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Are "man in the middle" attacks extremely rare?

In "Some thoughts on the iPhone contact list controversy and app security", cdixon blog

Chris Dixon makes a statement about web security

Many commentators have suggested that a primary security risk is the fact that the data is transmitted in plain text. Encrypting over the wire is always a good idea but in reality “man-in-the-middle” attacks are extremely rare. I would worry primarily about the far more common cases of 1) someone (insider or outsider) stealing in the company’s database, 2) a government subpoena for the company’s database. The best protection against these risks is encrypting the data in such a way that hackers and the company itself can’t unencrypt it (or to not send the data to the servers in the first place).

I am wondering if there is any cold, hard, real world data to back up that assertion -- are "man in the middle" attacks actually rare in the real world, based on gathered data from actual intrusions or security incidents?

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    Yes, hubs exist, though I haven't seen them on typical networks yet. Imagine a testing lab where most of the users are blasé about security, administrators are blasé about web apps requiring that passwords or cookies be sent in the clear, hubs abound (for sniffing phones during testing—easier to set up than a switch with a mirror port), half the computers have two NICs, there's a publicly accessible patch panel, the lab is located in a shared building, and there are few access controls at the entrance. True story. I'd imagine there would be similar environments elsewhere. Commented Oct 16, 2013 at 23:31