Facebook to pay a whopping $5 billion penalty in final settlement with FTC

Agencies
July 24, 2019

Jul 2: The Federal Trade Commission (FTC) has officially penalized Facebook a groundbreaking $5 billion, the largest in FTC history.

According to a Wednesday press release from the FTC, the social network giant will also have to submit to new restrictions, as well as a modified corporate structure that will hold the company accountable for decisions made about users’ privacy.

“Despite repeated promises to its billions of users worldwide that they could control how their personal information is shared, Facebook undermined consumers’ choices,” said FTC Chairman Joe Simons in the press release. “The magnitude of the $5 billion penalty and sweeping conduct relief are unprecedented in the history of the FTC. The relief is designed not only to punish future violations but, more importantly, to change Facebook’s entire privacy culture to decrease the likelihood of continued violations. The Commission takes consumer privacy seriously, and will enforce FTC orders to the fullest extent of the law.”

Additionally, the order imposes further privacy requirements. These include greater oversight over third-party apps, prohibiting the use of telephone numbers to enable a security feature,  providing clear and conspicuous notice of the use of facial recognition and user consent for this feature, the establishment of a data security program, prohibiting the company from asking for email passwords from new users to other services, and encryption of passwords.

This settlement is a result of violations Facebook made from a previous settlement with the FTC in 2012. Among these violations, the FTC alleges that Facebook shared user data with third-party app developers, misrepresented users’ ability to control the use of facial recognition and used deceptive practices when collecting users phone numbers for a security feature, which includes advertising purposes.

Facebook will be required to designate compliance officers who will be responsible for the new privacy program. The social network will also have to implement an independent privacy committee of Facebook’s board of directors, which will be charged with creating greater accountability. These new compliance officers will create quarterly reports which will be shared with Facebook CEO Mark Zuckerberg and the FTC.

What’s groundbreaking about this settlement is that it is almost 20 times greater than the world’s largest privacy/data security penalty to date. According to the press release, the second-highest penalty in privacy enforcement actions was issued in the case of the Consumer Financial Protection Bureau (CFPB) and States v. Equifax, which was $275 million.

“This settlement’s historic penalty and compliance terms will benefit American consumers, and the Department expects Facebook to treat its privacy obligations with the utmost seriousness,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division in the FTC’s press release.

Digital Trends reached out to Facebook for comment, but has yet to receive a response.

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Agencies
March 16,2020

While Google is still working on a coronavirus screening and tracking website, Microsoft Bing team has already launched a web portal for tracking COVID-19 infections worldwide.

The website, accessible at bing.com/covid, provides up-to-date infection statistics for each country.

The COVID-19 Tracker currently lists 168,835 as total confirmed cases, 84,558 active cases, 77,761 recovered cases and 6,516 deaths.

There are at least 3,244 confirmed cases of novel coronavirus in the US and at least 61 deaths.

"Lots of Bing folks worked (from home) this past week to create a mapping and authoritative news resource for COVID19 info," Michael Schechter, General Manager for Bing Growth and Distribution at Microsoft, was quoted as saying in a ZDNet report on Sunday.

An interactive map allows site visitors to click on the country to see the specific number of cases and related articles from a variety of publishers.

Data is being aggregated from sources like the World Health Organization (WHO), the US Centers for Disease Control and Prevention (CDC), and the European Centre for Disease Prevention and Control (ECDC).

Microsoft announced the website two days after US President Donald Trump said Google has begun working on COVID-19-related portal for US citizens.

Google's website is being built by Verily, a subsidiary of Alphabet focused on healthcare services.

"More than 1,700 engineers are currently working on the site", Trump said during a press briefing last week.

The tool will triage people who are concerned about their COVID-19 risk into testing sites based on guidance from public health officials and test availability.

Initially, there was some confusion on Google's coronavirus portal but the company later announced that it is "partnering with the US Government in developing a nationwide website that includes information about COVID-19 symptoms, risk, and testing information."

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Agencies
June 27,2020

Mumbai, Jun 27: The Bombay High Court observed that COVID-19 patients from poor and indigent sections cannot be expected to produce documentary proof to avail subsidised or free treatment while getting admitted to hospitals.

The court on Friday was hearing a plea filed by seven residents of a slum rehabilitation building in Bandra, who had been charged ₹ 12.5 lakh by K J Somaiya Hospital for COVID-19 treatment between April 11 and April 28.

The bench of Justices Ramesh Dhanuka and Madhav Jamdar directed the hospital to deposit ₹10 lakh in the court.

The petitioners had borrowed money and managed to pay ₹10 lakh out of ₹12.5 lakh that the hospital had demanded, after threatening to halt their discharge if they failed to clear the bill, counsel Vivek Shukla informed the court.

According to the plea, the petitioners were also overcharged for PPE kits and unused services.

On June 13, the court had directed the state charity commissioner to probe if the hospital had reserved 20% beds for poor and indigent patients and provided free or subsidised treatment to them.

Last week, the joint charity commissioner had informed the court that although the hospital had reserved such beds, it had treated only three poor or indigent persons since the lockdown.

It was unfathomable that the hospital that claimed to have reserved 90 beds for poor and indigent patients had treated only three such persons during the pandemic, advocate Shukla said.

He further argued that COVID-19 patients, who are in distress, cannot be expected to produce income certificate and such documents as proof.

However, senior advocate Janak Dwarkadas, who represented the hospital, said the petitioners did not belong to economically weak or indigent categories and had not produced documents to prove the same.

A person who is suffering from a disease like COVID-19 cannot be expected to produce certificates from a tehsildar or social welfare officer before seeking admission in the hospital, the bench noted and asked the hospital to deposit ₹10 lakh in court within two weeks.

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Agencies
May 19,2020

Cybersecurity researchers on Monday warned of a Trojan malware campaign which is targeting India's co-operative banks using COVID-19 as a bait.

Seqrite, the enterprise arm of IT security firm Quick Heal Technologies, detected the new wave of Adwind Java Remote Access Trojan (RAT) campaign.

Researchers at Seqrite warned that if attackers are successful, they can take over the victim's device to steal sensitive data like SWIFT logins and customer details and move laterally to launch large scale cyberattacks and financial frauds.

According to the researchers, the Java RAT campaign starts with a spear-phishing email which claims to have originated from either the Reserve Bank of India or a nationalised bank.

The content of the email refers to COVID-19 guidelines or a financial transaction, with detailed information in an attachment, which is a zip file containing a JAR based malware.

Upon further investigation, researchers at Seqrite found that the JAR based malware is a Remote Access Trojan that can run on any machine which has Java runtime enabled and hence it can impact a variety of endpoints, irrespective of their base operating system.

Once the RAT is installed, the attacker can take over the victim's device, send commands from a remote machine, and spread laterally in the network.

In addition, this malware can also log keystrokes, capture screenshots, download additional payloads, and extract sensitive user information, Seqrite said, adding that such attack campaigns can effectively jeopardise the privacy and security of sensitive data at the co-operative banks and result in large scale attacks and financial frauds.

To prevent such attacks, users need to exercise ample caution and avoid opening attachments and clicking on web links in unsolicited emails.

Banks should also keep their operating systems updated and have a full-fledged security solution installed on all the devices, Seqrite advised.

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