Update: Sept 2
ABC News reports that Apple did not find any systemic compromise of its security, and encourages the use of two-step verification of cloud storage (with strong passwords) particularly if very private or personal materials are stored and if someone would actually make money by getting them (as with celebrities). Hopefully, most "ordinary people" don't have images that would be compromising. Again, the idea remains, the government could some day troll cloud accounts for child pornography with hashtag matching.
Update: Sept. 6
Apple is changing security to limit the number of wrong password attempts allowed in access to its Cloud. It will also warn users when material from the Cloud is loaded to different devices. Here is the ZDNet story.
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