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Scrape Timestamp (UTC): 2024-09-30 06:22:41.709

Source: https://thehackernews.com/2024/09/meta-fined-91-million-for-storing.html

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Meta Fined €91 Million for Storing Millions of Facebook and Instagram Passwords in Plaintext. The Irish Data Protection Commission (DPC) has fined Meta €91 million ($101.56 million) as part of a probe into a security lapse in March 2019, when the company disclosed that it had mistakenly stored users' passwords in plaintext in its systems. The investigation, launched by the DPC the next month, found that the social media giant violated four different articles under the European Union's General Data Protection Regulation (GDPR). To that end, the DPC faulted Meta for failing to promptly notify the DPC of the data breach, document personal data breaches concerning the storage of user passwords in plaintext, and utilize proper technical measures to ensure the confidentiality of users' passwords. Meta originally revealed that the privacy transgression led to the exposure of a subset of users' Facebook passwords in plaintext, although it noted that there was no evidence it was improperly accessed or abused internally. According to Krebs on Security, some of these passwords date back to 2012, with a senior employee stating "some 2,000 engineers or developers made approximately nine million internal queries for data elements that contained plaintext user passwords." A month later, the company acknowledged that millions of Instagram passwords were also stored in a similar manner, and that it's notifying affected users. "It is widely accepted that user passwords should not be stored in plaintext, considering the risks of abuse that arise from persons accessing such data," Graham Doyle, deputy commissioner at the DPC, said in a press statement. "It must be borne in mind that the passwords, the subject of consideration in this case, are particularly sensitive, as they would enable access to users' social media accounts." In a statement shared with Associated Press, Meta said it took "immediate action" to fix the error, and that it "proactively flagged this issue" to the DPC.

Daily Brief Summary

DATA BREACH // Meta Fined €91 Million for Mishandling User Passwords

The Irish Data Protection Commission (DPC) has fined Meta €91 million for violating GDPR rules by improperly storing user passwords in plaintext.

The security lapse occurred in March 2019, and Meta disclosed it had stored user passwords in plaintext which were accessible to internal systems.

The probe revealed Meta failed to notify the DPC promptly, did not document the data breach properly, and lacked sufficient technical measures to protect user data.

Initial reports claimed Facebook passwords were exposed, but it was later revealed that Instagram passwords were also affected, impacting millions of users.

Krebs on Security reported that about 2,000 Meta employees made nine million queries containing plaintext passwords, dating back to 2012.

Meta responded by taking immediate corrective actions and claimed to have proactively communicated the issue to the DPC.

The DPC emphasized the extreme sensitivity of passwords as they provide direct access to user accounts, highlighting the severe privacy implications of the breach.