The iCloud storage system was indeed hacked recently according to Apple. It’s still perfectly safe if you take the proper precautions though. The attack seems to have been less of a “hack” and more of a password reset using personal information gleamed from information on the web. The advice from Apple is now online and they’re saying that the iCloud system wasn’t hacked, just the account.
The actor Jennifer Lawrence had her account hacked and has already confirmed that topless photos were real. Apple tell us that..
Our customers’ privacy and security are of utmost importance to us. After more than 40 hours of investigation, we have discovered that certain celebrity accounts were compromised by a very targeted attack on user names, passwords and security questions, a practice that has become all too common on the Internet. None of the cases we have investigated has resulted from any breach in any of Apple’s systems including iCloud® or Find my iPhone. We are continuing to work with law enforcement to help identify the criminals involved.
So basically, having security questions with answers that people can find out easily (via Facebook / Twitter or your online profile elsewhere) is a bad idea. Although everyone knows this already, unfortunately people will still continue to be hacked for some time to come. Get more information here or read the full announcement below.
The Guardian has added some good coverage of this, including details on how they tried to hack into accounts.