Found Via Daring Fireball: Tech writer Mat Honan (Wired and elsewhere) describes a destructive hack, with this observation about the state of security for cloud users:
Moreover, if your computers aren’t already cloud-connected devices, they will be soon. Apple is working hard to get all of its customers to use iCloud. Google’s entire operating system is cloud-based. And Windows 8, the most cloud-centric operating system yet, will hit desktops by the tens of millions in the coming year. My experience leads me to believe that cloud-based systems need fundamentally different security measures. Password-based security mechanisms — which can be cracked, reset, and socially engineered — no longer suffice in the era of cloud computing.