Wednesday 11 April 2018

Almost right from its very beginning Facebook Inc was not the benign Internet presence it pretended to be


Facebook Inc. - incorporated in July 2004 and headquartered at 1 Hacker Way (so named by Facebook management), Menlo Park, California 94025 - has at least twelve data centres around the world which collect, transmit, collate, store and monetise data drawn from an est. 2 billion active Facebook accounts. 

In May 2017 this social media company was worth est. US$407.3 billion according to Forbes.com.

Now that the social media giant finds itself being officially investigated to varying degrees by the United Kingdom, Australia and the United States on matters of user data collection, data retention, privacy and safety - as well as being the object of a number of lawsuits - here is a timeline indicating how Mark Zuckerberg brought Facebook to this low point......


FACEBOOK INC
2005

Facebook Privacy Policy states that Thefacebook takes appropriate precautions to protect our users' information. Your account information is located on a secured server behind a firewall. However it also states When you visit the Web Site you may provide us with two types of information: personal information you knowingly choose to disclose that is collected by us and Web Site use information collected by us on an aggregate basis as you and others browse our Web Site.
When you register on the Web Site, you provide us with certain personal information, such as your name, your email address, your telephone number, your address, your gender, schools attended and any other personal or preference information that you provide to us.
When you enter our Web Site, we collect the user's browser type and IP address. This information is gathered for all users to the Web Site. In addition, we store certain information from your browser using "cookies." A cookie is a piece of data stored on the user's computer tied to information about the user. We use session ID cookies to confirm that users are logged in. These cookies terminate once the users close the browser. We do not use cookies to collect private information from any user.
Thefacebook also collects information about you from other sources, such as newspapers and instant messaging services. This information is gathered regardless of your use of the Web Site. 

2006

Facebook’s privacy policy is now expressing this sentiment; We understand you may not want everyone in the world to have the information you share on Facebook; that is why we give you control of your information. Our default privacy settings limit the information displayed in your profile to your school, your specified local area, and other reasonable community limitations that we tell you about….

However the company is still collecting as much information about Facebook users that it can, as well as informing account holders that; Facebook may also collect information about you from other sources, such as newspapers, blogs, instant messaging services, and other users of the Facebook service through the operation of the service (e.g., photo tags) in order to provide you with more useful information and a more personalized experience. By using Facebook, you are consenting to have your personal data transferred to and processed in the United States.

2007

Facebook Platform  - app developers can now access the “’social graph’ ie., tracked connections between users and their friends.

Beacon - shares what users are doing on other websites with their Facebook friends without specific consent.

2008

Facebook Connect - corrects Beacon’s mistakes by requiring users to take deliberate action before they share activity from other websites when logged in using Facebook.

2009


Beacon officially shut down after at least one lawsuit commenced over privacy issue.

Facebook hosts the Farmville game which was later revealed as a data miner.

2010

Facebook’s privacy policy states; When you connect with an application or website it will have access to General Information about you. The term General Information includes your and your friends’ names, profile pictures, gender, user IDs, connections, and any content shared using the Everyone privacy setting. ... The default privacy setting for certain types of information you post on Facebook is set to “everyone.” ... Because it takes two to connect, your privacy settings only control who can see the connection on your profile page. If you are uncomfortable with the connection being publicly available, you should consider removing (or not making) the connection.

On 28 April 2010 Electronic Frontiers Foundation reported that: Facebook announced a plan to transform most of the bits in your profile (including your hometown, education, work, activities, interests, and more) into connections, which are public information. If you refuse to make these items into a Connection, Facebook will remove all unlinked information.

2011

Social reporting tool – allows Facebook users to directly contact other users to request a post or image takedown if either relates directly to them. Any takedown is voluntary if content doesn't breach Facebook rules.

Facebook Inc initially refuses to take down a defamatory site invading the privacy of Clarence Valley highschool students. It only does so after direct pressure is applied by a community member.

2012

In February the Parliament of Australia invites the Australian public to connect with it via Facebook.

Facebook begins roll out Facebook Camera for iOS to English-speaking countries - a standalone photos app where users can shoot, filter, and share single or sets of photos and scroll through a feed of photos uploaded to Facebook by friends.


2013

Facebook begins collaboration with Dr. Alexandr Kogan eventually supplying him with data on 57 million Facebook friendships by 2015. User data supplied to Kogan for his research was later sent to Cambridge Analytica without Facebook users knowledge or consent.

Facebook hosts Hangouts - live video.

2014

Facebook Groups - app for iOS and Android introduced and then deleted some months later.

Facebook buys WhatsAppMessaging.

Facebook conducts a number of psychological experiments on users without their knowledge or consent. It is reported that 689,000 users had their home pages manipulated.


2015

Security Checkup - new tool to simplifying privacy controls.

Head of Research at Facebook Inc, Peter Fleming, and one of the company’s  contract researchers are listed as co-authors of Alexander Kogan’s published research on the relationship of social class and international friendships. 


2016


2017

Privacy Basics - new tool to simplify privacy controls.

Becomes public knowledge that Facebook revealed to one Australian advertiser that it had a database of young users – 1.9 million high schoolers, 1.5 million tertiary students and 3 million young workers – and that it could tell advertisers when young workers were particularly vulnerable.

Facebook reported to be planning $750 million data center in New Albany, Ohio employing only 50 permanent staff.

Facebook admits to US Securities and Exchange Commission that 1.5% of its 2.01 billion accounts worldwide are “undesirable” - that is likely to be fake accounts. Yahoo Finance calculates that to be upwards of 30 million accounts.

In December Germany’s Federal Cartel Office released preliminary investigation findings and stated: The Bundeskartellamt has informed the company Facebook in writing of its preliminary legal assessment in the abuse of dominance proceeding which the authority is conducting against Facebook. Based on the current stage of the proceedings, the authority assumes that Facebook is dominant on the German market for social networks. The authority holds the view that Facebook is abusing this dominant position by making the use of its social network conditional on its being allowed to limitlessly amass every kind of data generated by using third-party websites and merge it with the user's Facebook account. These third-party sites include firstly services owned by Facebook such as WhatsApp or Instagram, and secondly websites and apps of other operators with embedded Facebook APIs.

Google search engines now host multiple Facebook apps.

By 2017 numerous government departments and agencies in Australia have Facebook accounts, from which the company can harvest visitor data whether or not the visitor has a Facebook account.

Included on the long list of government departments/agencies is the federal Dept. of Human Services (DHS)DHS states that it posts on its Facebook page about payments and services, answers questions, gives useful tips, shares news, and give updates on relevant issues. This means that anyone who visits or interacts with the five DHS Facebook pages will have their Internet usage data scraped, information contained in any questions asked retained and collated with any other information Facebook holds on that visitor. DHS appears to be aware of privacy vulnerabilities in its use of Facebook as it is at pains to point out that The department is not responsible for the privacy practices or content of Facebook.......

Australian federal and state electoral commissions also have active Facebook pages.

In December 2017 Facebook rolled out Messenger Kids app which is installed via an adult's Facebook account. This app offers video and text chats for children using their own digital devices. Although Messenger Kids displays no ads it does not appear to be exempt from Facebook's user data collection.

Facebook Inc initially refuses to remove a scam account attempting to raise money and only does so after media pressure

2018

On 16 March Facebook Inc. announces it has suspended the accounts of Aleksandr Kogan, Cambridge Analytica and Strategic Communication Laboratries Group on the basis they had misused Facebook user data,  

In late March it was revealed that Facebook's Android app is capable of hoovering up extensive call data without users knowledge or consent.

Facebook-created VR app like Spaces obtain information about what users doing there, much in the same way that any third-party app developer would. Facebook also records a “heatmap” of viewer data for 360-degree videos, for instance, flagging which parts of a video people find most interesting.

Facebook admits that it archived unpublished and deleted user videos created using a now redundant video streaming function. 

Facebook Inc. admits that up to 87 million account holders may have had their personal information accessed by the Trump presidential campaign-linked data miner Cambridge Analytica. Either because  Facebook users accessed the thisisyourdigitallife app or because they had friended a person had done so.

Only 53 Australian Facebook users took the thisisyourdigitallife personality quiz but the app hoovered up the data on est 311,127 other users included in friendship lists once it accessed those 53 accounts. Just 10 New Zealanders used the app but data from another est. 67,000 users was collected via their friendship groups.

Facebook also admits that its software allowed reverse searching of its user pages employing only ‘phone numbers and email addresses and that “malicious actors” may have used this feature to scrap public profile data from most of its 2 billion users.

The company admits that its account recovery process can also allow these malicious actors to access user data.


In April Facebook announces a tightening of its privacy controls and states it intends to police all third party requests for access to user data. Given the company stated it had in total 215,000 staff worldwide as of December 2017 and, not all those staff would be available to personally monitor third party requests relating to Facebook’s est. 2 billion active monthly users, one wonders just how reliable this latest ‘promise’ from Facebook Inc. will be.

On 4 April 2018 USA Today reported that: Members of the House and Senate committees that will question Facebook CEO Mark Zuckerberg about user privacy protection next week are also some of the biggest recipients of campaign contributions from company employees and the Facebook Inc. PAC.
The committee that got the most Facebook contributions is the House Energy and Commerce Committee, which announced Wednesday morning it would question Zuckerberg on April 11.

Open Secrets lists Facebook Inc PAC contributions to 2016 U.S. federal election campaigns:
Contributions from this PAC to federal candidates (list recipients)
(44% to Democrats, 55% to Republicans)
$519,500
Contributions to this PAC from individual donors of $200 or more (list donors)
 $619,240

In April Facebook admits that it has entered an unspecified number of the 1.3 billion 
Messenger accounts and, without users knowledge or consent, selectively removed messages sent to those users by Mark Zuckerberg and other unnamed Facebook Inc executives/employees

Australian Privacy Commissioner launches investigation into Facebook Inc.

Five U.S. state attorneys-general reported to have begun investigations into how Facebook Inc. collects, shares and does or doesn't protect user information.

According to the Insurance Journal on 5 April 2018: Users and investors have filed at least 18 lawsuits since last month’s revelations about Cambridge Analytica. Beyond privacy violations, they are accusing Facebook of user agreement breaches, negligence, consumer fraud, unfair competition, securities fraud and racketeering.

On 6 April Facebook Inc annouces that it has suspended the account of Canadian tech company AggregateIQ because of its involvenment in the Cambridge Analytica scandal and three days later suspends CubeYou on similar grounds while it investigates.

On 9 April TNW reports that Facebook's cryptocurrency ad filter failed.

The Washington Post  reported on 9 April:
As for Facebook itself, former FBI special agent Clinton Watts told me that, in one sense, the numbers should not be surprising since “everyone has a message to get out, and Facebook is the best place to do it. Russia, Cambridge Analytica or any campaign for that matter has to go to social media to be effective.” The problem arose in Facebook’s mode of operating. “Their motto was move fast and break things, and they did, they moved fast and in the end broke the trust of their users with the platform,” Watts said. “They didn’t do solid assessments of who was accessing data on their platforms, and they didn’t effectively scrutinize advertisements and accounts surfacing on their platforms.”

By 10 April it was being reported that a number of Facebook IT engineers were quitting or asking to change departments over ethical concerns.

On 11 April 2018 Facebook Inc. founder, CEO and controlling shareholder, 33 year-old Mark Elliot Zuckerberg appears before the US House of Representatives House Energy and Commerce Committee's Facebook: Transparency and Use of Consumer Data hearing.

The day before Zuckerberg fronted the Senate Committee on the Judiciary, Senate Committee on Commerce, Science, and Transportation’s  Facebook, Social Media Privacy, and the Use and Abuse of Data hearing.

Despite all of the above, as of 11 April 2018 the Australian Government Dept of Human Services retains its "Humans Services", "Student Update", "Families Update" and "Seniors Update" Facebook pages and, the departmental website still links to "How to 'Like' " instructions and shows visitors how to set up their own Facebook account with a link to its very own 'how to' YouTube video. Cenrelink's General Manager also still has an official Facebook account.

Note:
Given the federal Department of Human Services admitted that it had employed third parties to monitor social media including Facebook for information about welfare recipients that it could match with internal departmental data, one has to wonder what range of methods were used to undertake this surveillance and exactly who the contractors were.

It seems climate change deniers may be looking to that far-right lobby group the Insitute of Public Affairs (IPA) to organise defence fund appeals in the future




For more than a decade, Ridd [Peter Vincent Ridd] has been happily criticising the science linking dangerous climate change to greenhouse gas emissions and the science showing the impacts of humans on corals.

Ridd has also repeatedly, over many years, said that the impact of agricultural runoff and water quality on the health and growth rate of corals is overstated.

But his employer, James Cook University, initiated its own action against Ridd after he had criticised specific organisations at his own university in media interviews, saying they could not be trusted. This, the university alleged, went against the university’s code of conduct.

So this is not about Ridd’s “freedom” to say what he wants but is about an alleged breach of the university’s code of conduct — whether you agree with that code or not.

When the university censured Ridd in 2016, he ignored them. He gave an interview in August 2017 to another climate science denier, Alan Jones, on Sky News. Ridd was there to talk about his chapter in a climate science denial book produced by the Institute of Public Affairs (IPA).

Ridd said 'we can no longer trust' the Government-backed Australian Institute of Marine Scienceand the Center of Excellence for Coral Reef Studies, based at James Cook University…..

The university alleged this constituted further “serious misconduct”, so Ridd took the issue to his lawyers and a case is proceeding.

To help fund his legal bills, Ridd got some help from the IPA (a key organisation pushing climate science denial in Australia for two decades) to set up a crowdfunding campaign that raised the necessary $95,000 in just 49 hours.

The IPA’s executive director John Roskam was the first donor with $500. Other notable givers included climate science denier and blogger Anthony WattsU.S. Interior Department employee and climate science denier Indur Goklany, Perth philanthropist and IPA funder Bryant Macfie and author and political scientist Don AitkenThe Washington Post and others have also reported how Goklany has had a key role in re-writing Department of Interior climate documents.

Many of Ridd’s cheerleaders have taken his scientific claims without scepticism and have not entertained the idea that he might be wrong.

Ridd’s marine pollution?

But Ridd repeated in detail several of his criticisms in a November 2017 "viewpoint" article in the journal Marine Pollution Bulletin — opening up his arguments for scrutiny.

Now, as reported in The Guardian Australia, a team of nine scientists, many based at the Australian Institute of Marine Science and the James Cook University centre Ridd has attacked, have issued a response through the same journal. Their assessment of Ridd’s claims is sharp.

They say Ridd’s criticisms are based on 'misinterpretation, selective use of data and over-simplification' and that they ignore 'formal responses to previously published critiques'.

Tuesday 10 April 2018

Big banks get hammered in first round of Banking Royal Commission hearings


I am sure that the Turnbull Coalition Government was hoping that voters would not form opinions such as this when it set up the deliberately ‘hobbled’ Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

O’Brien Solicitors, blog post, 5 April 2018:

First Round of Banking Royal Commission Reveals Systemic Issues in the Banking Industry

Customers are falling victim to the misconduct of banks with evidence being presented at the Banking Royal Commission (BRC) of fraudulent conduct, approval of inappropriate loans and excessive interest rates. The first round of public hearings have finished with the big four banks (NAB, Westpac, ANZ and CBA) being scrutinised by the Commission over its inappropriate behaviour.

The big banks get hammered in first round of BRC hearings

NAB’s employee incentive scheme saw fraudulent conduct by its bankers making unsuitable loans, the dishonest use of customer signatures, and false documentation being provided to support loan applications. Even worse, staff in some branches accepted bribes to facilitate loans they knew were based on fraudulent documents. Whistleblowers called out the fraud, but the bank did not notify the regulator until months after they were required to.

The Commonwealth Bank of Australia has also been criticised for its brokers fees and commissions for home loans and associated CBA insurance products that customers purchased. Brokers failed to clearly disclose upfront, on-going fees and incentives to stop people paying off their mortgages sooner. CBA was also under fire after they admitted to waiting two years before reporting a problem with their personal loan insurance program that affected over 20,000 customers.

ANZ have also been scrutinised with the bank failing to check customers’ expenses before approving them for a home loan. Their car finance business, Esanda, was also found to have been undertaking dodgy practices before it was sold in October 2015. This included the inappropriate use of customer’s financial information and increasing interest rates for better commissions.

It was found that Westpac also had its own dodgy practices. Similar to the other banks, the commissions attached to Westpac employees’ approval of car loans has caused issues of inappropriate loans being made. It has also been found that the bank increased credit card limits without checking customer’s current employment status.

Systemic change required in the banking industry

It is clear that there is a lack of accountability mechanisms and internal controls to manage potential conflicts of interest and the detection of fraud within banks. Commission based incentive programs have resulted in the approval of inappropriate loans and fraudulent conduct. Customers are falling victim to greedy banks with higher interest rates and the misuse of their personal information. It is only now that the banks have been caught out that they are apologetic and pledging to change their practices. It is unacceptable that this has been occurring on a consistent basis throughout all banks, and requires a systemic change to be made in the banking industry.

The findings during the Banking Royal Commission’s first hearing indicate two key things. Firstly, commissions and employee incentives are a key contributor to misconduct. This needs to be regulated in some way. Customers should enquire about commissions and any associated fees before purchasing any banking services. Secondly, the industry regulator ASIC needs to implement proactive measures to monitor the practices of financial institutions. Many of the reported cases of misconduct were only made aware to the regulator years after, or even swept completely under the rug. They need to be prevented from occurring in the first place.

While this from the Australian Transactions Reports & Analysis Centre (AUSTRAC) CEO Nicole Rose via ABC News on 5 April 2018 would have been as welcome as seven day old fish heads in the prime ministerial letter box:

Australia's financial intelligence czar Nicole Rose says she is shocked at the depth of money laundering in the economy involving organised crime, child exploitation and drug importation.

"I thought coming from the Australian Criminal Intelligence Commission that I had a pretty good handle on serious and organised crime," she told the ABC's AM program.

"I didn't appreciate the depth and breadth of involvement with private entities and banks. I didn't appreciate how many industries it does actually touch.

"There's a misperception that money laundering is a victimless white collar crime that's probably just looking at tax avoidance.

"It has a massive impact on everyday life whether that's child exploitation, serious and organised crime or drug importation. It all involves money laundering." [my yellow highlighting]

In December 2017 AUSTRAC filed a further 100 alleged contraventions against the Commonwealth Bank amending the statement of claim in the current civil penalty proceedings:

AUSTRAC CEO, Nicole Rose PSM, said that the additional alleged contraventions were identified after the civil penalty proceedings were instituted through AUSTRAC’s ongoing investigation into CBA.

‘These allegations are very serious and reflect systemic non-compliance over approximately six years’, Ms Rose said.

AUSTRAC now alleges over 53,800 contraventions of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. 

Financial Review, 9 April 2018:

The financial intelligence regulator AUSTRAC has stolen the spotlight from Commonwealth Bank CEO Matt Comyn on his first day in the top job with allegations that the bank broke the law by knowingly opening transaction accounts for customers it had reasons to suspect of money laundering.

Among the transactions AUSTRAC says the bank ought to have known, or at least suspected, were not legitimate was $250,000 deposited by an Iranian salesman and a second unemployed customer and a $150,000 deposit made through a Russian Bank from company located in a known tax haven.

AUSTRAC's reply yesterday to CBA's defence of the money laundering allegations made it difficult for Mr Comyn to clear the air as he promised the bank would be more accountable and more transparent under his leadership…..

"We have been too slow to fix mistakes and we have failed to meet some important regulatory and compliance obligations. This is unacceptable," Mr Comyn said in a reference to the bank's fraught dealings with regulators including AUSTRAC, ASIC and APRA.

By late morning, however, AUSTRAC's new claims showed that the two parties were some way from settling the issue the bank has set aside $375 million to resolve, which relates to the regulator's claims it has repeatedly breached transaction reporting requirements.

"CommBank suspected on reasonable grounds that the opening of CommBank Accounts 78,79, 81, 82 and 84 were 'specifically generated for the purpose of laundering money'," AUSTRAC said yesterday.

"Commbank's failure to give the AUSTRAC CEO an SMR (suspicious matter report) in respect of its suspicion ... constitutes a contravention of Section 41 (2) of the Act."

The five accounts formed part of a group of seven that had $1.7 million deposited in them over four years. Among those to open and make deposits in some of those accounts were money launderers known as Person 66 and Person 67.

So many Newspoll losses mean democratic processes at risk as Turnbull Government strives to claw back political ground


“The Coalition now trails Labor by 47.5 per cent to 52.5 per cent in two-party terms across the four polls. This reflects a 48:52 result from Fairfax/Ipsos, the same from Newspoll, the same from Essential and a 46:54 result from ReachTel on March 29.” [The Sydney Morning Herald, 9 April 2016]

From May 2014 to September 2015 the Abbott Coalition Government experienced 30 consecutive negative Newspoll federal voting intentions opinion polls*.

After the sacking of Tony Abbott by his party and the installation of Malcolm Turnbull as prime minister the Turnbull Coalition Government saw 12 positive Newspolls before this second rendition of a Coalition federal government itself experienced 30 consecutive negative Newspolls from 12 September 2016 to 9 April 2018.

This polling history indicates that the Liberal-National federal government is likely to have only had the national electorate’s approval for around ten of the last thirty-seven calendar months.

According to the Australian Electoral Commission; As House of Representatives and half-Senate elections are usually held simultaneously, the earliest date for such an election would be Saturday 4 August 2018. As the latest possible date for a half-Senate election is Saturday 18 May 2019, the latest possible date for a simultaneous (half-Senate and House of Representatives) election is also Saturday 18 May 2019.

Given that (i) between them the Abbott and Turnbull governments have experienced  experienced only 12 positive polls in the last 68 Newspolls; and (ii) the Liberal Party has already admitted that during its successful March 2018 South Australian election it had utilised the services of one of the known “bad actors” on  the international election campaign consultancy scene, the US-based data miner i360; it is highly likely that “bad actors” will be employed once more and over the next four to thirteen months voters will be subjected to a barrage of misinformation, bald lies, vicious rumour and false promises from both Coalition politicians and their supporters in mainstream and social media.

Voters will have to fact check what they hear and read as never before.

* A federal voting intentions Newspoll is considered negative for one or other of the two main political parties based on two party preferred percentage results
Newspolls surveys normally occur every two to three weeks outside of election campaign periods when they are likely to occur more often.
Newspoll results can be found at https://www.theaustralian.com.au/national-affairs/newspoll.

Monday 9 April 2018

Donald Trump's callous disregard for the reality of this situation knows no bounds



Trump Tower is a 58 story building containing a mix of residential apartments, business premises, retail stores and restaurants in mid-town Manhattan, New York.

The thirty-four year old building has been the site of two fires this year.

None of the 238 apartments on the 38 residential floors below the three-story Trump penthouse have sprinkler systems installed.


On 8 April 2018 US President Donald Trump tweeted this ……




By the time that tweet was sent the man who died in the fire had been dead at least tweve hours.