Man. Reading posts like these has several effects on me. One is utter shock that anyone could be so stupid. Another is to remind me of how little I know (because I'm sure in the eyes of someone who actually knows anything about security, I'd probably provoke the same reaction). I'm also amazed that some of the people responsible for these things can still find work. Here's my own personal story. The other day, I had…
Not necessarily. They may be using a reversible hash. Not much more secure, but it beats plaintext.
A reversible hash isn't so much a hash as a bijective function. The security of all stored passwords then depends on the secrecy of the "hash" function.