Can I Trust Storage in the Clouds?

I just read a thread on Raymond's Blog Forum about CX (online storage+) and it started me thinking about how useful cloud storage (i.e. DropBox, CX etc.) could be if I could trust it. Three questions:

1. Is the cloud storage as secure as the storage companies indicate it is?

2. Which free cloud storage do you recommend?

3. Is there good portable encryption software I could use to encrypt financial files before I store them in the cloud?

Your response would be appreciated.

 

You may find some helpful responses in either of these threads...
Do you think "Cloud" is neccesary for security aspect?
Do you trust the cloud?

 

If you're going to use the cloud for banking/financial stuff i suggest Truecrypt container with very strong password, however i wouldn't put any banking/financial stuff on the cloud even if it is encrypted, but that's me

I know Wuala has a client side encryption, but like i said truecrypt container is a must for such stuff.

EDIT: also truecrypt is portable so that covers your 3rd question

 

I use SugarSync free (5 GB) to store a TrueCrypt container with sensitive information. I don´t backup it permanently, because this would imply to upload it very frequently, even if I had only open it and not changed anything. I backup it only twice a month.

So far it has worked well, no problem. I have also local backups of the same container.

I chose SugarSync and not DropBox (2 GB free) because with the first it is not necessary to put the files to be backed up in the Magic Folder.

 

Dropbox is a great example of cloud gone wrong. They've had so many security issues on top of the fact that the key they use to encrypt your stuff is known to them (so they can decrypt it at will/ with a court order.)

Is something sensitive info/ personal information? Keep it local.
Is something legal, non-personal, non-critical information? Sure, store on cloud.
Is something sensitive info/ personal info but you need it on the cloud? Encrypt it locally before you upload it!