A decision by a court in Germany has declared that Facebook must stop collecting data on users without their consent, and give them the option to opt-out. Facebook is appealing, and says without the ability to collect data, they would have to shut down the social network access nationwide. Leo says that is part of the deal you make with Facebook. Free services for collecting data on your usage of Facebook. Someone has to pay the bills.
Under fire for privacy issues, Facebook CEO Mark Zuckberg wrote an op-ed piece in the Wall Street Journal explaining why and how Facebook collects your data and what they do with it. Leo says he thinks that Zuckerberg did a decent job of making his case for the business model Facebook uses. But he's also making the plea for regulators not to regulate social media.
1. Facebook had a terrible year, starting with leaked information to Cambridge Analytica of up to 87 million users. It lost 19% value, up to $100 billion, the biggest loss in the history of the stock market. Mark Zuckerberg lost $40 billion personally. And there was congressional investivations. All told, Facebook had 21 scandals centered around privacy violations. It was as bad a year as Facebook could get.
2. Apple lost 20% of its value. It went from being the first trillion dollar company to no longer holding that title.
Cheryl is concerned that with the recent Facebook security breach, her account will be hacked. Leo says it's more likely that someone will counterfeit her account, lifting her images, and change it just slightly to fool people she knows to friend it. Facebook has reset all 30 million accounts so that users would have to change their passwords. Leo also would recommend turning on 2 factor authentication.
Tom's wife hasn't been able to log into Facebook since last Friday. Leo says that last Friday Facebook logged over 90 million people out of their accounts due to a hack. Many were deactivated until they can prove it's their account. And with over 90 million compromised accounts, it could take awhile. When her account is reactivated, she will have to re-login manually, turn on 2 factor authentication, and it would be a good idea to change her password.
Facebook reported this week that 50-90 million user accounts were hacked or compromised through three bugs in their interface that would allow a hacker to bypass password challenges through a stolen access token, video downloader access. Facebook says they have fixed the bug and made access tokens unusable for the 90 million compromised accounts. So if you had to re-log in this week, chances are that your account was compromised. Leo also says this is a good time to change your password and turn on 2 Factor Authentication in your Facebook settings.
George has heard that Facebook is going to offer free Wi-Fi soon. What does Rich know? Rich says that both Facebook and Google are working on initiatives, but they're aimed primarily at rural areas, where broadband simply isn't available due to limited population.
Caller is having trouble accessing her second Facebook account. Leo says that Facebook has locked one out. Leo says that Facebook doesn't want you to have multiple accounts, though many do. What Leo recommends is using separate browsers (like Chrome and Firefox) for each Facebook account. Or, you can completely log out and then clear your cookies, you can re-log in with the second account.
Patrick uses WhatsApp, but he's concerned about security on his phone. Leo says that the danger isn't that the app will be malicious. It's a safe app if he gets it from the Google Play or iOS App stores. But it is owned by Facebook, and they will use his data for advertising. It isn't using personal details, but some details such as search data, likes, and keywords.
Patrick is also worried that his old iPad isn't being updated anymore. Leo says that while he won't get the most recent iOS, the security updates will continue. Nothing to worry about there.
Twitter banned a ton of fake accounts this quarter, and as a result, not only lost 1 million active users, but also saw their stock take a dump. Even though they made $20 million in the process. But Wall Street says that Twitter isn't growing, and as a result, the value declined. Even Facebook took a hit this week, in the single largest stock loss in Wall Street trading history. $120 Billion in lost value. Mark Zuckerberg lost over half his personal wealth. But Leo says he'll likely bounce back over time.