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After a bit of research, I found out that FileZilla doesn't encrypt the passwords when they're stored, so that's one way somebody could get to them, and then use one of the password recovery programs which can be found freely online.
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Its not the Filezilla only. The FTP protocol itself transmits plain password. FTP, though efficient for transferring files, lacks any significant security features. The username, password, and file(s) are sent across the network unencrypted (i.e., in plaintext).