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CBS/ May 11, 2010, 5:39 PM

Five Hidden Dangers of Facebook

Facebook claims it has 400 million users. But are they well-protected from prying eyes, scammers and unwanted marketers?

Not according to Joan Goodchild, senior editor of CSO (Chief Security Officer) Online.

She says your privacy may be at far greater risk of being violated than you know when you log onto Facebook, due to security gaffes or marketing efforts by the company.

Facebook came under fire this week, when 15 privacy and consumer protection organizations filed a complaint with the Federal Trade Commission, charging that the site, among other things, manipulates privacy settings to make users' personal information available for commercial use. Also, some Facebook users found their private chats accessible to everyone on their contact list - a major security breach that's left a lot of people wondering just how secure the site is.

In two words, asserts Goodchild - not very.

On "The Early Show on Saturday Morning," she spotlighted five dangers she says Facebook users expose themselves to, probably without aware of it:

• Your information is being shared with third parties

• Privacy settings revert to a less safe default mode after each redesign

• Facebook ads may contain malware

• Your real friends unknowingly make you vulnerable

• Scammers are creating fake profiles


Is Facebook a secure platform to communicate with your friends?

Here's the thing; Facebook is one of the most popular sites in the world. … Security holes are being found on a regular basis. … It is not as inherently secure as people think it is when they log on every day.

Certainly, there are growing pains. Facebook is considered a young company and it has been around a few years now. It is continuing to figure this out. They are so young they are still trying to figure out how they are going to make money. They don't even have a revenue model yet. It is hard to compare this to others; we have never had this phenomenon before in the way people are communicating with each other - only e-mail comes close.

The potential for crime is real. According to the Internet Crime Complaint Center, victims of Internet-related crimes lost $559 million in 2009. That was up 110 percent from the previous year. If you're not careful using Facebook, you are looking at the potential for identity theft, or possibly even something like assault if you share information with a dangerous person you think is actually a "friend." One British police agency recently reported the number of crimes they've responded to in the last year involving Facebook climbed 346 percent. These are real threats.

Lately, it seems a week doesn't go by without some new news about a Facebook-related security problem.

Earlier this week, a publication called "TechCrunch" discovered a security hole that made it possible for users to read their friends' private chats. Facebook has since patched it, but who knows how long that flaw existed? Some speculate it may have been that way for years.

Last month, researchers at VeriSign's iDefense group discovered a hacker was selling Facebook user names and passwords in an underground hacker forum. It was estimated he had about 1.5 million accounts - and was selling them for between $25 and $45.

And the site is constantly under attack from hackers trying to spam these 400 million users, or harvest their data, or run other scams. Certainly, there is a lot of criticism in the security community of Facebook's handling of security. Perhaps the most frustrating thing is that the company rarely responds to inquiries.

Do people really have privacy on Facebook?

No. There are all kinds of ways third parties can access information about you. For instance, you may not realize that, when you are playing the popular games on Facebook, such as Farmville, or take those popular quizzes, every time you do that, you authorize an application to be downloaded to your profile that you may not realize gives information to third parties.

Does Facebook share info about users with third parties through things such as Open Graph?

Open Graph is a new concept for them - they unveiled it last week at a conference. It actually is basically a way to share the information in your profile with all kinds of third parties, such as partner websites, so they can have a better idea of your interests and what you are discussing, so they can - as they portray it - "make it a more personal experience."

The theory behind Open Graph - even if they have not implemented it - is their whole business model, isn't it?

Well, that is the business model - they are trying to get you to share as much information as possible so they can monetize it by sharing it with advertisers.

Isn't it in Facebook's best interest to get you to share as much info as possible?

It absolutely is. Facebook's mission is to get you to share as much information as it can so it can share it with advertisers. As it looks now, the more info you share the more they are going to with advertisers and make more money.


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Copyright 2010 CBS. All rights reserved.
57 Comments Add a Comment
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Ryan1394 says:
Good information. This is why parents need to monitor their kids activity on Facebook. It's perfectly find to use Mobile spy or Sniper Spy on the phone to make sure your kids are safe. I feel it's better safe than sorry. Know what your kids are facing and help them make them best decision.
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anOPINIONATEDsob says:
Do you have to have a facebook account to sign in to this website in order to exercise your first amendment right to free speech?
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PhineasBoggs says:
Never use your real name. Never tag people in photos. Ask your friends to NOT tag you (or their friends). Don't identify anyone in Picasa, because Google is even worse than FaceBook. Do NOT compromise your friends or their privacy. Be sure you never post your telephone number or anything else.

Use your brain.
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gruven13777 says:
There is 3rd party JavaScript running all over the place on every single big website out there now, even here on CBS. Facebook and Twitter are linked to much of it now.
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fluffy692 replies:
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Cbsnews.com is one of the worst offenders for this. While most websites have a few 3rd party scripts this site has at least 11!
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jfk4950 says:
I have clicked on some things in fb but cancelled because they want to let it get to third party sites. So I don't join any of my fb friends on alot of things. You should be able to connect with friends without the worry of possible fraud.
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maartsen says:
I noticed a couple of days ago that one's "home town" is now a mandated link, information removed from one's profile if one does not accept the link. This happened earlier with employment and education and interests. And once one accepts those links, that information becomes "public" - by Facebook law. What concerns me in particular is that teens and preteens likely love those links to their schools and their hometowns, and the "like" buttons that are now cropping up all over the world. Your 12 year old daughter will probably not have the concern about her credit rating I do, and not have the concept of privacy I maintain.

Beyond that, when I visit websites companies try to sell to me, a 62 year old single male, cars, flat screen TVs, insurance policies, reverse mortgages and programmable toothbrushes. But on Facebook, where I socialize with friends, but don't date, 90% of what I is being sold to me are datable "mature women" and "young women for older" with EE+ cup sizes in V-neck sweaters. It is clearly personalized, lord knows what the parameters are, but if this is what I am deemed to be interested in, what does Facebook think is appropriate for your children? Does anybody know? Because if you're not 11 years old, you don't get to see the things an 11 year old sees.

Facebook advertising is based on the personal information Facebook makes available to its advertisers - apart from anything else, is what I see an indication that General Motors and General Electric and Boeing are shunning Facebook? If that is so, we have a real problem on our hands.

Remember AOL? Once upon a time, companies published their AOL keyword before they published their website URL. AOL, too, tried to take over the world, and fell flat on its face. In many ways, I hope that will happen with Facebook - while the concept is great, the execution puts me and you at risk. Remember that Microsoft bought Hotmail because it had the largest mailing list on the planet, not because free email was such a wonderful concept.
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doctorart10025 replies:
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This is a great example of why technology will not solve societal problems, only make them worse. The mass-marketing of products and services is predatory in nature, and no real option is available for people to refuse to participate. How realistic is it to not update one's computer every five years or so? The problem is that human ability outstrips wisdom, and technology amplifies that power so that now we can devise whole new classes of ways to manipulate other people's desires heedless of the long-term consequences. Fascism still lives, but it is diffuse and subtle, and society is deluded and debased if it thinks that social marketing is anything greater than incipient enslavement.
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jdel58 says:
I got off about a month ago, just too much stuff. And then I read all these different article about how bad security was and this is just one in a slew of them, glad I got off. 400 mil people are on this! I liked it because I could see old friends, super rich information, but if this article is true, they are just selling us to the highest bidder! What a scam!
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mayreewana says:
I know I am.
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mayreewana says:
So who is ready to give up their facebook forever?
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mayreewana replies:
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and myspace because all they do is make you vulnerable to predators, including your own "friends".
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simon_axten says:
Hello,

I work for Facebook.

Some of Ms. Goodchild's answers are just flat out wrong. We'd welcome the opportunity to talk with her and fully explain how Facebook works, especially our advertising programs. In the meantime, readers should know that we don't sell or otherwise share data with advertisers. Any assertion to the contrary is false. Specifically, if an advertiser targets someone interested in boating, we'll serve ad impressions to people with "boating" on their profile somewhere. However, we don't provide the advertiser any names or other personal information about the Facebook users who view or even click on the ads.

Also, it doesn't matter what information is public for ad targeting. The user is just as likely to see a targeted ad if "boating" is private as if it is public. In both scenarios, the advertiser does not get the info.

In summary, the connection Ms. Goodchild describes between public information and advertisers just doesn't exist.

In the future, we would appreciate the opportunity to comment. We can be reached at any time at press@facebook.com. Thanks.

Simon Axten
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