[HN Gopher] Twitter faces FTC probe, likely fine over use of pho...
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       Twitter faces FTC probe, likely fine over use of phone numbers for
       ads
        
       Author : samizdis
       Score  : 164 points
       Date   : 2020-08-04 16:36 UTC (6 hours ago)
        
 (HTM) web link (arstechnica.com)
 (TXT) w3m dump (arstechnica.com)
        
       | segmondy wrote:
       | Despite all that, their ads are straight up garbage. Either that
       | or I'm very hard to target. I swear Twitter and Facebook must
       | display random ads to me. I'm often having to mark it as never
       | show this again because it's so way off from my interests.
        
       | cracker_jacks wrote:
       | > Twitter estimates the "range of probable loss" it faces in the
       | probe is between $150 million and $250 million
       | 
       | That's close to 10% of Twitter's annual revenue. How do the likes
       | of Google and Facebook get away with fines <1% of annual revenue?
       | This seems disproportionate. I am not taking a position on
       | whether it should be higher or lower, just that it appears
       | unbalanced.
        
         | mrosett wrote:
         | Part of the difference is that Twitter has much lower revenue
         | per user than the other two. If you frame the fine as "$X per
         | user impacted" rather than as "y% of your revenue" then it
         | seems more proportional.
        
         | gundmc wrote:
         | $150 - 250 MM is more like 4-7 % of revenue than 10% based on
         | their 2019 figure.
        
           | tjoff wrote:
           | Also note that they did this for _seven years_.
           | 
           | It is really hard to grasp how pathetic the modern web is,
           | where this is commonplace.
        
             | thephyber wrote:
             | What does this have to do with "the modern web"?
             | 
             | The weakness here is both the legal system that allowed it
             | and the regulatory system that failed to police it for
             | years.
        
               | kulahan wrote:
               | Because the modern web is based entirely around invading
               | the privacy of every user as much as possible in order to
               | sell their private details to advertisers. If Twitter's
               | money came from users in the form of subscriptions or
               | purchases, rather than from advertisers in the form of
               | paid, targeted ads, this would be _guarded_ information,
               | rather than _shared_.
        
       | RandomBacon wrote:
       | Good. Didn't Facebook do the same thing? I don't remember if they
       | were fined or not.
        
         | tyre wrote:
         | They did and were fined $5bn for privacy violations generally,
         | of which one part was:
         | 
         | > In addition to these violations of its 2012 order, the FTC
         | alleges that Facebook violated the FTC Act's prohibition
         | against deceptive practices when it told users it would collect
         | their phone numbers to enable a security feature, but did not
         | disclose that it also used those numbers for advertising
         | purposes.
         | 
         | https://www.ftc.gov/news-events/press-releases/2019/07/ftc-i...
        
       | mercora wrote:
       | is there any benefit in using the phone network for 2FA besides
       | (IMHO too) easy recovery in case of loss? Is there an
       | equivalently usable method for recovery? recovery codes aren't
       | practicall i guess because people would keep loosing them too.
       | 
       | Maybe some pseudonymous proof using cryptographic functions of
       | modern passports could be used somehow without revealing real
       | identity to the passport issuer too? It should not be possible to
       | know who issued the pseudonymous identity proof but should also
       | only be proof-able by me...
        
         | gruez wrote:
         | You can outsource it to something like authy, which is still
         | sms based, but gets disabled if you install their app. They
         | also claim that they can detect number porting attacks, so that
         | might be marginally better.
         | 
         | >Maybe some pseudonymous proof using cryptographic functions of
         | modern passports could be used somehow without revealing real
         | identity to the passport issuer too?
         | 
         | You can still lose your passport. It's less likely than losing
         | your phone, but still. Also, to access the cryptographic
         | functions of a passport, you probably need a NFC reader, which
         | isn't exactly accessible.
        
       | jeremynixon wrote:
       | This is a deep violation that makes every user of 2fa _unsafe_. A
       | mere $250 million? This needs to be the kind of violation that
       | endangers the company. It's not a mistake or honest error when
       | 2fa phone numbers are used for advertising. This is malicious.
       | Should be scaled to 100X the amount the company gained in
       | advertising for the violation.
        
         | Silhouette wrote:
         | _This is a deep violation that makes every user of 2fa
         | _unsafe_._
         | 
         | It's certainly a violation of trust that could make people less
         | likely to volunteer extra information for 2FA that could be
         | used against them, even if it might also make them safer. For
         | that alone, wilful violations ought to be treated as a serious
         | breach under data protection laws.
         | 
         | The number of important financial services I use that now
         | insist on phone numbers for 2FA is getting irritating, too.
         | Apparently in some cases it's been prompted by the changes in
         | EU rules under PSD2, but as with almost everything else I've
         | come across so far under PSD2, I'm not sure how much safer it
         | will really make anyone. At least those financial services --
         | and my government, which is the other organisation I see doing
         | this routinely now -- probably aren't going to use the contact
         | information for anything other than the 2FA they claim, though.
        
         | 1vuio0pswjnm7 wrote:
         | I don't have the citation but I recall a researcher who was
         | studying this practice. He suggests that these requests for
         | "factors" will continue to escalate to the point of absurdity.
         | The sales pitch to the user is essentially "The more we know
         | about you, the more we can protect you." However, if the user
         | is seeking protection from others who are trying to discover
         | her personal details, then this continual "full disclosure" to
         | each tech company is counterproductive.
         | 
         | This sort of nonsensical reasoning has also used by individuals
         | portrying themselves as "whitehats" who try to profit from
         | large leaks of personal data. Users are asked to provide
         | personal data in order to confirm whether their personal data
         | has been leaked.
        
         | WrtCdEvrydy wrote:
         | Should be 1 million per user per text message sent out.
         | 
         | Trust me, if our agencies had teeth, and executed a corporation
         | for shit like this, we'd have a better technology ecosystem.
        
           | edmundsauto wrote:
           | Similarly, if we executed every criminal who is convicted of
           | a violent crime, we would have far fewer violent criminals.
        
         | noscrewstoyous wrote:
         | You shouldn't use a phone number for 2fa to begin with, you'd
         | be better off without 2fa if that's the only option IMO
         | (assuming you're using a strong unique password). This is just
         | more fuel on that fire.
        
           | moscovium wrote:
           | Remember when Jack Dorsey had his SIM attacked for the 2fa?
        
           | diabeetusman wrote:
           | 2FA with SMS protects against password reuse or leaks. It's
           | my understanding that SMS is weak against attacks targeted at
           | particular people while being sufficiently strong for the
           | majority of cases.
        
             | thephyber wrote:
             | SS7 attacks scale better. SIM cloning is a lot of effort
             | just to compromise a single SMS number.
             | 
             | In general, SMS is better than no 2FA, but it's weaker than
             | OTP/OTH or a token like YubiKey or Titan.
        
         | amznthrwaway wrote:
         | 1) it doesn't make every user of 2fa unsafe. Don't be absurd.*
         | 
         | 2) $250MM is 10% of their annual revenue. That's extremely
         | meaningful.
         | 
         | If you want an example of an overly light fine, this is not it.
         | 
         | * yes, I know that you will argue, in bad faith, using some
         | absurd definition of the word 'unsafe', but it simply isn't the
         | case.
         | 
         | unsafe is what happens in places (like HN) where the moderators
         | welcome white supremacists and other people who want to
         | exterminate a portion of the population. unsafe is not an
         | unwanted text ad.
        
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       (page generated 2020-08-04 23:00 UTC)