More details have emerged on how Twitter was hacked on Google's cloud platform. According to this article by Ian Paul of PC World, all it took was a little detective work from a French hacker, who used social media to identify key people and unlock a number of their passwords. It's identity theft 101.
The only reason this breach was discovered is because it was published. It is almost certain that others have been similarly hacked and their data used for stock market trading and other nefarious purposes. This technique is just too easy not to have been exploited by others.
It's not hard to guess people's passwords if you know their birthday, anniversary and other data that can easily be found on social networking sites. Using lost password features built into every application, it is then possible to get still more access (Dan Kaminsky has illustrated this in great detail). And they don't even need social media to hack your data. See this video from ABC News on how easy it is to hack celebrity cell phones.
The more connected you are, the more exposed you are. Like introducing a virus into a colony, once someone in a group is compromised, the whole tribe is exposed. You are only as strong as the weakest link. How many Twitter or Facebook friends to you have? How about your co-workers?
We live in password hell. For the memory challenged there is no real alternative to using the same password for different applications, or writing it down on something easily accessible. Have you clicked "yes" on the message "do you want [your browser] to remember this password"? Enough said.
When passwords are the only mechanism for authentication that throws the burden on the individual.
DNSSEC provides a mechanism to authenticate that you are you (or more specifically that the IP address of your device is indeed your device). So when someone from France tries to log on as you or when they ask for a password re-set, the system would know it was not your device and could stop them.
When you combine authentication with a password, even a simple password, you have a much more powerful way of protecting personal information and, as illustrated by the Twitter/Google hack, private information of employers and their employees.
Google and every other cloud computing vendor who cares about their customers must adopt DNSSEC as soon as possible. Without it their products are incomplete and their users are at risk.