Just a few days after NSA whistleblower Edward Snowden warned against the privacy dangers of using Dropbox, the file-sharing service has been hacked with more than 400 passwords being leaked, reports The Next Web.

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The anonymous hacker claims to have at least 7 million user credentials available, and it probably won't be long before these credentials are sold on the black market. Having the username and password makes it incredibly easy for scammers to hack into other accounts.

However, while Dropbox acknowledges that information has been compromised, the company insists that "Dropbox has not been hacked."

In a statement, the company said "these usernames and passwords were unfortunately stolen from other services and used in attempts to log in to Dropbox accounts. We'd previously detected these attacks and the vast majority of the passwords posted have been expired for some time now. All other remaining passwords have been expired as well."

This is the same line Snapchat used when they were hacked last week, blaming it on third party software. The only issue this time is Dropbox does not detail the third party software, and gives no reassurances that the data is safe - other than claiming the passwords posted have expired.

Again, this is a glaring mistake since some of the usernames and passwords authenticate on Dropbox's service. If the passwords were expired, a user wouldn't be able to log-in. Dropbox has notified all affected to change their passwords.

This will hurt Dropbox's reputation as a cloud service provider, currently the most popular cloud service provider. The service has already been in hot water after accidentally auto-deleting files from user's storage without their consent or knowledge.

TagsDropbox, Dropbox hack, password hack, cloud services