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Personally I wouldn't recommend the autocreation of accounts - take the extra couple minutes it takes to create the account manually.
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I personally see nothing really wrong with autocreation. However, it's not something you set on "autopilot" (no pun intended), and just walk away from. You need to keep a close eye on it.
The security issue I was referring to, in whmAutoPilot, is an issue they refuse to face. I think it has a lot to do with them boasting whmAP to be so secure that Homeland Security couldn't crack it. So, valid, publicly posted insecurities are swept aside/ignored, until or hopefully they disappear.
My complaint with whmAP is the fact that it requires you to open port 25 (SMTP) to any script that wants to use it. This is a spammer's paradise setting. Now, while whmAP is not a malicious application, that of course does not guarantee that one of your clients won't use this setting against you, by uploading a mass mailer, which points back to you. As expected, when I brought this up to them in their forum, and pointed out valid, damning arguments, they stopped responding, to allow the thread to sink in the ocean of other threads.