I woke up to find that all the folders in my shared-web-host with 777 permission had two new php file. The code inside the file could not be read - here is the decoded version: http://pastie.org/779226 (what the...?) That code was injected even inside some PHP files.
I am at a loss as to HOW someone would do this? I know having 777 permission is not the smartest thing, but how did they get into my folder system in the first place.
I'm just a client side programmer, would be great if I had some advice on how to keep this from happening in the future.