http://allthingsd.com/20130426/livingsocial-hacked-more-than…
The information accessed includes names, email addresses, date of birth for some users, and encrypted passwords — technically ‘hashed’ and ‘salted’ passwords. We never store passwords in plain text.
The database that stores customer credit card information was not affected or accessed.
The database that stores merchants’ financial and banking information was not affected or accessed.
Yeah this happened a few days ago, and it affects pretty much all LivingSocial sites. As LivingSocial is developed with Ruby on Rails, it was rumoured that it was hacked with recent ActiveRecord vulnerability.
The thing is, not all hash algorithm are the same. Some have vulnerability with bad clashes (md5), some are created for efficiency to quickly find hash value, and some are designed specifically to be slow to be used to product password hashes. We have no idea which one LivingSocial uses.
Anyway. This day and age you can pretty much be sure that website would be hacked sooner or later. This week it's LivingSocial, and next week it might be Amazon or OzBargain (!!) so make sure you (1) don't use common words as password (2) don't use password on more than one site.