How do you manage your personal cloud data, accounts & backup?

Given the experience of Mat Honan at Wired (who was reportedly nailed by poorly enforced security policies at Apple and Amazon), how do you manage your own personal data? What’s your cloud account and data backup strategy?

My view has been to always keep stuff in the Cloud. By that I tend to mean Google, DropBox and so on.

But what happens when someone socially engineers there way into those accounts and deletes them irrevocably?

That’s a real problem.

So do I need to start storing everything locally and managing the data backup myself?

How do you protect yourself?

And how would you react to someone logging into your Google Picasa or Flickr account and deleting (irrevocably?) 200gb of your memories?

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