Facebook Inc. (NASDAQ:FB): Concerns Over Privacy and Data Security

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Dallas, Texas 05/014/2014 (FINANCIALSTRENDS) –Facebook Inc. (NASDAQ:FB)’s stock traded flat on Tuesday and closed at $59.80 without any change from its previous close. The stock also traded with significantly lower volume of 48.53 million shares against its 30 day average trading volume of 80.58 million shares. Today, we can expect some momentum in the stock as the company celebrates 30th birthday of its founder and Chief Executive Officer, Mark Zuckerberg. Despite Facebook’s consistent growth drive, concerns do not seems to be ending and now latest in the series are concerns surrounding its privacy and data security.

Privacy Concerns:

Facebook Inc. (NASDAQ:FB)’s investors recently expressed concern over further intrusion into user privacy. Moves, Finnish App Company which Facebook recently acquired had been alleged to made changes to its terms of service despite having promised not to integrate its user data into Facebook profiles. Moves changed its terms to make allowances for Facebook under the premise “help provide, understand, and improve” services. Previously Moves stated that the user data would not be disclosed to third parties without users’ consent or law enforcement order.

Facebook is taking stand on this change in privacy policy saying that the sharing will be limited to its staff to further develop and support Moves. It is possible that the Electronic Privacy Center and Center for Digital Democracy could take the matter to the FTC.

Data Security Concerns:

Journalist Glenn Greenwald recently released a bunch of new documents including a presentation from Britain’s GCHQ (Government Communications Headquarters) which talks about obtaining user data from Facebook Inc. (NASDAQ:FB). The presentation titled, “Exploiting Facebook traffic in the passive environment to obtain specific information”, describes Facebook and other social network as a pretty rich source of information on targets with regards to personal details, patterns of life and connections.

The highlight is GCHQ which states despite many profiles are not public on Facebook, there lays the opportunity to collect the information given inherent weaknesses in Facebook’s security model.