Imagine if, during the Jim Crow era, a newspaper offered advertisers the option of placing ads only in copies that went to white readers.
That's basically what Facebook is doing nowadays.
The ubiquitous social network not only allows advertisers to target users by their interests or background, it also gives advertisers the ability to exclude specific groups it calls "Ethnic Affinities." Ads that exclude people based on race, gender and other sensitive factors are prohibited by federal law in housing and employment.
Here is a screenshot of a housing ad that we purchased from Facebook's self-service advertising portal:
The ad we purchased was targeted to Facebook members who were house hunting and excluded anyone with an "affinity" for African-American, Asian-American or Hispanic people. (Here's the ad itself.)
When we showed Facebook's racial exclusion options to a prominent civil rights lawyer John Relman, he gasped and said, "This is horrifying. This is massively illegal. This is about as blatant a violation of the federal Fair Housing Act as one can find."
The Fair Housing Act of 1968 makes it illegal "to make, print, or publish, or cause to be made, printed, or published any notice, statement, or advertisement, with respect to the sale or rental of a dwelling that indicates any preference, limitation, or discrimination based on race, color, religion, sex, handicap, familial status, or national origin." Violators can face tens of thousands of dollars in fines.
The Civil Rights Act of 1964 also prohibits the "printing or publication of notices or advertisements indicating prohibited preference, limitation, specification or discrimination" in employment recruitment.
Facebook's business model is based on allowing advertisers to target specific groups 2014 or, apparently to exclude specific groups 2014 using huge reams of personal data the company has collected about its users. Facebook's microtargeting is particularly helpful for advertisers looking to reach niche audiences, such as swing-state voters concerned about climate change. ProPublica recently offered a tool allowing users to see how Facebook is categorizing them. We found nearly 50,000 unique categories in which Facebook places its users.
Facebook says its policies prohibit advertisers from using the targeting options for discrimination, harassment, disparagement or predatory advertising practices.
"We take a strong stand against advertisers misusing our platform: Our policies prohibit using our targeting options to discriminate, and they require compliance with the law," said Steve Satterfield, privacy and public policy manager at Facebook. "We take prompt enforcement action when we determine that ads violate our policies."
Satterfield said it's important for advertisers to have the ability to both include and exclude groups as they test how their marketing performs. For instance, he said, an advertiser "might run one campaign in English that excludes the Hispanic affinity group to see how well the campaign performs against running that ad campaign in Spanish. This is a common practice in the industry."
He said Facebook began offering the "Ethnic Affinity" categories within the past two years as part of a "multicultural advertising" effort.
Satterfield added that the "Ethnic Affinity" is not the same as race 2014 which Facebook does not ask its members about. Facebook assigns members an "Ethnic Affinity" based on pages and posts they have liked or engaged with on Facebook.
When we asked why "Ethnic Affinity" was included in the "Demographics" category of its ad-targeting tool if it's not a representation of demographics, Facebook responded that it plans to move "Ethnic Affinity" to another section.
Facebook declined to answer questions about why our housing ad excluding minority groups was approved 15 minutes after we placed the order.
By comparison, consider the advertising controls that the New York Times has put in place to prevent discriminatory housing ads. After the newspaper was successfully sued under the Fair Housing Act in 1989, it agreed to review ads for potentially discriminatory content before accepting them for publication.
Steph Jespersen, the Times' director of advertising acceptability, said that the company's staff runs automated programs to make sure that ads that contain discriminatory phrases such as "whites only" and "no kids" are rejected.
The Times' automated program also highlights ads that contain potentially discriminatory code words such as "near churches" or "close to a country club." Humans then review those ads before they can be approved.
Jespersen said the Times also rejects housing ads that contain photographs of too many white people. The people in the ads must represent the diversity of the population of New York, and if they don't, he says he will call up the advertiser and ask them to submit an ad with a more diverse lineup of models.
But, Jespersen said, these days most advertisers know not to submit discriminatory ads: "I haven't seen an ad with 'whites only' for a long time."
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" 'How about we partner with Pokemon Go?' -- Said in every office at every agency for every client this morning."
Probably. The augmented-reality (AR) mobile game requires players to travel real-life streets to find and capture digital characters superimposed on locations and displayed on the screens of players' phones. The game's screens also display PokeStops and gyms, locations superimposed on real-life landmarks. The CNN video at the end of this blog post provides a good summary. The Apple iTunes site explains important game details:
"Search far and wide for Pokémon and items: Certain Pokémon appear near their native environment—look for Water-type Pokémon by lakes and oceans. Visit PokéStops, found at interesting places like museums, art installations, historical markers, and monuments, to stock up on Poké Balls and helpful items... As you level up, you’ll be able to catch more-powerful Pokémon to complete your Pokédex. You can add to your collection by hatching Pokémon Eggs based on the distances you walk... Take on Gym battles and defend your Gym: As your Charmander evolves to Charmeleon and then Charizard, you can battle together to defeat a Gym and assign your Pokémon to defend it against all comers."
What do we know so far about the AR game? What has happened since the game's launch? What happens when a mobile fantasy game combines real-life locations? Are non-players affected? What might be the implications for future AR games? I looked for answers, found plenty, and organized my findings into good, bad, and ugly categories -- with apologies to Mr. Leone and Mr. Eastwood.
"... Pokemon Go’s game designers have perfectly executed on the “Hook Model” — a framework for gamification and getting users to come back again and again and again."
Advocates have said that the game has gotten gamers off of their couches (e.g., butts) and out into the real world to get exercise, meet people, and explore locations they probably wouldn't have visited otherwise. Sounds good.
Within the game, PokeStops and gyms are located in publicly-accessible locations, such as theme parks, gardens, and museums. This has increased the sales at some nearby, small businesses. IGN reported on July 21:
"Bok Tower Gardens, a “contemplative garden” and National Historic Landmark located in Lake Wales, Fl, is saturated with PokeStops. The non-profit recorded a 10 to 15 percent increase in ticket sales during the first week of Pokemon Go’s release... So far, the only way to become a PokeStop or gym is to send in a request to Niantic Labs, but it isn't likely to be accepted unless the location is one of cultural significance or in a Pokemon Go deadzone."
"... to connect “Pokemon Go!” with real-world flora and fauna... This interactive, ranger-guided walk will allow visitors to uncover the creatures, both physical and virtual, that can be found within the National Lakeshore. They will learn how these creatures do or do not fit in with the rest of the environment, and what can be done to help them thrive. At the end of the program, visitors will be able to design their own Pokemon. “Trainers” of all ages are welcome."
"Many local Minneapolis businesses have considered, or implemented, special promotions to attract more mobile-gamers. Last week, Sencha Tea Bar in Stadium Village released three special shakes in correspondence with the three color teams of the game — red, yellow and blue — said store manager Josh Suwaratana. Suwaratana said the store does special shakes for other occasions, so the Pokemon shakes weren’t anything out of the ordinary... Sencha is also located next to a Pokestop — a real-life location where players can obtain items in the game. Suwaratana said the proximity to the Pokestop has helped business attract players."
"... I would encourage parents to seize the opportunity for their children to capitalize on this gaming experience while at the park or when running errands. My advice is not to judge this new gaming experience as all bad and in need of limits. Rather let’s embrace a step toward video games and virtual reality that may one day be tailored to inspiring those we love with autism spectrum disorder (ASD) to leave the house and receive points/rewards/tokens for gathering information from other people they encounter in the store, at work, or at a place of leisure. To me that sounds an awful lot like what I have been trying to get them to do by learning social skills in my office each week..."
To focus the world's attention upon the impacts to citizens and children, activists have added Pokemon characters to images from war zones. C/Net reported on July 26 that Khaled Akil, a Syrian artist:
"... has taken Pokemon Go creatures and Photoshopped them into pictures of his war-torn homeland, presenting a stark contrast between the whimsy of the augmented-reality game and the sobering day-to-day realities of war... In one image, a young boy walks his bike through a street lined by bombed-out buildings, a Vaporeon by his side. In another, a Pikachu rests on a block of rubble next to a burning car... the activist group Revolutionary Forces of Syria Media Office has been tweeting poignant photos of kids holding up printouts of popular Pokemon creatures, along with their locations, which are identified as being near areas of heavy fighting, and the words 'save me'..."
To view photos, follow the links in the C/Net article to Akil's website and Instagram account.
"During game play, please be aware of your surroundings and play safely. You agree that your use of the App and play of the game is at your own risk, and it is your responsibility to maintain such health, liability, hazard, personal injury, medical, life, and other insurance policies as you deem reasonably necessary for any injuries that you may incur while using the Services. You also agree not to use the App to violate any applicable law, rule, or regulation (including but not limited to the laws of trespass) or the Trainer Guidelines, and you agree not to encourage or enable any other individual to violate any applicable law, rule, or regulation or the Trainer Guidelines. Without limiting the foregoing, you agree that in conjunction with your use of the App you will not inflict emotional distress on other people, will not humiliate other people (publicly or otherwise), will not assault or threaten other people, will not enter onto private property without permission, will not impersonate any other person or misrepresent your affiliation, title, or authority, and will not otherwise engage in any activity that may result in injury, death, property damage, and/or liability of any kind."
The "Conduct, General Prohibitions, and Niantic’s Enforcement Rights" section of the policy also lists the responsibilities of players, including players will not:
"... trespass, or in any manner attempt to gain or gain access to any property or location where you do not have a right or permission to be..."
So, it is important for players to know their responsibilities. Do they? Keep reading.
"Members of the East Providence Police Department said “Pokemon Go” has drawn huge crowds of people to local parks after hours... Officers say they have responded to several calls about the crowds. “They are very peaceful, they’re not causing problems, but it is in a public area – in public parks – and people who live in those areas do deserve to have their rest at night,” said Maj. William Nebus of the East Providence Police Department. “Our parks do close at 9 p.m. and just to have 200 people lurking in overnight hours is not peaceful to the residents.”
Law enforcement in Michigan ticketed players with misdemeanors after late-night, 12:30 a.m. game play. Nearby property owners have found players intrusive. There are two implications. First, it's important for players to understand and comply with local town ordinances and hour restrictions. Second, taxpayers will likely absorb the additional costs of park maintenance, clean-up, and law enforcement patrols to address the increased foot traffic in local parks.
"Your account was permanently terminated for violations of the Pokémon GO Terms of Service. This includes, but is not limited to: falsifying your location, using emulators, modified or unofficial software and/or accessing Pokémon GO clients or backends in an unauthorized manner including through the use of third party software."
"Security researcher Adam Reeve noted that when some users sign into Pokemon Go through Google on Apple devices, they effectively give the game and its developer full access to their Google account; this means, that at least in theory, Niantic... can access players' Gmail-based email, Google Drive based files, photos and videos stored in Google Photos, and any other content within their Google accounts. From a technical perspective, Niantic could potentially send emails on your behalf, or copy and distribute your photos. This is obviously concerning. Perhaps even scarier - and more eye-opening - is that users are accepting such permissions en masse without regard for the risks."
The Offensive Privacy blog offered privacy tips given the game's usage of smartphone cameras:
"While it's a bit outlandish to think that Niantic collects the video streams from every device, it is always a possibility that cannot be completely ruled out. This means anything your camera sees could, in theory, be stored by Niantic... I suggest some common sense tactics that apply to all cameras and video streams when using the AR mode of the game: 1) Never allow the camera to see personal ID such as your license, passport, or other sensitive document; 2) Never let the camera see a license plate or government building. This is especially true for those working in high-security environments; and 3) Avoid letting the camera see street signs, your house, house numbers, etc. It's also possible that metadata could be embedded in the image and made available if the image is shared publicly..."
Regular readers of this blog are already familiar with the privacy issues associated with metadata collection. Some players may be surprised that tips to maintain privacy while playing requires effort.
One measure of popularity are parodies. There is a porn parody of the game titled, "Poke-mon Ho!" Depending upon your lifestyle, you might categorize this as "good." Yes, the parody reportedly is NSFW. No, I haven't seen it.
"The United States Holocaust Memorial Museum and Arlington National Cemetery, both in Washington, DC area, have both issued appeals for players to avoid hunting Pokemon on their sites. "Playing Pokemon Go in a memorial dedicated to the victims of Nazism is extremely inappropriate," said Andy Hollinger, director of communications at the United States Holocaust Memorial Museum in Washington, D.C., in a statement sent to CNNMoney. "We are attempting to have the Museum removed from the game," the statement said... Pokemon Go has a link set up for people to report sensitive locations and contact on its website... According to a statement from The Pokemon Company International and Niantic -- the creators of Pokemon Go -- Pokestops and gyms in the app are found at publicly accessible places. That includes historical markers, public art installations, museums, monuments -- and apparently churches."
I see two problems with the approach the game's developers used. First, the approach seems to have treated all public spaces the same, without considering the unique needs of cemeteries, memorials, and similar places. Game-play isn't appropriate everywhere. Second, Niantic's approach automatically included real-life locations as PokeStops and gyms without first obtaining the property owners' permissions. This approach places the burden on property owners (who aren't players nor participants) to opt-out of the game. Not good. Maybe this was a slick attempt to force property owners to participate. Not good.
"Jeffrey Marder, a resident of West Orange, N.J., found in the days after the release of the successful augmented reality game Pokémon Go, that strangers, phone in hand, had begun lingering outside his home. At least five of them knocked on Marder’s door and asked for access to his backyard to catch and add to their virtual collections of the Pokémon images, superimposed over the real world, that the game developer had placed at the residence without his permission."
"Scott Dodich and Jayme Gotts-Dodich, of St. Clair Shores, filed a class action lawsuit against Niantic, The Pokemon Company and Nintendo... The couple lives on a private cul-de-sac and alleges that over several weeks, Pokemon Go players parked their vehicles on their street and blocked driveways. The couple also alleges that players trespassed on lawns, trampled landscaping and peered into windows. The complaint also alleges that when Jayme Gotts-Dodich asked a Pokemon Go player to leave her property, the player told her to “shut up b****, or else... The suit alleges that the intentional, unauthorized placement of Pokestops and Pokemon gyms on or near private property constitutes a continuing invasion of use and enjoyment. Due to the ignored repeated requests for removal, the couple believes that Niantic is liable for nuisance and that all defendants have been unjustly enriched.”
If a disagreement arises between Niantic and a player, that may not be resolved in court in front of a jury of the gamer's peers. The Niantic Terms of Service policy strips gamers of that right:
"ARBITRATION NOTICE: EXCEPT IF YOU OPT OUT AND EXCEPT FOR CERTAIN TYPES OF DISPUTES DESCRIBED IN THE “AGREEMENT TO ARBITRATE” SECTION BELOW, YOU AGREE THAT DISPUTES BETWEEN YOU AND NIANTIC WILL BE RESOLVED BY BINDING, INDIVIDUAL ARBITRATION, AND YOU ARE WAIVING YOUR RIGHT TO A TRIAL BY JURY OR TO PARTICIPATE AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS ACTION OR REPRESENTATIVE PROCEEDING."
"Pokemon Go has added a new layer of excitement to a day at Disney World for those who seek that variety of enchantment. Disney is benefiting from the craze, even as non-players shake their heads while swerving around distracted gamers. This also could and should be just the beginning. It's only a matter of time before it rolls out its own augmented-reality app... A Disney app likely also wouldn't include a Pokemon-like battle element, at least not in terms of pitting Pluto against Yoda in combat. However, the Disney gym equivalent could be mini-game stations offering everything from speed Disney trivia matches to Virtual Magic Kingdom-type competitions... There are more than 200 Disney Store locations scattered across North America, and more than 120 overseas. These stores can also serve as character-collecting hubs, giving players a local connection for special events. It would also keep interest active outside of theme park visits..."
Microsoft Corporation announced yesterday its plan to purchase the LinkedIn.com social networking site for $26.2 billion, or $196 per share. The Boards of Directors at both companies have approved the transaction. Microsoft will fund the acquisition with additional debt. The high-tech giant explained the acquisition in a blog post:
"LinkedIn is the world’s largest and most valuable professional network and continues to build a strong and growing business. Over the past year, the company has launched a new version of its mobile app that has led to increased member engagement; enhanced the LinkedIn newsfeed to deliver better business insights; acquired a leading online learning platform called Lynda.com to enter a new market; and rolled out a new version of its Recruiter product to its enterprise customers. These innovations have resulted in increased membership, engagement and financial results, specifically:
- 19 percent growth year over year (YOY) to more than 433 million members worldwide, - 9 percent growth YOY to more than 105 million unique visiting members per month, - 49 percent growth YOY to 60 percent mobile usage, - 34 percent growth YOY to more than 45 billion quarterly member page views, and - 101 percent growth YOY to more than 7 million active job listings."
128 million (of the 433 million total) users are in the United States. For 2015, LinkedIn's GAAP (Generally Accepted Accounting Principles) net loss was $166 million. In 2014, the social site lost $15.7 million. The company's Talent Solutions business generates the most revenues, followed by advertising on the site and in the mobile app, and then the site's premium subscription service for memebers.
"This deal brings together the world’s leading professional cloud with the world’s leading professional network... I wanted to share with you how I think about acquisitions overall. To start, I consider if an asset will expand our opportunity — specifically, does it expand our total addressable market? Is this asset riding secular usage and technology trends? And does this asset align with our core business and overall sense of purpose?
The answer to all of those questions with LinkedIn is squarely yes. We are in pursuit of a common mission centered on empowering people and organizations. Along with the new growth in our Office 365 commercial and Dynamics businesses this deal is key to our bold ambition to reinvent productivity and business processes. Think about it: How people find jobs, build skills, sell, market and get work done and ultimately find success requires a connected professional world. It requires a vibrant network that brings together a professional’s information in LinkedIn’s public network with the information in Office 365 and Dynamics. This combination will make it possible for new experiences such as a LinkedIn newsfeed that serves up articles based on the project you are working on and Office suggesting an expert to connect with via LinkedIn to help with a task you’re trying to complete. As these experiences get more intelligent and delightful, the LinkedIn and Office 365 engagement will grow. And in turn, new opportunities will be created for monetization through individual and organization subscriptions and targeted advertising."
LinkedIn went public in 2011. Mashable reported about a possible consolidation in the social networking industry. More sites may be acquired:
"Many of the flashy social networks that Wall Street once fawned over — even if it didn't understand what exactly they do — are now looking for the exit door as the mood sours. LinkedIn, like Twitter and Yelp, has seen its stock obliterated throughout much of the year as social media firms (other than Facebook) are experiencing slower growth, and investors are experiencing less patience... In February, LinkedIn stock was nearly halved overnight after a single disappointing earnings report. The plunge was so severe that the company's CEO had to give a pep talk to his team and later gave away his bonus to employees suffering from financial whiplash... Twitter, arguably the second most anticipated social media IPO after Facebook, has seen its market cap fall to less than $10 billion in recent weeks..."
And, there are three related privacy issues. First, LinkedIn had a massive data breach in 2012, affecting 117 million persons. Hopefully, the acquisition will also help the social networking site improve its data security. If not, the profitability slide will likely continue.
Second, it is important to remember that during any corporate acquisition, the acquiring company gets the assets of the acquired company. Assets usually include databases of information about customers, current employees, former employees, and contractors. If you use LinkedIn or did business with the social site and never did business with Microsoft, then Microsoft will soon have your sensitive personal and payment information.
Third, the acquisition reinforces the impression that Microsoft bought in entirely to big data. Like Google, it wishes to collect as much information as possible about as many people as possible. Big data matters, especially to cloud services vendors.
Recently, some friends and I were discussing the wisdom of getting your news from social networking websites (e.g., Facebook, Twitter, Snapchat, Youtube, LinkedIn, etc.) instead of directly from news media sites. Apparently, many consumers get their news from such sites.
The Pew Research Center reported that most adults in the United States, 62 percent, get their news from social networking sites. The corresponding statistic in 2012 was 49 percent. Fewer social media site users get their news from other platforms: local television (46 percent), cable TV (31 percent), nightly network TV (30 percent), news websites/apps (28 percent), radio (25 percent), and print newspapers (20 percent).
Pew analyzed which social networking sites were used the most for news, and whether consumers used multiple sites to obtain news. The Pew Research Center found:
"Two-thirds of Facebook users (66 percent) get news on the site, nearly six-in-ten Twitter users (59 percent) get news on Twitter, and seven-in-ten Reddit users get news on that platform. On Tumblr, the figure sits at 31 percent..."
The corresponding statistics are 23 percent for Instagram, 21 percent for Youtube, 19 percent for LinkedIn, and 17 percent at Snapchat. The implications:
"Facebook is by far the largest social networking site, reaching 67% of U.S. adults. The two-thirds of Facebook users who get news there, then, amount to 44% of the general population. YouTube has the next greatest reach in terms of general usage, at 48% of U.S. adults. But only about a fifth of its users get news there, which amounts to 10% of the adult population. That puts it on par with Twitter, which has a smaller user base (16% of U.S. adults) but a larger portion getting news there."
About audience overlap, Pew found that most people (64 percent) get their news from one social media site. 26 percent get their news from two social media sites, and 10 percent get their news from three social media sites. Pew also found that more users at Reddit, Twitter, and LinkedIn seek out news versus stumbling across it by accident:
Percent of news users of each site who mostly get news online
Social Networking Site
While doing other things
Because they're looking for it
Who are the news users at the five largest social sites with news users? The users vary by site:
"... while there is some crossover, each site appeals to a somewhat different group. Instagram news consumers stand out from other groups as more likely to be non-white, young and, for all but Facebook, female. LinkedIn news consumers are more likely to have a college degree than news users of the other four platforms; Twitter news users are the second most likely."
The demographic data:
Some of you are probably wondering about Google+ and Pinterest. Pew removed three social media sites because:
The survey was conducted from January 12 to February 8, 2016 and included 4,654 respondents (4,339 by web and 315 by mail). The methodology included a randomly-selected subset of U.S. adults (6,301 total web-based persons and 474 total mail persons.
David Carroll, an associate professor of media design at Parsons School of Design, posted the warning below on Twitter. I checked my Facebook settings and this specific advertisement setting had indeed been changed. So, check yours today. It's fast and easy. It will take at most half a minute to check and change it.
What's driving this activity by the social network? The Washington Post summarized the situation well when it discussed new ad features the site introduced in 2014:
"Things are about to get better for Facebook customers! Not you. You are not a Facebook customer. Advertisers are Facebook customers. You are part of the Facebook product... Facebook, at its moneymaking core, is a system for showing ads to people... why we’re seeing this is because Facebook is not a social network. It is an advertising network... And it seems to be banking on what is always banks on: our unwillingness to change any default settings or think about the flip side of data sharing."
Now, go check and restore your ad settings to maintain privacy.
"We recently learned that a third party had obtained access to a set of Tumblr user email addresses with salted and hashed passwords from early 2013, prior to the acquisition of Tumblr by Yahoo. As soon as we became aware of this, our security team thoroughly investigated the matter. Our analysis gives us no reason to believe that this information was used to access Tumblr accounts. As a precaution, however, we will be requiring affected Tumblr users to set a new password."
That early May announcement directed users to reset their passwords, and use secure https connections. It didn't state the number of affected accounts. Well, now we know more.
"Independent security researcher Troy Hunt revealed today that he received a data dump that contains 65,469,298 emails and hashed passwords, which the anonymous donor said belonged to Tumblr users. The researcher tracked the data dump to The Real Deal Dark Web marketplace, where a hacker by the name of Peace (also known as Peace_of_mind) is selling it for 0.4255 Bitcoin ($225)..."
That's 65.4 million passwords compromised. A massive breach affecting about one out of every eight Tumblr users. The good news: Tumblr had encyrpted its users' passwords. The bad news: the hackers have broken the encryption. That means Tumblr users probably should, a) change their passwords again, and b) inquire what Tumblr is doing to better protect sensitive information so this doesn't happen again.
It seems that Tumblr's breach detection and security processes are both lacking. Softpedia also reported:
The 2012 data breach at LinkedIn.com was far larger and worse than originally thought. Motherboard reported:
"A hacker is trying to sell the account information, including emails and passwords, of 117 million LinkedIn users. The hacker, who goes by the name “Peace,” told Motherboard that the data was stolen during the LinkedIn breach of 2012. At the time, only around 6.5 million encrypted passwords were posted online, and LinkedIn never clarified how many users were affected by that breach... The paid hacked data search engine LeakedSource also claims to have obtained the data. Both Peace and the one of the people behind LeakedSource said that there are 167 million accounts in the hacked database. Of those, around 117 million have both emails and encrypted passwords."
So, the breach included 167 records affecting as many persons, not 6.5 million. And, 117 million people are at risk now. To make matters worse, hackers have already cracked the encryption method LinkedIn.com used to protect users' passwords:
"The passwords were originally encrypted or hashed with the SHA1 algorithm, with no “salt,” which is a series of random digits attached to the end of hashes to make them harder to be cracked. One of the operators of LeakedSource told Motherboard in an online chat that so far they have cracked “90% of the passwords in 72 hours..."
And, the incident cast doubt on both LinkedIn.com's breach detection methods and the response by the company's executives:
"... LinkedIn spokesperson Hani Durzy told Motherboard that the company’s security team was looking into the incident, but that at the time they couldn’t confirm whether the data was legitimate. Durzy, however, also admitted that the 6.5 million hashes that were posted online in 2012 were not necessarily all of the passwords stolen. “We don’t know how much was taken,” Durzy told me in a phone call. The lesson: For LinkedIn, the lesson is the same as four years ago: don’t store password in an insecure way..."
"Yesterday, we became aware of an additional set of data that had just been released that claims to be email and hashed password combinations of more than 100 million LinkedIn members from that same theft in 2012. We are taking immediate steps to invalidate the passwords of the accounts impacted, and we will contact those members to reset their passwords. We have no indication that this is as a result of a new security breach... For several years, we have hashed and salted every password in our database, and we have offered protection tools such as email challenges and dual factor authentication. We encourage our members to visit our safety center to learn about enabling two-step verification, and to use strong passwords... We're moving swiftly to address the release of additional data from a 2012 breach, specifically: We have begun to invalidate passwords for all accounts created prior to the 2012 breach that haven’t updated their password since that breach. We will let individual members know if they need to reset their password. However, regularly changing your password is always a good idea..."
Many people use the LinkedIn.com social site to network with professionals in their field, and find jobs. If you use the site, experts advise consumers to change your password immediately and don't reuse the same password at multiple websites.
You've probably heard of the term, "sharing economy" (a/k/a digital economy). It refers to a variety of companies that link buyers and sellers online. These companies include taxi-like ride-sharing services (e.g., Uber, Lyft), home sharing services (e.g., Home Away, Airbnb, VRBO), delivery services (e.g., Postmates), and on-demand labor services (e.g., TaskRabbit).
The 2016 "Who Has Your Back?" report by the Electronic Frontier Foundation (EFF) focused upon companies in the sharing economy, and their policies and practices for inquiries by law enforcement. Prior annual reports included social networking websites, email providers, Internet service providers (ISPs), cloud storage providers, and other companies. The EFF observed that companies in the sharing economy:
"... also collect sensitive information about the habits of millions of people across the United States. Details about what consumers buy, where they sleep, and where they travel are really just scratching the surface of this data trove. These apps may also obtain detailed records of where your cell phone is at a given time, when you are logged on or active in an app, and with whom you communicate.
It’s not just the purchasers in the gig economy who have to trust their data to the startups developing these apps. Individuals offering services are users just like the buyers, and also leave behind a digital trail as (or more) detailed than that of the purchasers. From Lyft drivers to Airbnb hosts to Instacart shoppers, people providing services are entrusting enormous amounts of data to these apps... As with any rich trove of data, law enforcement is increasingly turning to the distributed workforce as part of their investigations. That’s not necessarily a bad thing, but we need to know how and when these companies actually stand up for user privacy..."
So, it is sensible and appropriate to evaluate how well (or poorly) these companies protect consumers' privacy and communicate their activities. The EFF found overall:
"Many sharing economy companies have not yet stepped up to meet accepted tech industry best practices related to privacy and transparency, according to our analysis of their published policies. This analysis is specific to government access requests for user data, and within that context we see ample room for improvement by this budding industry... however, some gig economy companies leading the field on this issue...
Regarding ride-sharing companies, the EFF found:
"We analyzed 10 companies as part of this report. Of them, both Uber and Lyft earned credit in all of the categories we examined. We commend these two companies for their transparency around government access requests, commitments to protecting Fourth Amendment rights in relation to user communications and location data, advocacy on the federal level for user privacy, and commitment to providing users with notice about law enforcement requests. These two companies are setting a strong example for other distributed workforce companies... In contrast, another ride-sharing company, Getaround, received no stars in this year’s report."
The EFF also found improvements by home-sharing companies (links added):
"... FlipKey (owned by TripAdvisor) has adopted several policies related to government access of user data. FlipKey requires a warrant for user content or location data and promises to inform users of law enforcement access requests. It is also a member of the Digital Due Process Coalition, fighting for reform to outdated communications privacy law. Of the home sharing companies we reviewed, FlipKey does the most to stand up for user privacy against government demands.
Only two other companies from our research set earned credit in any categories: Airbnb and Instacart, each earning credit in three categories. Both of these companies require a warrant for content, publish law enforcement guidelines, and are members of the Digital Due Process Coalition..."
"Technology has advanced dramatically since 1986, and ECPA has been outpaced. The statute has not undergone a significant revision since it was enacted in 1986... As a result, ECPA is a patchwork of confusing standards that have been interpreted inconsistently by the courts, creating uncertainty for both service providers and law enforcement agencies. ECPA can no longer be applied in a clear and consistent way, and, consequently, the vast amount of personal information generated by today’s digital communication services may no longer be adequately protected. At the same time, ECPA must be flexible enough to allow law enforcement agencies and services providers to work effectively together..."
DDPC members include Adobe, Airbnb, Amazon.com, Apple, AT&T, Dell, Dropbox, eBay, Facebook, IBM, Intel, Lyft, Reddit, Snapchat, and many more well-known brands.
The EFF report also found (links added):
"... half of the companies we reviewed—Getaround, Postmates, TaskRabbit, Turo, and VRBO—received no credit in any of our categories. This finding is disappointing... most of the companies we analyzed were not yet publishing transparency reports. Only two companies in the field—Lyft and Uber—have published reports outlining how many law enforcement access requests they’ve received. As a result, the general public has little insight into how often the government is pressuring gig economy companies for access to user data. This concerns us, as one way to make surveillance without due process worse is to allow it to happen entirely in secret. Publicizing reports of law enforcement access requests can help illuminate patterns of overzealous policing, shine a light on efforts by companies to resist overly broad requests, and perhaps give pause to law enforcement officials who might otherwise seek to grab more user data than they need..."
Read the 2016 EFF "Who Has Your Back?" executive summary, or the full report (Adobe PDF). Kudos to the EFF for providing a very timely and valuable report. What are your opinions.
If you use Facebook, then you probably know that the social networking site uses a formula, or algorithm to display status messages in users' News Feeds. The site doesn't display all content in your News Feed by your "friends" nor by companies, brands, or groups you follow.
"... we ask thousands of people to rate their experience every day and tell us how we can improve what they see when they check Facebook — we call this our Feed Quality Program... we’ve found that there are stories people don’t like or comment on that they still want to see, such as articles about a serious current event, or sad news from a friend. Based on this finding, we previously updated News Feed’s ranking to factor in how much time you spend reading a post within News Feed, regardless of whether you opened the article... we’re learning that the time people choose to spend reading or watching content they clicked on from News Feed is an important signal that the story was interesting to them. We are adding another factor to News Feed ranking so that we will now predict how long you spend looking at an article in the Facebook mobile browser or an Instant Article after you have clicked through from News Feed. This update to ranking will take into account how likely you are to click on an article and then spend time reading it..."
So, the algorithm now uses time spend reading a post to decide what it thinks will be relevant to you -- and then display that. If you don't spend time reading content from a particular source, then Facebook probably won't display it in your News Feed.
Want to see in your News Feed everything your "friends" posted? You can't. Do your "friends" see everything you posted? Nope. To see everything, you'll have to visit the Timeline for each "friend," business, group, or brand you're connected with. To get around this, some users "tag" their friends in the Comments section of status messages so they don't miss something important.
While the New Hampshire primary and Iowa caucuses have passed, there are many more upcoming primaries this year before the general election in November. These primaries represent data collection opportunities for companies to learn more about voters. Marketplace reported:
"One company is tracking voter characteristics through some likely sources — their phones. Dstillery is a big data intelligence company that sells targeted advertising information about consumers to big companies like Microsoft and Comcast. But in the Iowa primary, the company tried its hand at compiling voter traits... people who loved to grill or work on their lawns overwhelmingly voted for Trump in Iowa... people who watched and supported NASCAR also happened to support Donald Trump and Hillary Clinton..."
Dstillery's has an impressive list of clients: AT&T, Cablevision, Comcast, DirecTV, Hulu, Sprint, T-Mobile, Verizon, Vonage, and many more. If you remember your college statistics classes, then you know that a correlation does not man causation. Things may happen together but it doesn't mean one causes the other. Being a NASCAR fan doesn't mean a voter will vote for certain candidates. Voting for certain candidates does not mean you will be a NASCAR fan.
The data analysis is also pretty easy because many most of you gave your mobile phone numbers to social networking sites so you could use their mobile apps. Both social networking sites and data brokers have two crucial data elements (e.g., your birth date, your phone number) to match, merge, and purge data about you. So, political campaigns (via data brokers and big data intelligence firms they hire) can understand pretty easily who actually voted, and for whom, at a particular voting location.
Is this a good thing? I guess your answer to that depends upon how much privacy you want associated with your voting activity. What you do within the voting booth may be private, but there are many players performing surveillance outside the booth to reveal what you did in the booth. And, if you aren't careful what you say in front of Internet-of-Things devices installed in your home (e.g., toys, smart televisions, smart speakers or search robots, etc.), then the data collection is probably even more extensive.
Today is Safer Internet Day (SID) #SID2016. This event occurs every year in February to promote safer and more responsible use of online technology and mobile phones, especially among children. This year's theme is:
"Play your part for a better Internet"
There are events in 100 countries worldwide. The European Commission’s Safer Internet Programme started the event, which has continued under the Connecting Europe Facility (CEF). This is the 13th annual event. According to its press release:
"Last year’s celebrations saw more than 19,000 schools and 28 million people involved in SID actions across Europe, while over 60 million people were reached worldwide..."
Hans Martens, Digital Citizenship Programme Manager at European Schoolnet and Coordinator of the Insafe Network said:
“The theme of ‘Play your part for a better internet’ truly reflects how stakeholders from across the world can and should work together to build a trusted digital environment for all. This approach is at the core of the Better Internet for Kids agenda, and we look forward to seeing many exciting onitiatives and collaborations, both on the day of SID itself and beyond."
Recently, a friend posted this message on Facebook:
"I need advice. I looked in my Facebook notifications and received a notification that someone I don't even know shared my post. I looked at the post on this person's timeline and it has a picture of my female cousin and it has me tagged with her and a caption that she is my wifey with a little wedding ring icon. What??!! What's going on?"
My response with advice:
Review your list of friends and delete people you don't know,
Review the privacy settings on your account. You can set them to provide notice when anyone tags you in a photo. Along with that notice you can approve or decline each photo-tag request,
Go to the existing, offending photos and remove that tag with your name,
Contact offline the person that tagged you in the photo to verify that it was indeed that person. Sometimes, spammers or criminals create bogus accounts pretending to be a friend so they can access your account and steal personal information.
When you contact that person offline, you can ask them not to tag you in any future photos. You have that right. It's your image. If he/she complies, fine. If not, delete them from your friends list,
Make sure all of your posts have the "Friends Only" setting. Facebook will often inherit the "Public" setting on re-posts, which opens you to spammers, criminals, and trolls,
Don't accept new Friend Requests from people you don't know. Finally,
Realize that your information on Facebook is only secure as your friend with the weakest security settings in his/her profile, or none. Those persons probably violate #6.
So, maintaining a presence with privacy on social networking sites requires diligence. If you're not up to the task or don't want to do it, then don't join that social networking site (or delete your account on an existing site). What would you recommend?
At a recent cyber-security conference at New York University, a MasterCard executive raised concerns about the WiFi-enabled Barbie doll. The New York Post newspaper reported:
"The chief executive of MasterCard on Friday singled out the $75 Mattel doll as a security threat — the second time the tech-smart Barbie has run into trouble. Ajay Banga said hackers can gain control of Barbie’s voice and then “talk” to a child. The hackers can then win the confidence of the kid and, under certain circumstance, attempt to gain access to your home..."
Regular readers of this blog are familiar with the security issues from Internet-connected toys, such as this doll, which also contain a voice-recognition interfaces. As Banga accurately emphasized, a criminal can hack the toy and ask the child what valuables the family owns, plus when the home will be vacant. Adolescents and toddlers are too young to understand security concepts, what not to disclose to strangers, and when a toy asks inappropriate questions.
Think of it this way, criminals regularly use phone spam to trick adults into revealing sensitive personal and financial information. It would probably be easier to trick young children. With Internet-connected devices in homes, criminals can easily bypass do-not-call registries.
Banga also mentioned that MasterCard is a favorite target of hackers, with 15,000 attempted hacks daily. That reinforces the observation that criminals go where the money is. The newspaper also reported:
"Several of the most prominent names in cybersecurity said during the conference that most people aren’t aware of the growing number of cybersecurity threats that they’re exposed to as manufacturers keep making products that hook up to the Internet. One of the biggest vulnerabilities is the so-called “Internet of things” — everything from TVs to refrigerators to vending machines that automatically connect to the Internet, and then transmit data to another source."
This time, the unannounced test included Android app users where Facebook intentionally crashed their apps. Forbes magazine reported:
"Facebook conducted secret tests to determine the magnitude of its Android users’ Facebook addiction, according to a new report published yesterday. Like a bunch of crash test dummies, users of the Facebook app for Android were (several years ago) subject to intentional Facebook for Android app crashes without being informed of the tests. These tests were reportedly conducted so Facebook could determine user resilience to app deprivation–that is, whether users would find ways to use Facebook on their Android devices without the Google Play store app..."
Supposedly, Facebook wanted to know if those Android app users would get replacement apps from other sources, or use the browser interface. Reportedly, Facebook has one billion Android app users. The news article didn't say whether Facebook performed similar tests on Apple iPhone app users. It seems wise to assume so.
The news report didn't mention whether Facebook slowed or manipulated the browser interface to see if users would switch to one of its mobile apps. It seems wise to assume so.
What are your opinions of the secret tests? Is this an acceptable "cost" for a service that promises to remain free?
If you use Facebook, then you've probably seen the quizzes. There are dozens of them, and they are popular. You can easily spot them because they have similar titles: "What [blank] are you?" or "Analyze Your [blank]." Invariably, the quizzes collect your personal information, and often that of people you are connected with.
How accurate are these quizzes? Below is a clue, including the results after a user submitted their (unique) profile photo for analysis:
A security researcher found online a database containing the sensitive information of customers of the Hello Kitty gaming site. Just before the Christmas holiday, C|Net reported:
"Personal information for fans who connect through SanrioTown.com has been sitting openly viewable on the Internet and easily accessible with the click of a mouse, no hack required... SanrioTown.com, designed for fans of Sanrio characters like Hello Kitty, hosts all the accounts for players of a popular game called Hello Kitty Online."
C|Net also reported that the security researcher:
"... showed CNET a sample of the records he saw, which includes a list of usernames, scrambled up passwords, first and last names, genders, birth dates and answers to security questions like "What is your favorite food." In the random sample of 15 records, two appeared to be of minors. Sanrio declined to verify whether the data listed in the sample was from its database. Vickery found the database, he said, while looking for unprotected information on the Internet by searching a website that can find data stored in the cloud."
"Sanrio Digital, a subsidiary of the Japanese owner of “Hello Kitty,” a popular children’s brand, told Reuters on Tuesday that it patched a security glitch that had affected one of its databases being tipped off by Chris Vickery, a U.S.-based researcher who helps identify and fix vulnerable computer systems... Sanrio has insisted that evidence has so far failed to suggest that anyone other than Mr. Vickery had accessed the database with authorization..."
Reportedly, the breach exposed the following data elements: full names, birthdays, genders, email addresses and related information about 3.3 million account holders. That included information about 186,261 persons under the age of 18. Payment information (e.g., credit cards) was not exposed, according to the SanrioTown security statement.
Two items about this breach need to be highlighted:
The operative phrase in the company's statement is, "that evidence so far..." More evidence may surface later; and
The company did not discover its own database sitting open, unprotected in the wild. An external security researcher found it. That fact does not bode well for the company's security team and data security processes.
"The company, which sells weight-loss products, argues in court papers filed earlier this month that the FTC lacks the power "to dictate the terms of private contracts between private parties." The company adds: "The FTC’s intention to ban all manner of anti disparagement clauses is overkill and appears to be a knee-jerk reaction to a particular practice of Roca Labs. ...The regulation of public comment through on-line reviews is a complicated and multi-faceted problem that must balance the rights of consumers and businesses in the ever-changing landscape of internet commerce." Roca filed its papers in response to the FTC's request for an injunction..."
Last Thursday, U.S. District Court Judge Mary Scriven in Florida issued an order granting the FTC's preliminary injunction to stop Roca labs from silencing customers' online reviews. Yelp and other review sites sided with the FTC in a friend-of-court brief.Some reviewers posted information about the FTC complaint on the Roca Labs page within the Yelp site.
For review sites to be trustworthy, they must include positive, negative, and neutral reviews of products and services. What are your opinions of gag clauses?