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Social networking phenomenon Facebook has beaten out arch-rival and former market leader MySpace by most measures of popularity, except the one that pays the bills. While Facebook has outpaced MySpace in bringing in members - it has 175 million active users at the latest count, compared with around 130 million for MySpace - it has struggled make money from them. While MySpace is closing in on $1 billion in revenues, Facebook generated less than $300 million in sales last year, reports say. Indeed, Facebook's efforts to drum up revenue have led to it repeatedly becoming the target of some of the biggest online privacy protests on the Web. Its most recent fight earlier this month followed Facebook's attempt to redefine its own rules and assert ownership over anything its members posted on the site. The company has since backed off and is rethinking its policies. Why hasn't Facebook benefited from the vaunted "network effect" that makes such services more valuable the more its adds members and connections between them? After all, Facebook is spreading quickly in nearly 100 languages, while MySpace has focused on the United States and five other markets where Web advertising flourishes. The answer may lie in the origins of the five-year-old site started by then Harvard University student Mark Zuckerberg. Its appeal at the outset was that it was a place where users could share tidbits of their personal lives with selected friends and acquaintances. This blurred the distinction between a private space and a public one. MySpace is more explicitly a public place where friends hang out in the equivalent of a cafe or a club and the aim is often to meet new people. Most of all, MySpace is a place to share music with other fans.

Guess what? That unlocked rant you put on your MySpace profile is open to the public and can be seen by anyone with a computer. Imagine that! Cynthia Moreno learned this the hard way. A judge ruled earlier this month that it was not an invasion of her privacy when a local newspaper published a rant pulled from her MySpace blog. After a visit to her hometown of Coalinga, Calif., college student Moreno penned a 700-word blog entry titled "An Ode to Coalinga" that opened with "the older I get, the more I realize how much I despise Coalinga." Moreno subsequently deleted the blog entry, but Roger Campbell, principal of Coalinga High School, discovered it before the deletion and handed it over to his friend Pamela Pond, editor of the Coalinga Record newspaper. Pond then published the rant in its entirety as a letter to the editor, printing Cynthia's full name. The Moreno family was met with death threats and shots were fired outside their home. Cynthia's father David was forced to close his 20-year-old family business, and the family moved to another town. The family sued the newspaper and the Coalinga-Huron Unified School District for invasion of privacy and infliction of emotional distress. The case against the newspaper was dismissed on free speech grounds, but the case against Campbell and the school district was allowed to proceed. Campbell did not violate Moreno's rights when he handed over her rant to Pond because Moreno's blog entry was published on the Internet and available for anyone to see, according to the Superior Court of Fresno County.

The row over the changes Facebook made to its terms has thrown the light on the rights people surrender when they sign up to use a website. It is likely though that until the row over Facebook's Terms and Conditions went public, few people knew what rights sites claim over the content that their members upload and share. "Less than 25% of users are making a specific point of going to the privacy settings and making changes," said Simon Davies, head of digital rights group Privacy International. Most, he said, are so keen to get using a site after registering that they do not take time to learn what will happen to any data that they are surrendering. Only later do they go back and adjust what happens to their data. "A lot of sites do have strong privacy controls," said Mr Davies. Tweaking these settings can help cut down on how much of a person's data is distributed. "It can make a difference," said Mr Davies, "particularly if the default is set in terms of maximum information flow." Blogger Amanda French looked through the pages where sites such as Facebook, MySpace, Flickr, YouTube and others spelled out their policies with regard to the data that members upload. Although the wording was different, she found that sites such as MySpace, Yahoo, Google and Twitter explicitly backed away from claiming ownership over uploaded content. A brief survey of Europe's Top 5 social sites found a similar situation. The text of the terms available on the UK sites of Facebook, Bebo, MySpace, Friends Reunited and Windows Live all back away from claiming ownership. By contrast, she wrote, the changes Facebook made to its terms were "extraordinarily grabby and arrogant".

By now, many employees are uncomfortably aware that their every keystroke at work, from email on office computers to text messages on company phones, can be monitored legally by their employers. What employees typically don't expect is for the company to spy on them while on password-protected sites using nonwork computers. But even that privacy could be in jeopardy. A case brewing in federal court in New Jersey pits bosses against two employees who were complaining about their workplace on an invite-only discussion group on MySpace.com, a social-networking site owned by News Corp., publisher of The Wall Street Journal. The case tests whether a supervisor who managed to log into the forum -- and then fired employees who badmouthed supervisors and customers there -- had the right to do so. The case has some legal and privacy experts concerned that companies are intruding into areas that their employees had considered off limits. "The question is whether employees have a right to privacy in their non-work-created communications with each other. And I would think the answer is that they do," said Floyd Abrams, a First Amendment expert and partner at Cahill Gordon & Reindel LLP in New York. The legal landscape is murky. For the most part, employers don't need a reason to fire nonunion workers. But state laws in California, New York and Connecticut protect employees who engage in lawful, off-duty activities from being fired or disciplined, according to a report prepared by attorneys at the firm Proskauer Rose LLP. While private conversations might be covered under those laws, none of the statutes specifically addresses social networking or blogging. Thus, privacy advocates expect to see more of these legal challenges. In February, three police officers in Harrison, N.Y., were suspended after they allegedly made lewd remarks about the town mayor on a Facebook account. The officers mistakenly thought the remarks were protected with a password, but city officials view

The global recession manifests itself in big and small ways, most gloomy, some quirky and often reflecting the inventive human spirit. Here is a look at some signs of the times. * With record defaults on consumer loans, collection agencies in the United States are going to extra lengths to recover the money. Illinois resident and Mercedes driver James Ricobene says an agency hired by JP Morgan Chase left a post on his daughter's MySpace page threatening action that could lead to prison, unless she contacted the agency within five days about its efforts to repossess her father's car. Ricobene has sued the collection agency and JP Morgan for libel, fraud and invasion of privacy.

Mary Kay Hoal tried everything she could to keep her daughter off of MySpace. She put password locks on the computer and blocked the site. Still, her daughter found ways to log on. Hoal's concerns stemmed from statistics that showed 29,000 registered sex offenders were on MySpace, one out of every five kids are sexually solicited online, and nine out of ten children are exposed to pornography online. When she looked for alternative safe sites for kids, she found none, so she decided to do something about it. Story continues below ↓advertisement | your ad here Click Here! The result is www.yoursphere.com, the only social networking site for kids and teens that's backed by the Federal Trade Commission through the site's Privacy Vaults approval. The site's Chief Technology officer worked at the California Department of Justice tracking anonymous online sex offenders, as well as the Megan's Law database. Moreover, it requires verified parental consent for a minor to join. Other features include: -- Requires verifiable parental consent to join -- Confirms the identity of the parent providing consent -- Confirms that the parent or guardian providing consent is not a registered sex offender -- Is exclusively for kids and teens through age 18. -- Exceeds COPPA (Children's Online Privacy Protection Act) and Federal Trade Commission (FTC) guidelines for protecting kids online through our approval by Privacy Vaults Inc. -- Whose policy is "no creepers allowed" -- lurkers are removed and banned. -- No fake profiles. (No one is anonymous on Yoursphere.com) "The bottom line is that we're the only place in the online world that that has taken extraordinary measures to help ensure the safety of its members and meets or exceeds standards set by the government," Hoal said. "Our opinion is that if it's a behavior that is illegal, immoral or unacceptable offline, then it's unacceptable online." About Mary Kay Hoal After researching the disturbing la

The software vendor's commissioned research will be revealed during a panel discussion with leaders from the California Office of Privacy Protection, Intel, and MySpace. Wednesday, Jan. 28, 2009, is Data Privacy Day, and to mark the occasion, Microsoft is participating in a panel discussion in San Francisco with privacy experts from the California Office of Privacy Protection, the Center for Democracy and Technology, Intel (NSDQ: INTC), and MySpace. Better this week than last, when Heartland Payment Systems and Monster.com disclosed major malware-driven data breaches that promise privacy headaches or worse for affected account holders. It is such incidents that worry Peter Cullen, Microsoft (NSDQ: MSFT)'s chief privacy strategist, because of the impact they can have on consumer trust. "Trust is becoming increasingly important," he said. That's why Data Privacy Day exists. Microsoft and other organizations recognize that without trust, the online economy only gets worse for everyone. Cullen explained that Data Privacy Day represents a global opportunity for organizations and individuals to come together to discuss how to better educate consumers about data privacy issues. One way to advance the discussion, Cullen said, was to commission some research, which Microsoft did in two cities, in California and Texas. "We wanted to understand how different segments of consumers, from teens to professionals to boomers, thought about privacy," he said. "There were some rather interesting results that came out of this." "Our hypothesis is that across these three segments, there would be different ways of thinking about these things," said Cullen. "We were really surprised to learn there's a large degree of similarity in the way people think about privacy."

The private correspondence of millions of people who use social networking sites could be tracked and saved on a "big brother" database, under new plans being drawn up by the UK government. Ministers revealed yesterday that they were considering policing messages sent via sites such as MySpace and Facebook, alongside plans to store information about every phone call, e-mail and internet visit made by everyone in the United Kingdom. There was immediate uproar from opposition parties, privacy campaigners and security experts who said the plans were over-the-top and unworkable. There have long been proposals, following an European Union directive in the wake of the July 2005 bombings in London, for emails and internet usage to be tracked in order to guard against future terrorist attacks.

Tax deadbeats are finding someone actually reads their MySpace and Facebook postings: the taxman. State revenue agents have begun nabbing scofflaws by mining information posted on social-networking Web sites, from relocation announcements to professional profiles to financial boasts. In Minnesota, authorities were able to levy back taxes on the wages of a long-sought tax evader after he announced on MySpace that he would be returning to his home town to work as a real-estate broker and gave his employer's name. The state collected several thousand dollars, the full amount due.

Facebook has gone a long way to protect the privacy of users on its own site. But what happens when users share their Facebook profiles and friend lists with other sites? Are social networks responsible for defending data its members decide to take elsewhere? Those questions have taken on added urgency following the introduction of tools by leading social networks, including Facebook and News Corp.'s (NWS) MySpace, that let users interact with their friends on partner sites. Facebook Connect, for example, lets a user instantly share a movie rating on Netflix (NFLX) with all or some of his or her pals on Facebook. Privacy advocates warn that these services pose a whole new set of concerns about how user data are collected and shared among sites on the Web. Using these open-networking tools, thousands of companies can unearth a trove of new data about a visitor-age, gender, location, interests, and even what a person looks like. "I'm wondering if people really understand when they're using Facebook Connect that other sites get access to their whole user profile and social graph," says Pam Dixon, executive director of the World Privacy Forum. Announced last July, Facebook Connect has already signed up more than 8,000 partner sites, many of which plan to use data collected on Facebook members for their own purposes. Joost, a video-viewing site that integrated with Facebook Connect in December, checks the ages of viewers entered on their Facebook profiles to give its own content partners-CBS (CBS), for example-a better idea of which Joost users are watching CBS programming. Digg.com will let users display their Facebook profile photos alongside comments they make on the social news-sharing site.

For years, Attorneys General Roy Cooper of North Carolina and Richard Blumenthal of Connecticut have been leading a coalition of 49 states that were pushing MySpace to add technology to verify the age of its members. The attorneys general argue that age verification will help keep younger children off the site, and therefore prevent them from being contacted by sexual predators and other unsavory characters. Tomorrow, however, leading researchers in online child safety are expected to submit a report to the attorneys general stating that age verification technology is flawed and will not protect children from online dangers. Excerpts of separate interviews with Attorney Generals Roy Cooper of North Carolina and Richard Blumenthal of Connecticut, who led the charge for social networking safety standards.

The FBI has used a secret form of spyware in a series of investigations designed to nab extortionists, database-deleting hackers, child molesters, and hitmen, according to documents obtained by CNET News. One suspect used Microsoft's Hotmail to send bomb and anthrax threats to an undercover government investigator; another demanded a payment of $10,000 a month to stop cutting cables; a third was an alleged European hitman who was soliciting for business from a Hushmail.com account. CNET News obtained the documents -- totaling hundreds of pages, although nearly all of them were heavily redacted -- this week through a Freedom of Information Act request to the FBI. The FBI spyware, called CIPAV, came to light in July 2007 through court documents that showed how the bureau used it to nab a teenager who was e-mailing bomb threats to a high school near Olympia, Wash. (CIPAV stands for Computer and Internet Protocol Address Verifier.) A June 2007 memo says that the FBI's Deployment Operations Personnel were instructed to "deploy a CIPAV to geophysically locate the subject issuing bomb threats to the Timberline High School, Lacy, Washington. The CIPAV will be deployed via a Uniform Resource Locator (URL) address posted to the subject's private chat room on MySpace.com."

NEW YORK With increasing amounts of personal information liable to float around in cyberspace, consumers are deciding whether their data is safe in the hands of some public- and private-sector entities. A BBC World News America/Harris Poll finds a mixed verdict, with social-networking sites faring especially badly. In polling conducted last month, adults were asked to say how much trust they have in various sectors "to handle your personally identified information (such as credit-card information, contact information and so forth) in a properly confidential and secure manner." The poll's best scores went to "health providers, such as doctors and hospitals," with 20 percent of respondents expressing "a great deal of trust" and 55 percent "some trust" in these. Nineteen percent voiced "not much trust" and 7 percent "no trust at all" in this sector. At the bottom of the rankings were "social-networking sites (like Facebook or MySpace)," with 5 percent expressing a great deal of trust and 18 percent some trust in these. Thirty-one percent said they had not much trust and 46 percent no trust at all in these sites to safeguard personal information. (Whether people should direct their distrust to themselves for posting such information there in the first place is a question the survey didn't address.) Respondents were also wary of "search and portal sites (like Google or Yahoo!)" when it comes to keeping personal information secure: Ten percent voiced a great deal of trust, 39 percent some, 29 percent not much and 22 percent no trust at all. Even the federal government fared (slightly) better, with 13 percent expressing a great deal of trust, 41 percent some, 28 percent not much and 18 percent none. The scores were more positive for "banks and brokerage companies": 15 percent a great deal of trust, 43 percent some, 28 percent not much and 13 percent none. That was roughly on a par with the ratings for "my e-mail provider": 14 percent a great deal, 48 percent some, 27 p

Social media is on the rise, and so are the privacy and security risks. Is it time to dial back on the whole Web 2.0 'friend' thing? The social media honeymoon is officially over. While it may not yet be time to fly to Reno for a quickie divorce, you might want to start thinking about sleeping in separate bedrooms for a while. Example du jour: Over the weekend, a rogue application spread across Facebook, warning users about bogus errors in their profiles. Clicking on the "Error Check System" app causes it to send false warnings to your entire FB posse, per the unofficial AllFacebook blog. There doesn't seem to be any payload associated with that app besides driving traffic, but the potential for abuse is obvious. But a bigger problem on social nets is an old familiar one: spam. So far, spam only accounts for about 5 to 25 percent of all e-mail passed on social networks, versus 90 percent of regular e-mail, says Adam O'Donnell, director of emerging tech for Cloudmark, which filters spam for some large social nets (but won't identify which ones). As more people start tweeting about what their cats ate for lunch and share their Facebook profiles with near-total strangers, though, that number will only grow. The type of spam on social networks is different too, says O'Donnell. Think fewer fake Viagra come-ons, more social engineering scams. In other words, the junk you get on social networks is more likely to be aimed at stealing your credentials or your identity -- and thus much more dangerous than garden-variety spam.

This tip is part of Mitigating Web 2.0 threats, a lesson in SearchSecurity.com's Data Protection Security School. Visit the lesson page or our Security School Course Catalog for additional learning resources. Social networking, a term relatively new to the computing vernacular, has already become part of the cultural norm for a great proportion of Internet users. Even more recently, the use of online communities to establish and build connections among those with shared interests has become part of the corporate world as well. As professional social networks such as LinkedIn and Blue Chip Expert continue to grow, and professional groups gain in popularity on once-personal sites like Facebook and MySpace, enterprise security and risk management professionals must face the reality that these sites are emerging conduits for the unauthorized disclosure of confidential corperate information. Add the use of public social networking tools to the list of concerns, and the effectiveness of the traditional corporate security perimeter is further diminished. However, a robust set of policy, process and architecture aids in mitigating the risks of being social. Broadly, social networking is described as software that lets people interact, rendezvous, connect, play or collaborate by use of a computer network. This definition covers the popular social networking sites, including those mentioned above, as well as blogs, wikis, RSS, podcasts, tags, and more recently, search engines. While there are numerous benefits to social network solutions, including reducing costs and increasing collaboration, we'll focus on addressing the risks.

In this expert videocast, you will learn about Web 2.0 software, the threats they pose, and whether the benefits outweigh the risks. Key areas covered include the threats posed by services like Facebook, MySpace, and LinkedIn, as well as wikis and blogs. Our expert also dives into particular attack vectors and scenarios that are becoming popular, defensive policy, and technology best practices and Web 2.0 trends to monitor going forward. Speaker David Sherry CISSP, CISM - CISO, Brown University As chief information security officer of Brown University, David Sherry is charged with the development and maintenance of Brown's information technology security strategy, IT policies and best practices, security training and awareness programs, as well as ongoing risk assessment and compliance tasks. Sherry has 20 years of experience in information technology. He most recently worked at Citizens Bank where he was vice president for enterprise identity and access management, providing leadership for compliance and security governance. He had also served as Citizens' vice president for enterprise information security, overseeing the company's security operations and controls. He has taught classes at colleges in both Massachusetts and Rhode Island, as well as spoken on identity management strategy and implementation at industry conferences. He holds undergraduate and graduate degrees in business management.

In honor of this day, the California Office of Privacy Protection--the first governmental privacy office in the nation--has created a presentation which you can download from their Web site at www.privacy.ca.gov. It's called "Secure Your Computer to Protect Your Privacy," and it explains why computer owners should use Internet firewalls, install and maintain anti-virus and anti-spyware software, and keep their operating systems and applications up to date to protect themselves from malicious attacks. The state privacy office offers lots of other information on how Californians can protect themselves and their data. You can visit their Web site, call them toll-free at (866) 785-9663, or go Wednesday at 5:30 p.m. to the main San Francisco Public Library, where Joanne McNabb, the state's privacy chief, is scheduled to appear on a panel with representatives from Microsoft, Intel, the Center for Democracy and Technology, MySpace and Teen Angels. The panel is free and is part of an international effort to raise awareness about privacy practices and privacy rights

Ah, social networking. It's become the fabric of today's Internet generation. Don't have a Twitter account? Heavens, even Sen. John McCain has a Twitter account. Signed up with Facebook? Only losers don't have a Facebook account. MySpace? Not bad, but it's so five minutes ago. But as lovely as social networking may be, there are a few problems. One of the biggest appears to be that you can kiss your privacy good-bye. Now, I'm not talking about the predilection of some people to share intimate details about themselves on social networking sites. I'm actually referring to the other things that might help contribute to your financial ruin. Those most enthusiastic about social networking are cybercriminals. They drool at the prospect of seeing the personal information of the 175 million people on Facebook. And they know how to use that information. For example, cybercrooks take great interest in the names of pets or grandparents on Facebook pages. That's the kind of information that banks and credit-card companies use to verify who you are when you bank online. "There are so many people on social-networking sites that it is becoming profitable for bad guys to go there," David Perry, global director of education at software security firm Trend Micro, recently told Agence France-Presse (AFP). "Bad guys can see all the things you post. You may be revealing personal information that is extremely valuable." Now Facebook has made revealing personal information even easier. This past week, it announced that users can change their privacy settings so everyone can see their profile. The company was actually responding to a request from many users who wanted the ability to share their information with even more people. As I said, cybercrooks are drooling.

New Jersey lawmakers are considering new legislation that would require Facebook, MySpace and others to police social networking sites for offensive posts or else face potential consumer fraud lawsuits. But some lawyers say that even if the measure is enacted, it's not likely to have much impact on social networking sites because the federal Communications Decency Act immunizes such sites from lawsuits based on material posted by users. The bill is part of state Attorney General Anne Milgram's Internet safety initiative. "The social networking site safety act is intended to deter cyber-bullying and the misuse of social networking Web sites," the Office of Attorney General said in a statement about the measure. "The bill empowers users of social networking sites to take steps to stop harassment or exploitation." Last year, Milgram garnered headlines by launching a fraud investigation of gossip site JuicyCampus.com -- where users frequently posted insults about college students -- but no legal action resulted. (That site folded last month for financial reasons.) Attempts to rein in cyberbullying might be politically popular, but this type of state effort to regulate global Web sites is also likely to prove useless, say cyber lawyers. "We need to recognize that legislating on the Internet can't be done on a state-by-state basis," said Parry Aftab, an expert on Web safety and cyber-abuse. "We can't have a different law in each state."

A majority of business executives believe that they have a right to know what their employees are doing on social-networking sites, but most workers say it's none of their bosses' business, according to a new survey by Deloitte. The survey was conducted in April with about 2,000 U.S. adults. Of the 500 respondents with managerial job titles (vice president, CIO, partner, board member, etc.), 299, or 60%, agreed that businesses have a right to know how employees portray themselves or their companies on sites like Facebook and MySpace. But 53% of employee respondents said their profiles are none of their employers' business, and 61% said that they wouldn't change what they were doing online even if their boss was monitoring their activities. That disagreement, says Sharon Allen, chairman of Deloitte's board and the sponsor of the survey, is one that companies need to address, particularly as these sites have become part of younger workers' lives. "It does, in fact, tee up the challenging debate or discussion that needs to take place to try to resolve both of their concerns," she said. Few businesses are having that conversation, according to the survey, though many executives indicated that it was on their minds. When asked what their company's policy was regarding social-networking use, roughly a quarter (26%) of employees said they knew of specific guidelines as to what they could and couldn't post. Similar numbers said their office didn't have a policy or they didn't know if their company had a policy - 23% and 24%, respectively.