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Should you think twice about Facebook Gifts?

If Facebook collects personal financial information, it may know more about you than nearly any other company.

By MSN Money Partner Oct 10, 2012 3:18PM

This post comes from Eduard Goodman at partner site Credit.com.

 

Credit.com logoFacebook recently announced a new service, Facebook Gifts, that allows users to send Starbucks gift cards, Magnolia Bakery cupcakes, Gund teddy bears and other knickknacks for events like birthdays, job promotions and anniversaries. (The Palo Alto, Calif., social networking giant has plans to add more types of gifts every day.)

 

Image: Magnyfying glass (© Creatas/SuperStock)Are there any risks from a cybercrime or identity-theft perspective that new users should be aware of?

 

Gift recipients will be required to enter their physical address upon receiving notification that they have been given a gift. Users need to be especially wary of fake emails claiming to be from Facebook. It's always a gamble to provide personal data to a company storing information, and especially to a social networking site so highly scrutinized for its privacy practices.

 

There is strong potential for malicious spam emails to be generated, like "You have just received a Facebook Gift, please click here to redeem." We see instances like this all the time, and the link included usually opens up to a website exposing the user to malware.

 

With its new offering, too, Facebook will start collecting more credit card and banking information than ever before. There are a lot of unknowns, but this could be the missing piece of the profile puzzle. Facebook stores an enormous amount of information about its users, and the volume of data is growing. If the company gains personal financial information, it may know more about you than nearly any other company does.

That's putting a lot of trust in one business. If Facebook is ever hit by a cyberattack and information fell into the wrong hands, it could be catastrophic for millions of people.

 

But it doesn't take a large-scale attack for damage to be done. Most people are willing to offer their personal information, and gifts could possibly help facilitate that. More users may be apt to reveal their birthdays in their profile now that there's a gift incentive. Birthdays often are used to verify a customer's identity, so it's valuable information for identity thieves. Anytime you provide information to complete the mosaic of your life, you're putting yourself in harm's way.

 

"Card not present" fraud is a big issue, leading many merchants to ask for the security code on the back of your credit card. Will Facebook also ask for the security code for your card? Anytime you provide information, you expose yourself to the possibility of being compromised. The question is how extensive that exposure will be.

 

For most of us, it's a lot bigger than a gift card or fancy cupcakes -- of that I'm sure.

 

More on Credit.com and MSN Money:

1Comment
Oct 10, 2012 4:31PM
avatar
If you want a truly inexpensive, social, and cross platform gifting solution that lets the recipient get exactly what they want, then check out www.zPerfectGift.com.  You can chip in as little as $5 towards any gift….invite friends and make it a group gift.  The recipient transfers the funds onto a gift card of their choice and buys exactly what they want. It’s completely free too and works across Facebook, LinkedIn, Google+ or with any email address.  A much, much better gifting solution!

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