Hordes of Spammy links showing in HTML code

Hi,
If you look at the source code for this site you'll see a long list of what appears to be spammy links wrapped in a font tag.

What kind of hack is this? And how detrimental to the site is it? We are going to be redirecting the domain name to a new site that has a completely different domain name. Will this hacked domain tarnish the new one?

Thanks!
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Alicia St RoseOwner & Principle Developer/DesignerAsked:
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Dave BaldwinFixer of ProblemsCommented:
If it is yours, you need to get rid of those links.  Basically it is an old 'trick' to try to get links in the search engines.  Don't know if Google will recognize it as that but it's not good either way.
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GaryCommented:
This is your site?
That list of links appears to be hacked websites, and that particular website is just a link farm for it.
And how detrimental to the site is it
Could wipe you off Google's search

Why not fix the current domain?
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Alicia St RoseOwner & Principle Developer/DesignerAuthor Commented:
This is my client's current site. We've been working for months on this ecommerce site and will be forwarding the domain to it on Sunday.

How did this happen? They certainly didn't do it. Looks like security was compromised at their hosting provider...
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Alicia St RoseOwner & Principle Developer/DesignerAuthor Commented:
The reason for the domain change is the biz name change...
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Dave BaldwinFixer of ProblemsCommented:
Make sure that doesn't get left there.
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GaryCommented:
The code or the server was hacked simple as, you need to review the security on your site.
Could have been hacked through a contact form, unsanitized form code etc.
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nanharbisonCommented:
Have you signed this site up with Google webmaster tools? It is free, and you would be alerted to junk like this on your site so you can remove it. I had links like this inserted in the template file of a Wordpress site I maintain. I think you can assume the ftp link to the site has been hacked, so the password needs to be changed to something more secure.
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Alicia St RoseOwner & Principle Developer/DesignerAuthor Commented:
We went ahead and forwarded the domain to the new domain. But all of your responses were extremely helpful!
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Dave BaldwinFixer of ProblemsCommented:
Thanks for the points.  I hope you still deleted those links or killed the hosting so that it couldn't be used by IP address for bad purposes.
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Alicia St RoseOwner & Principle Developer/DesignerAuthor Commented:
We did get rid of the links. Hosting is still running though. We should drag the files off the server. And I'll suggest they end the hosting...Since the new site is hosted with a different company...
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