Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL), Inc. (AMZN) and the Unsafe Cloud

Apple Inc. (NASDAQ:AAPL) and, Inc. (NASDAQ:AMZN) would rather we not know this, because they’re involved indirectly in a case of digital erasure of epic proportion.

A story that has been relatively buried in the last couple days is this recent story about Mat Honan, who had relied on “cloud computing” to keep all of his important files and passwords – until he was hacked into and had all of his accounts and important files deleted – including irreplacable photos of his daughter. Apple Inc. (NASDAQ:AAPL)

His iPhone, iPad and MacBook were all attacked remotely. Many have heard about the wonders of cloud computing but, not surprisingly, not many have heard about drawbacks to the cloud.

Mat Honan learned one very big drawback.

On the one hand, Honan did not have a home backup of his files (an external drive, for example), and then he had basically connected each of his accounts with a small piece of information 0 just enough for the hackers to use to get into one account, which connected them to another, and then another. But there were others things learned in this process as well, as Honan explained it.

“But what happened to me exposes vital security flaws in several customer service systems, most notably Apple’s and Amazon’s,” he said. “Apple (NASDAQ:AAPL) tech support gave the hackers access to my iCloud account. Amazon (NASDAQ:AMZN) tech support gave them the ability to see a piece of information — a partial credit card number — that Apple used to release information. In short, the very four digits that Amazon considers unimportant enough to display in the clear on the web are precisely the same ones that Apple considers secure enough to perform identity verification.”

One should remember that businesses need a little time to get caught up to the latest and greatest systems and how to secure them. Cloud computing is still very new, so it is greatly encouraged – especially if you have accounts at Apple, Inc. (NASDAQ:AAPL),, Inc. (NASDAQ:AMZN) or Google, Inc. (NASDAQ:GOOG) that you make sure you take your own precautions to protect what you have – at least until these big companies (and small ones too) get more adept and locking down the cloud.

For sure, no company wants another Mat Honan story.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.