You should try to avoid any network service which sends and receives passwords in cleartext over a net like FTP/Telnet/NIS/RPC. The author recommends the use of ssh instead of telnet and ftp to everybody.

Keep in mind that migrating from telnet to ssh, but using other cleartext protocols does not increase your security in ANY way! Best would be to remove ftp, telnet, pop, imap, http and to supersede them with their respective encrypted services. You should consider moving from these services to their SSL versions, ftp-ssl, telnet-ssl, pop-ssl, https ...

Most of these above listed hints apply to every Unix system (you will find them if reading any other hardening-related document related to Linux and other Unices).