There are so many issues with this outlet it is difficult to know where to begin. This outlet should be replaced immediately because it represents an extreme safety risk. Things have changed over the years and now the National Electric Code specifies many such areas in residential dwelling units, such as, but not limited to: Bathrooms; Garages and accessory buildings; All exterior receptacles; Crawl spaces; Unfinished basements; Kitchens; Laundry, Utility, Wet Bar Sink Areas; and Boathouses must have GFCI outlets or at the distribution panel by way of a GFCI circuit breaker. Fix this now and don't wait until it's too late.