> hashed passwords (using MD5)
I don't even know what to say.
> investigating the creation of forged cookies that could allow an intruder to access users' accounts without a password. Based on the ongoing investigation, we believe an unauthorized third party accessed our proprietary code to learn how to forge cookies
How is this possible? Aren't most auth cookies just a session ID that can be used to look up a server-side session? Did they not use random, unpredictable, non-sequential session IDs?