facebook privacy investigation fine

Facebook has a lot of problems, then there are a lot of
problems for Facebook—and both are not going to end anytime sooner.

Though Facebook has already set aside $5 billion from its
revenue
[1] to cover a possible fine
the company is expecting as a result of an FTC investigation over
privacy violations, it seems to be just first installment of what
Facebook has to pay for continuously ignoring users’ privacy.

This week, Facebook has been hit with three new separate
investigations from various governmental authorities—both in the
United States and abroad—over the company’s mishandling of its
users’ data
[2].

New York Attorney General to Investigate Facebook Email
Collection Scandal

New York Attorney General is opening an investigation into
Facebook’s unauthorized collection of the email contacts of more
than 1.5 million users during site registration without their
permission.

Earlier this month, Facebook was caught practicing the worst ever
user-verification mechanism
by asking users new to its social
network platform for their email account passwords to verify their
identity.
[3]

However, just last week it turned out that the social network
“unintentionally” uploaded email
contacts
from up to 1.5 million new users on its servers,
without their consent or knowledge, Facebook admitted while saying
the data was reportedly used to “build Facebook’s web of social
connections and recommend friends to add.”

According to the New York Attorney General Letitia James, the
harvested email addresses may have exposed hundreds of millions of
Facebook users to targeted advertisements.

“Facebook has repeatedly demonstrated a lack of respect for
consumer information while at the same time profiting from mining
that data,” James said in a statement[5], adding that now it’s
time that the social media company should “held accountable for how
it handles consumers’ personal information.”

In response to the news, a Facebook spokesperson told The NY Times
that the company is “in touch with the New York State attorney
general’s office and are responding to their questions on this
matter.”

Ireland Investigating into Facebook Over Plaintext Passwords
Scandal

The Irish Data Protection Commission had begun an investigation
into a separate Facebook’s privacy bunder exposed last month when
the social network revealed that it left hundreds of
millions of passwords
 of Facebook, Facebook Lite and
Instagram users exposed in plain text on company servers.

At the time, it was reported that the incident exposed “tens of
thousands” passwords of Instagram users in plaintext, while just
last week it was revealed that the actual number of affected
Instagram users were not in hundreds of thousands but
millions
.
[7]

The exposed passwords were potentially dated back to 2012 and were
accessible to up to 2,000 Facebook employees.

In a statement[8]
on Thursday, the Irish Data Protection Commissioner said it has
launched “a statutory inquiry in relation to this issue to
determine whether Facebook has complied with its obligations under
relevant provisions” of the European Union’s General Data
Protection Regulation (GDPR) designed to protect people’s data.

Canada to Sue Facebook Over Cambridge Analytica Scandal

Canadian regulators are also suing Facebook for allegedly violating
the country’s privacy laws following their investigation into the
March 2018’s Cambridge Analytica
scandal
 and its impact on Canadians.

A joint
report
[10] published Thursday from
Canadian privacy commissioner Daniel Therrien and his British
Columbia counterpart said lax security practices at the company
allowed personal information of hundreds of thousands of Canadians
to be used for political purposes.

The watchdogs started investigating Facebook last year after it
was revealed that a UK political consultancy Cambridge Analytica
harvested data
from about 87 million users
[11] and then used it for
political gain without their knowledge or permission.

The report said Facebook committed a “major breach of trust” and
“abdicated its responsibility for personal information under its
control, effectively shifting that responsibility to users and
apps.”

The United States FTC is also investigating Facebook over the
Cambridge Analytica scandal, and the company has already kept aside $5
billion
[12] from its revenue in
anticipation of the settlement with the commission.

[4][6][9]

References

  1. ^
    $5 billion from its revenue
    (thehackernews.com)
  2. ^
    mishandling of its users’ data
    (thehackernews.com)
  3. ^
    worst ever user-verification
    mechanism
    (thehackernews.com)
  4. ^
    uploaded email contacts
    (thehackernews.com)
  5. ^
    statement
    (twitter.com)
  6. ^
    hundreds of millions of passwords
    (thehackernews.com)
  7. ^
    thousands but millions
    (thehackernews.com)
  8. ^
    statement
    (www.dataprotection.ie)
  9. ^
    Cambridge Analytica scandal
    (thehackernews.com)
  10. ^
    joint report
    (www.priv.gc.ca)
  11. ^
    harvested data from about 87 million
    users
    (thehackernews.com)
  12. ^
    kept aside $5 billion
    (thehackernews.com)

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