So let me get this straight, she used someone elses wireless and she lost her passwords and shit. Well no shit. What the hell was she using someone elses wireless for, and what was she expecting to happen because of it?
I agree, it's not generally the smartest thing to do, but that doesn't give him the right to compromise her accounts like that. If anything, he needs to encrypt his network. Either way, I'd like to help her get her stuff back. And perhaps change the asshole's router password or something after setting encryption on it so he can't use his own router.
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