Some might point out that the breach affected only 1% of the site's users, but we are still talking about 1 million people whose username, passwords and emails were taken by hackers.
Scribd said the percentage was so low because the subset stolen was encrypted with an outdated algorithm - SHA1 + salt - which has become the most exposed folly in most of these breaches.
Scribd reset the compromised passwords and notified users.
The other 99% of passwords at Scribd show, hopefully, that it is at the forefront of an epiphany that might not be a panacea but is movement in the right direction.
Scribd is using scrypt, which is a computationally intensive algorithm designed to make it harder to crack what has been encoded . Not impossible, but harder. The goal should be impossible, but conventional wisdom holds that anything encoded can be decoded.
Movement in any positive direction, however, is needed because passwords are under siege.
A few days ago, War-Z, a first-person online Zombie-themed game was taken offline after attackers gained access to e-mail addresses and password data from among its 600,000 gamers.
Last month, Evernote forced the reset of passwords for 50 million customers, and Apple changed its password-reset procedure after a flaw was found. The month before, Twitter had 250,000 user passwords stolen by hackers.
In January, the UK slapped Sony with a $400,000 fine for a password breach in 2011, which cost the company more than $170 million to clean-up and a more than $25 drop off in its stock price.
Among the victims last year, Zappos reported 24 million accounts breached. Yahoo, 450,000 email addresses and passwords stolen. LinkedIn six million passwords taken and EHarmony 1.5 million passwords compromised.
It's a pattern. Ask providers how they are storing your password. Ask what they are doing to find something better. Ask how you can best protect yourself.