. It’s not as secure as hashing (if a potential hacker gets access to the encryption key), but more secure than storing plain text.
I’ve misinterpreted what their goal was. This page explains it.
Email using port 25 is not secure. But most email providers today uses SSL when sending and retrieving emails, which means that man in the middle attacks are not possible. You are only vulnerable for the “email attacks” if the attacker has done the following:
1. Gain access to the router that you or the web site is on (or hacked your computer)
2. Your email provider do not use secure transfers of emails (as most do today).
The chance is imho quite slim which makes this security issue trivial compared to others.
What I’m saying that it’s always important to shed a light on security problems, but don’t scare the users by making them sound bigger than they are.