Tag Archives: Federal Trade Commission

Blame who?

You see, we all like to blame the first party we see and the richer that person is, the more guilty he can be painted. That was the setting I saw in the Reuters story (at https://www.reuters.com/investigations/meta-is-earning-fortune-deluge-fraudulent-ads-documents-show-2025-11-06/) where we are given ‘Meta is earning a fortune on a deluge of fraudulent ads, documents show’ and the underlying text “Meta projected 10% of its 2024 revenue would come from ads for scams and banned goods, documents seen by Reuters show. And the social media giant internally estimates that its platforms show users 15 billion scam ads a day. Among its responses to suspected rogue marketers: charging them a premium for ads – and issuing reports on ’Scammiest Scammers.’” Seems to lay the blame squarely in the lap of Sir Mark Anthony Zacharias of the Zacharians from the city of Rome (I need to introduce drama here) but is that correct? I am not claiming he is innocent, but is it completely there? Or is there another side to this. You see, Meta, Facebook and legions others are in that same setting. What brings out the stage of Meta is the numbers of ‘willing to be fooled fish’ in that batter. And when we are given “A cache of previously unreported documents reviewed by Reuters also shows that the social-media giant for at least three years failed to identify and stop an avalanche of ads that exposed Facebook, Instagram and WhatsApp’s billions of users to fraudulent e-commerce and investment schemes, illegal online casinos, and the sale of banned medical products.” We see the blame and the blame at the top of the hill is a youthful young sprout (41) called Mark Zuckerberg with his $251,000 million in his wallet (I am willing to wager that this amount does not fit in his wallet) and there is a reason for my approach here. You see, everyone is so happy that there is a setting for advertisements and that ball is thrown all over the place and as I personally see it, I reckon that LinkedIn is in a similar place and there another setting exists. The scammers place an job ad in LinkedIn and from there they get their pool of optional gophers to dig into. In the last week I have had over half a dozen scam attempts and I believe the source to be LinkedIn. As such I have a different setting. I reckon it becomes a massive essential development to tackle the Advertisement settings of these settings. Better protection is required and larger systems are required to vet the advertisers. I know that all kinds of people will object for whatever reason, but that means that you do not get to whine if you are scammed. And what about the FTC? The FTC has primary responsibility for determining whether specific advertising is false or misleading, and for taking action against the sponsors of such material. You can report consumer fraud to the FTC. So what did they have to say? And that becomes interesting as the Article by Jeff Horwitz does not mention the FTC, not even once. So what did they have to say? Or was the win here to paint the guy with the big wallet? So how does that play out with LinkedIn, what about TikTok (I am not on TikTok, so I am clueless here), I also dropped Facebook over a year ago. 

But the setting is clear, the Reuters story is massively not-finished. And there is a bigger setting. We went with the old settings and applied them to social media, but there are different rules that need to be applied and a simple portal or over the phone advertisement sale will not be sufficient for the safety of the consumers getting scammed. So, basically I am merely on LinkedIn and as such (with the scammers to try me) there is every chance that they have a similar problem and in that setting there are several job sites that need thorough sanitation (my personal view) because they are in the setting that every advertiser is revenue in the bank and that is not always the case. 

So the short and sweet of it is that there is little doubt that Mark Zuckerberg holds some of the blame, some, not all. Because as I see it, the FTC has a much bigger problem. And where is the Federal Trade Commission in all of this? And when we see “A cache of previously unreported documents reviewed by Reuters also shows that the social-media giant for at least three years failed to identify and stop an avalanche of ads that exposed Facebook, Instagram and WhatsApp’s billions of users to fraudulent e-commerce and investment schemes, illegal online casinos, and the sale of banned medical products.” As such the FTC remained dumb dumb for over three years? And Reuters never fave that any thought? Neither did many other players and the FTC never went to the media saying that the advertisements require a larger overhaul giving them a new setting of hunting down scammers. And as most of them are abroad, other settings need to be considered, but Reuters missed that part too.

Have a great day and if you get an email from a prince in Nigeria telling you that you inherited a million dollars, there is a chance that this is not on the up and up.

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The congressional sham

The papers are ‘covering’ live the entire Facebook hearing, we see several papers covering it and I think that this is a good thing. Yet, most papers are not without flaws. The fact that I have been writing about the entire mess of data privacy since 2013 makes it to the best of my knowledge a Capitol sham at best (pun intended) . you see, these so called senators are all up in arms and we see the Washington Post (at https://www.washingtonpost.com/news/the-switch/wp/2018/04/10/mark-zuckerberg-facebook-hearing-congress-testimony) give quotes like “from data privacy to Russian disinformation“, you see, it is a lot less about data privacy than it is about the Russians. The anti-communist gene in Americans is too strong; the yanks get too emotional and become utterly useless in the process. So is it about the 44 senators grilling Mark Zuckerberg, is it about their limelight and about their re-election visibility, or is it about global data privacy? I can guarantee you now that it will not be about the last part and as such we will see a lot more warped issues shine on the congressional dance floor.

In that regard, when you read “They demanded new detail about how Facebook collects and uses data and elicited assurances that it will implement major improvements in protecting personal privacy“, it might be about that, but it will be a lot more on oversight and how the US government wants to be able to ‘check’ all that data. They wanted access to all that data since Facebook became one year old. So when we see ‘Sen. Kennedy: “I don’t want to have to vote to regulate Facebook, but by god, I will. That depends on you.”‘ you better believe that the ‘depends on you‘ can be read as ‘as long as you give us access to all your data‘, which contains the shoe that fumbles.

So when we see “Several asked for detailed answers about how private, third-party companies, such as the political consultancy Cambridge Analytica, gained access to personal data on 87 million Facebook users, including 71 million Americans“, we see the valid question, yet that did not require a congressional hearing, so that is merely the icing that hides the true base element of the cake. It is the honourable Sen. John Thune (R-S.D.), chairman of the Commerce Committee that gives the first goods: “Many are incredibly inspired by what you’ve done. At the same time, you have an obligation, and it’s up to you, to ensure that dream doesn’t become a privacy nightmare for the scores of people who use Facebook”, you see, freedom of data and misuse of information as set by insurances. The statements like ‘Insurance companies warn that under certain circumstances, posting about your holidays on social media could result in your claim being declined if you are burgled‘. These senators were not really that interested in all this whilst the entire insurance issues have been playing as early as 2010; they were likely too busy looking somewhere else. The entire privacy mess is a lot larger. We see this at the Regis University site when we take a look at: “A new survey by the National Cyber Security Alliance (NCSA) reveals nearly one in five Americans (19%) has been the victim of some form of cyber stalking, defined as any persistent and unwanted online contact with another individual. Through aggressive social media contact, repeated emails or other methods of online connectivity, cyber stalkers represent a serious and growing threat to men and women who otherwise wish to disengage from those who make them feel uncomfortable. Still, the NCSA report shows only 39% of those who believed they were being stalked online reported the incident to authorities“, so was there a senatorial hearing then? No, there was not. In addition, a situation where one in 5 Americans is subject to stalking, yet in all those years almost nothing was done. Why is that? Is that because the overwhelming numbers of these victims have tits and a vagina, or merely because they are less likely to be communist in nature?

Does this offend you?

Too bad, it is the direct consequence of inaction which makes todays issue almost a farce. I stated almost! So, is the issue that the data was downloaded, or that the data on millions of Americans is now in the hands of others and not in the hands of the US government? This loaded question is a lot more important than you might think.

The fact that this is a much larger farce is seen when the Democrat from Illinois decides to open his mouth. It is seen in “Sen. Richard Durbin (D-IL), asked Zuckerberg what hotel he stayed at Monday night and the names of anyone he messaged this week“, was it to break the ice? If all 44 senators do that, then we see evidence why the US government can’t get anything done. It is actually another Democrat that gives rise to issues. It is seen in Sen. Richard Blumenthal (D-Conn.) said, “We’ve seen the apology tours before… I don’t see how you can change your business model unless there are different rules of the road.”, the man makes a good case, but I am not certain if he is correct. You see, unless the US government is ready to lash out massively in the abuse of data towards any corporation found using social media on exploiting the privacy of its members, and insurers are merely one part in all this. You see, the rules of the road have been negated for some time in different directions, unless you are willing to protect the users of social media by corporate exploitation, Richard Blumenthal should not really be talking about traffic rules, should he? This directly links to the fact that 90% of hedge funds were using social media in 2014. Were they properly looked at? I wonder where those 44 senators were when that all went down.

The one part that will actually become a larger case comes from Massachusetts. “Democratic Sen. Edward J. Markey (Mass.) plans to introduce a new bill Tuesday called the CONSENT Act that would require social giants like Facebook and other major web platforms to obtain explicit consent before they share or sell personal data“, it will change the business model where data is no longer shared, or sold, but another model where all this is set up by Facebook and he advertiser can get the results of visibility in top line results. That is the path Facebook would likely push for, a more Google approach in their setting of AdWords and Google analytics. Facebook is ready to a much larger extent on this and it is a likely path to follow for Facebook after all this. Yet in all this the theatre of congress will go on a little longer, we will know soon enough. In the end 44 senators will push regarding “The Federal Trade Commission is investigating violations of a 2011 consent decree over privacy policy at Facebook that could lead to record fines against the company“, in the end it will be about money and as it is more likely that the data on Americans made it to Russia, the fine will be as astronomically high as they could possibly make it. They will state in some way that the debt of 21 trillion will have nothing to do with that, or so they will claim. In the end Mark Zuckerberg partially did this too himself, he will get fined and so he should, but the entire theatre and the likelihood that the fine is going to be way overboard, whilst in equal measure these senators will not chase the other transgressors is a much larger case and calls for even more concern. You see, there is a much larger congressional sham in play. It was exposed by Clay Johnson, formerly of the Sunlight Foundation, (more at http://www.congressfoundation.org/news/blog/912). The issue is not merely “On the Hill, congressional staff do not have the tools that they need to quickly distill meaning from the overwhelming volume of communications that they receive on any given day“, it is that Facebook has been able to add well over 400% pressure to that inability. That given is what also drives the entire matter of division in American voters. I myself did not think that ‘fake’ news on events did any serious damage to Democrat Hillary Clinton, from my point of view; she did that all to herself during her inaction of the Benghazi events.

In the end I believe that the bulk will go after Mark Zuckerberg for whatever reason they think they have, whilst all hiding behind the indignation of ‘transplanted data‘. The fact that doing this directly hit the value that the rest of his data has is largely ignored by nearly all players. In addition, the fact that the BBC gave us ‘More than 600 apps had access to my iPhone data‘ less than 12 hours ago is further evidence still. So when will these 44 senators summon Tim Cook? The fact that the BBC gives us “Data harvesting is a multibillion dollar industry and the sobering truth is that you many never know just how much data companies hold about you, or how to delete it” and the fact that this is a given truth and has been for a few years, because you the consumer signed over your rights, is one of those ignored traffic rules, so the statement that Richard Blumenthal gave is a lot larger than even he might have considered. It is still a good point of view to have, yet this shown him to be either less correct on the whole, or it could be used as evidence that too many senators have been sitting on their hands for many years and in that matter the least stated on the usefulness of the European Commission the better. So when we read “The really big data brokers – firms such as Acxiom, Experian, Quantium, Corelogic, eBureau, ID Analytics – can hold as many as 3,000 data points on every consumer, says the US Federal Trade Commission“, we see that Equifax is missing from that list is also a matter for concern, especially when we consider the events that Palantir uncovered, whilst at the same time we ignore what Palantir Gotham is capable of. I wonder how many US senators are skating around that subject. We see part of that evidence in Fortune, were (at http://fortune.com/2017/10/10/equifax-attack-avoiding-hacks/) we see “Lauren Penneys, who heads up business development at Palantir, advised companies to get their own data and IT assets in order—both to better understand what risks do exist and to improve readiness to respond when a breach does happen“, she is right and she (validly) does not mention what Palantir Gotham is truly capable of when we combine the raw data from more than one corporate source. With the upcoming near exponential growth of debt collection, and they all rely on data and skip tracing of social media data, we see a second issue, which these senators should have been aware of for well over two years. So how protective have they been of citizens against the invasion of privacy on such matters from the Wall Street Golden Child? Even in London, places like Burford Capital Ltd are more and more reliant on a range of social media data and as such it will not be about traffic rules as the superrich are hunted down. We might not care about that, mainly because they are superrich. Yet as this goes on, how long until the well dries up and they set their nets in a much wider setting?

We claim that we are humane and that we set the foundation for morally just actions, but are we? The BBC actually partially addresses this with: “Susan Bidel, senior analyst at Forrester Research in New York, who covers data brokers, says a common belief in the industry is that only “50% of this data is accurate” So why does any of this matter? Because this “ridiculous marketing data”, as Ms Dixon calls it, is now determining life chances” and that is where the shoe truly hurts, at some point in the near future we will be denied chances and useless special rebates, because the data did not match, we will be seen as a party person instead of a sport person, at which point out premiums would have been ‘accidently’ 7% too high and in that same person we will be targeted for social events and not sport events, we will miss out twice and soon thereafter 4 fold, with each iteration of wrong data the amount of misconceptions will optionally double with each iteration. All based on data we never signed up for or signed off on, so how screwed is all this and how can this congressional hearing be seen as nothing more than a sham. Yes, some questions needs to be answered and they should, yet that could have been done in a very different setting, so as we see the Texan republican as the joke he is in my personal view, we see “Sen. Ted Cruz (R-TX) asked Zuckerberg about 2016 reports that the company had removed conservative political news from its trending stories box, and followed up with questions about its moderators’ political views. When Zuckerberg said he didn’t ask employees for their political views, Cruz followed up with “Why was Palmer Luckey fired?”“, we wonder if he had anything substantial to work with at all. So when you wonder why Zuckerberg is being grilled, ask yourself, what was this about? Was it merely about abuse of data by a third party? If that is so, why is Tim Cook not sitting next to Zuckerberg? More important, as I have shown some of these issues for close to 5 years, why was action not taken sooner? Is that not the more pressing question to see answered?

 

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