#5 / #6 - You're both wrong.
The only thing required for the attack to succeed is that the CODE run locally. This can happen either by a bad guy logging into your machine at you desk (presumably breaking into your house in the process), OR by your wife, brother, sister, uncle, etc running code of malicous origin.
Normally, if the account used to run the code has low privs, like the accounts you would normally give your family members, no harm can be done by it. Or, rather, no harm to the system in general can be done.
With this vulnerability, harm can be done REGARDLESS of the privledges of the account that was used to execute it.
It's not a question of trusting your wife. It's a question of trusting her to never be a victim of clicking the wrong button on a web page, opening a file attachment to an e-mail, etc. History shows that, in general, your trust would be misplaced.
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