Year of the Compromised Password

No, thankfully I have not had anyone rummaging in my email or buying stuff on my Amazon account.  But this year really has been the Year of the Compromised Password, in terms both of my clients having problems in this department that I've had to sort out, and in terms of people I know apparently sending me invitations to services of dubious origin.

And I have seen quite a lot of resulting speculation about how the passwords got stolen, so I thought I'd pile in...
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