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if you are concerned that your telnet session has been sniffed, you need to also stop using FTP and switch to SFTP/FTP over SSH/SCP or something similar. SecureFX supports SFTP.
the reason being, FTP is just as insecure as telnet - it sends passwords in plaintext.
if you do not stop using FTP, you might as well use telnet, too, because you're still just as fucked.
now on to SSH. SSH is more secure, but there have been issues with various versions of it in the past. as is true with any software product, you need to make sure to monitor security lists and install necessary patches. sometimes your host can do this for you, sometimes you need to hire a sysadmin/security admin.
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