I also noticed a frighteningly large number of small websites that get 'password reset' absolutely wrong, compromising their users' accounts. It is something that is very difficult to get right, unless thought through completely before implementation. Whenever I signup for a new user account on a fairly new website, I try to use a dummy throwaway password on the first attempt and then try the password reset option to see if the website is actually serious about security. It is like a litmus test for me to decide about continuing to use the website and trusting them with more of my data.