Urgent - Users can go into /etc and anywhere

I have two servers running latest redhat linux and cpanel. Only today to my astonishmnet I found if I access shell as any user I can go anywhere such as /etc /usr... I can even view any file in /etc such as passwd. How could that be? The servers have been running for quite a while and I dind't change any thing coming with the server from my host company.

Is that a serious problem?

Thank you for your answer.

 

 

 

 

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