Though earlier it was reported that over 90 million users might have been effected, Facebook has now pared it down to approximately 29 million users. That’s not necessarily a relief; in fact, consumer faith in Facebook has likely never been lower. Facebook has been the target of multiple high profile data breaches in recent memory, but as there are few functional alternatives to the platform, it hasn’t lost a significant portion of its user base.
In the most recent data breach, criminals were able to hijack user access tokens in order to access information such as an individual’s phone number, emails, and tagged locations. Of the 29 million accounts impacted, approximately 14 million had their personal information accessed. On a functional level, many users may have noticed that they needed to log into Facebook again, even on devices that were already logged in.
Though personally identifiable information was compromised, financial data was not. Users who are curious about whether their profile was impacted can go to Facebook’s own help page and scroll down to find out. However, Facebook does not give any information about what data on a profile may have been accessed — just whether the profile itself was.
Though none of this may sound too extreme, it’s actually very alarming. The data breach did not occur due to an entirely unexpected vulnerability, but instead due to negligence; the platform itself was allowing individuals to access user access tokens for the purposes of development.
Those who use Facebook primarily for social media may not have noticed the significant changes the platform has been making. Facebook isn’t just about sharing statuses and events, Facebook also now includes:
- Fundraisers for specific charities
- Sending money directly to users
- Listing things as classified ads
- Ordering food through the internet
These are only a few of the functions now rolled into the platform, many of which include both personally identifiable information and even financial information. While financial information was not compromised during this particular data breach, the possibility remains that it could occur.
Customers are rapidly losing their trust in Facebook, but the social media giant remains in use primarily because there is no valid alternative. Facebook is commonly used by individuals to keep track of their family and friends, messaging them through Facebook’s messenger system and updating themselves through their feed. There is currently no other reliable solution for comprehensive social media interactions. Competing services such as Tumblr, Instagram, and Twitter don’t have the same robust event scheduling and instant messaging platforms.
Thus, even though no one trusts Facebook, a lack of trust may not immediately translate to a reduced amount of active users. The monetary harm to the company tends to be based on the penalties and fines Facebook may need to pay due to its data breaches, rather than potential user loss.
Facebook may need to institute some additional privacy features if it’s to improve its overall security. The ability to permanently delete data off of Facebook’s servers may help; as of now, it can be difficult to even delete an account profile. Facebook has introduced “secret” messages which automatically delete, but it makes it difficult to permanently delete other types of information.
Further, Facebook may need to become more transparent about the data it’s collecting and where the data is being used. Facebook presently collects information regarding the hobbies and relationships of individuals, which are generally used for advertising purposes. Facebook may note that someone appears to be fond of golf and will then allow advertisers to target an individual based on their fondness for golf. This isn’t always immediately transparent to users.
Presently, Facebook is still investigating its security issues and it remains to be seen what actions (if any) Facebook may take to further tighten up, assess, and analyze its security situation. Any further issues may adversely impact the company’s stock profile, and on an individual level, consumers may want to be wary about what they put on the platform.
Regards,
Ethan Warrick
Editor
Wealth Authority
