Virtual switches are a crucial component of SDN-based cloud systems, enabling the interconnection of virtual machines in a flexible and “software-defined” manner. This paper raises the alarm on the security implications of virtual switches. In particular, we show that virtual switches not only increase the attack surface of the cloud, but virtual switch vulnerabilities can also lead to attacks of much higher impact compared to traditional switches. We present a systematic security analysis and identify four design decisions which introduce vulnerabilities. Our findings motivate us to revisit existing threat models for SDN-based cloud setups, and introduce a new attacker model for SDN-based cloud systems using virtual switches.