2009 is the year of malware attacks that use stolen FTP credentials to infect legitimate web sites. Hundreds of thousands websites have been hacked this way and suffered from hidden iframe injections, Gumblar, redirections to bogus anti-virus sites, etc.
The success of those attacks is based on the fact that a significant percentage of web surfer are webmasters and site owners themselves. Once a computer of a site owner is infected, malware can steal his/her FTP credentials and use them to make the site distribute malware to unsuspecting visitors, who, in turn, may also be site owners. As a result, we see rapid growth in number of compromised websites.
There are quite a few hypotheses about how cibercriminals steal the credentials: traffic sniffing, using keyloggers, etc. But the most viable is that trojans simply extract everything they need from configuration files of popular FTP programs. Let me show how easy it can be done.