Do you still trust Facebook after this latest breach? (The 3:59, Ep. 466)
Do you still trust Facebook after this latest breach? (The 3:59, Ep. 466)
2018-10-01
welcome to the 359 I'm Roger Chang I'm
Ben Fox ribbon I'm alpha rang Facebook
disclosed a breach that affected 50
million people on Friday this comes
after the Cambridge analytical breach
after what's going on here why is this
such a big deal so Facebook announced
this on Friday hackers had stolen access
to security tokens or access tokens
using Facebook's view as feature which I
don't know if you've ever seen this when
you go to your own profile you can view
it as someone else's profile so through
that feature they were able to get
access tokens for other people's
accounts and they were able to scale it
up in a way that it you know they did it
for 50 million accounts on Facebook this
was done through a vulnerability on
Facebook's like they changed how you
could post birthday videos back in July
so it was like three different sets of
vulnerabilities like the view as the
birthday pose and like video stuff and
look the security tokens so it was like
these three coming together so that they
could take these access tokens which
aren't your password but they might as
well be when you log into Facebook you
basically don't have to like enter your
password every time right that's because
after the first time you log in you get
an access token and you use that and
that's basically Facebook saying like oh
we recognize this device we've
recognized this login we trust this and
we'll give it access
so bottom line like what what makes this
a big deal why is this worse than all
the other breaches that we hear so this
is different than Cambridge analyticals
breach because when Cambridge analytic
O's breach happened they they took that
was data abuse they took data that was
public and took it without your
permission so things like your birthday
where you work where you live your
photos things like that's already on
your public profile with access tokens
you have complete access to a person's
account like they could look through
messages like private account
information and things like that and
they could post stuff if they wanted to
yeah and as well as you know you're
using these access tokens Facebook has
access tokens that work across
everything that Facebook is connected to
so if you have your Spotify account or
your an Instagram that's linked to these
access tokens they would have the
ability to log into that using the exact
same thing so it spreads throughout like
just beyond Facebook Oh scary stuff
alright the sec has slapped Elon Musk
down hard over the weekend as you see
anyone must have
come to a settlement for as much as
forty million dollars Ben what what are
the details here what what happened so
Elon Musk fairly recently tweeted out
that he had funding secured to take
Tesla private for foreign her $420 a
share that ended up being a farce and he
had to agree to pay twenty million
dollars himself and twenty million
dollars from Tesla he also decided he
agreed to step down as chairman this
could be seen as a good thing for Elon
because he's kind of spinning out of
control he could potentially use the
additional help the thing is is that
Tesla is a very insular company and so
the chances are that Elon will install a
chairman or chairwoman that he very much
trusts and will still be able to tell
what to do specifically and he remains
as CEO he remains as a director so I
don't know how much this is really gonna
change Tesla's direction right I'm
curious if this will be like the most
expensive tweet ever it because that one
tweak basically costs him twenty million
dollars forty million total if you
include yeah totally I would say that
it's very much well up there so for sure
alright so lastly this is a win for net
neutrality advocates California Governor
Jerry Brown last night signed in the
strictest energy laws in California it
also sparked this Justice Department
lawsuit they're suing California arguing
that this is an interstate issue not a
state one so really this I mean this is
a win for net neutrality advocates but
also this kind of clouds the whole scene
right we don't know what's going on now
well we don't know what's gonna happen
with this Justice Department suit and I
think it's ridiculous to see so many
different lawsuits all these
disagreements net neutrality has just
turned into this ongoing legal escapades
for fires there's another lawsuit
there's a broader lawsuit now against
the FCC in terms of trying to reverse
the the rollback of those of those Obama
era rules so lots of lawsuits lots of
unclarity or lots of just confusion over
what's going on for more of the stories
check us haven't seen it I'm Roger Chang
I'm Ben Fox Ruben I'm Alpha ranked
thanks listening
and that's a wrap on the recording of
the audio podcast which you can
subscribe to and the links down below
thanks everybody for joining us we're
gonna jump into the chat now where we
spend literally 90% of the show that's
supposed to be four minutes long
diddling around and trying to answer
questions so that's the that's the
premise at this point if you got
questions about what's gonna happen to
Tesla about what's going on with poor ol
muskie or if you have a problem not
bored that's extremely true or if you
have any inquiries about what the hell's
going on with Facebook this time we'll
be happy to floor them to start off
let's take a couple comments from mark
Sam Ricky and Lloyd mark says lol after
this I didn't trust them before Samuel
says Facebook cannot be trusted with
protecting user privacy user information
is money Ricky B says I deleted my
facebook years ago and I don't miss it
and Tom says Facebook is the new myspace
it's ironic that that's coming from a
guy named Tom that's actually MySpace
Tom like on a beachside okay nice to
have Noah's Friendster what is
Friendster wait what is Friendster no
was there a guy on Frenchmen well that
was like the guy that no that's myspace
Tom dude oh no no no there was a guy in
French tur as well I never looked this
is yeah I can't okay
so jumping off of those comments what I
wanted to ask you Alfred wise is this
even like incrementally an improvement
from Cambridge analytic in that Facebook
was the one that came out and said we
had a data breach they actually found it
of the Cambridge analytic aware there
was a whistle blower that came out and
said hey this this really looked like
the whistle blower like went to press
about it right like yes so the New York
Times had this story out like maybe 10
minutes before Facebook came out with it
so I think this was also prompted by I
see what they found
I mean they were pretty quick to
disclose this one like Cambridge
analytical they had known about it what
like four years right or something like
that so this one they found this breach
on Tuesday fixed it on three
they then announced it on Friday okay
that does seem like a bit of an
improvement but I'm not saying much
because of GDP are this is the first
breach for Facebook to happen post GDP
are and there's a 72 hour breach
notification law under that okay so they
might have actually yeah legally
obligated yeah yeah GDP our meanwhile is
the new EU regulations for general
zealots on the Internet yeah general
data protection regulation nice there
you go legally obligated is really the
only reason any of these guys do
anything good for the greater populace
hey here's one from Matthew dacher
thanks to C net for informing me of this
breach should I be worried thankfully
I've never used Facebook for
authentication now I remember hearing
over the weekend that your account would
have been logged out if they suspected
yeah yeah so expand on that yeah so if
your account was logged out over the
last three days or so you were
potentially affected by this breach or
you were one of the 40 million people
that Facebook logged out as a precaution
method the reason why is because when
you log out of your account your access
token resets itself to begin with that's
why when I was talking about earlier on
the podcast any time you log in to
facebook from a new device you know how
sometimes you're getting an email saying
like hey did you like really log in from
this device you don't get that when you
log in from your normal devices because
it has the access tokens already sure
it's these other devices that don't have
it so Facebook like I don't know if I
really tell the system they're like this
is a trusted yes or profiler yeah so if
Facebook didn't log you out there's
nothing that you need to do okay you
don't need to worry about it no yeah you
but you're still using Facebook which
means you're playing with fire yeah
pretty much
yeah I mean to be fair though you any
platform that you're using you're
playing with fire so let's keep that in
mind that this is I mean this is a
massive platform that I mean look
there's the Cambridge analytical stuff
which is a different kind of breach but
in terms of like this kind of
traditional bridges I mean it's been a
Facebook has had it coming in a while
right since they've had any kind of
breach like this really had I mean I
mean they are very hesitant to say this
is the largest breach that's ever
happened to them like on a press call on
Friday a lot of reporters are basically
asking them is this the largest breach
that's ever happened to you and they
wouldn't say they basically you know
just kind of said the investigation
still
we don't know that much about it but I
would like the argument it's not like
any other companies like not as hackable
or something like that I I think with
Facebook in this specific scenario
because Facebook is such a large
platform and because they have so many
different elements that they need to try
and protect like I said like this breach
happened through three very obscure like
methods put together like the view as
section a birthday video thing that got
like changed in July and like access
tokens it's like three very like small
parts that like you would have never
realized would come together in this way
like like just came to like blow up in
their face and respect to the hackers so
Tiger like you don't really expect it to
happen and then it just does
I'm impressed they figured that out then
but that is kind of what hackers do and
that's what they try to figure out
shifting gears over to muskie boy tom
lloyd says one point six billion dollar
fine how much did they earn stealing
probably billions just shut them down
somehow oh come on
I mean they've had their problems and
they are paying the price this time
around but shutting down Tesla's to me
sounds a little overblown
yeah keep in mind if you do that you're
also costing people lots of jobs
that's a job and it looks like the
investment community likes the fact that
musk took this deal and decided to step
down basically like it's a pretty good
deal aside from like paying twenty
million dollars he didn't really lose
anything it doesn't seem that way and so
yeah now all of a sudden test stock his
way up today it's up around sixteen
percent roughly so it's gonna balance
out when you look at how much is no it's
still it's still below when this whole
you know craziness ended up happening I
think it was it's at around three
hundred right now okay and I think it
was in the higher threes before all this
craziness happened so musk continues to
be a billionaire and hopefully somebody
like you bad for the guy
yeah hopefully the new chairperson ends
up helping restrain him hopefully the
two new independent directors will help
promotion I have is he gonna continue
he's crazy tweet rants apparently his
communications will also be monitored I
don't actually know what that will be in
practice but because his tweets are very
often perceived as you know official
trends material yeah material and
official comments about Tesla there
there is gonna be a little bit more
monitoring to that and you know one to
him if he were ever to attempt doing
something like this I think that you
know the penalties would be far more
significant so I think he's gonna have
to find his way to be a little bit more
careful and hopefully not fly off the
handle and you know just say random
disparaging you do you yeah tweet more
you forget to forget the sec you just
tweet whatever the hell you want I'm all
for it yeah okay Alfred Gillette was
named as an independent director people
control you know he talking to us it's
impressive that just literally just
happened so now it's it's just
interesting that you know he was for a
long time sort of like applauded for
being that kind of like being out there
being trying to totally transparent on
Twitter and kind of connecting with
people almost as like this prototype for
how a CEO like a modern CEO should act
on social and now it's like completely
yeah you live by the tweet you die by
the tweet man there you go it's true
it's a publicly traded company and at
some point you're gonna get you know
hemmed in and restrain there's a reason
that a lot of these longer term CEOs
hedge a lot of what they just don't say
anything
yeah or don't say anything we find it
frustrating as reporters but at the same
time you avoid getting in this type of
trouble Twitter the get off my lawn
social network from Mike Shaw US
Congress really needs laws that punish
data breaches what is the incentive for
companies to care Equifax Facebook
targets so many more if it's my data
they should pay me for being careless
with it I don't like that idea so that
is actually a movement that's been going
on in in the tech industry not from any
of these big companies that make money
off of you but there are a few startups
that have been doing this this story
came out over the weekend I don't know
if it was like some kind of publicity
stunt or if
it's an actual model that they're going
with but there's a coffee shop near
Brown University right now where you can
get a free coffee if you go and you just
give them your personal data so you're
given your name email address and like
your birthday and all this stuff and you
get a free coffee you do that every time
well that's part of the deal you get
that but like I think that's the point
of this model though there's another
startup that's been doing this in Mexico
where they'll take your personal data
off your phone and things like that but
they pay your phone bill at the end so
you don't like it's a free like page you
are you're getting a direct yeah for
your data as opposed to like what Google
and Facebook are doing well they just
take your data and not give you well
they give you that coffee shop in turns
around I don't know what they're doing
with it yet I think as far as the first
point about how there needs to be a law
to regulate privacy and things like on
your data and things like that well
there is the gdpr that's been trying to
do that in the European Union
and there has been a big push for a
federal privacy and like data protection
law in the US like I know there's at
least three Congress members that are
working on that in the meantime there
are like different state laws like the
California net neutrality law there is
also a California consumer privacy act
that passed in June which is about as
strict as the EU standard is but a lot
of these companies like Google and
Amazon and Facebook have been fighting
against it saying that you know if
California does this then you know
there's one in Vermont too if like
biometric data Vermont has the breach
notification law okay that happened
which like they have to tell us within
72 hours that happened after Equifax
then there's one in Illinois with a
facial recognition or like biometric
privacy stuff and but if you've got all
these kind of piecemeal laws yeah
different like how does the cow is a
company suppose is the idea that like
the hope is that company will have to
follow all these different regulations
does they kind of slightly create a
unified yeah the idea is like you just
take the strictest one and then just
fall apply that to the entire it kind of
like what happened with the GDP are that
only applies to the European Union but
but they have to do it pretty much every
because so much of their customers is
like well we'll just do this for
everybody yeah
so that is what the so these companies
though basically don't want like what
you're talking about like Oh
like it's different in like New York
versus different California so they want
a federal law to follow for everything
here's the catch on that though because
they have the most influence in like DC
versus influence in like individual
states like they're not gonna send a
lobbyist to every state to tell them
like hey you should do the law this way
if there is a federal law that's passed
it would probably have much less teeth
than something on gdpr or something in
California would have another thing
about GDP are so Facebook's of for mercy
is other information security officer
just tweeted this out talking about the
data that had come out from Facebook
announcing its breach because of this
new like requirement for 72 hours to
notify you don't get that much details
about it so like when Equifax had their
breach they waited like two months to
breach to inform people about but they
had all these details like here's how it
happened you know here's how many people
are affected etc etc but they had like a
whole month to like compile all that
data when you're there's 72 hours
because the GDP our folks in Ireland the
data protection Commission for them who
they have all this information from
Facebook they've been complaining about
like this is very surface level stuff
and we don't really know anything but
the thing is like Facebook doesn't
really know anything they had to tell
everybody that this happened within like
three days
so mmm so I would say erring on the side
of transparency and disclosures yeah not
a terrible thing yeah yeah alright well
so we got Brent well staying on topic
for the late comers let's kind of just
do a quick recap of what happened to
Facebook and what you should do if you
were affected bruce says wait what
happened my facebook logged me out over
the weekend uh-huh what should you do
um that's practice really just log back
in because they don't have any past
nothing is stolen in your passwords or
anything like that but I would say that
you know even though Facebook logs you
out all of your connected apps with
Facebook did not do that so so you've
got basically reset yeah you should do
the exact same thing you should log out
of all your accounts that are connected
to Facebook and then just log back in so
they've locked you out you've logged
back in do hackers still have access
then because the access token is
reset after that yeah because like all
access tokens are only like temporary
they don't like last forever but you
don't have to change your past or
anything if you really wanna be extra
cautious you can because that resets
your access token again okay but yeah
yeah they don't have access to your
passwords or anything like that but like
I said these access tokens do have
access to all these like other accounts
that you're using okay from Jerrod if
Alon is no longer chairman of the board
wouldn't that allow the board to make
whatever changed to the company they see
fit absolutely not
well I mean he's also director - he's a
director's guy he has directors on his
side as well so you have to keep in mind
like how much influence will have on the
board going for an enormous amount of
influence yeah he's he's still a
director and a lot of the directors he
had already installed or you know either
financially or familiarly connected to
elan directly so even if he's not gonna
have the chairmanship I think whatever
chair ends up coming in is gonna be
deferring or looking to him he owns 22%
of the company so I have a hard time
believing that this is really gonna
change much with him except he might not
fly off the handle as much on Twitter we
should absolutely do whatever you'd like
on social media it doesn't matter at all
there are no consequences there are no
consequences despite the $40 a day no
hypothesis or Elon Musk tweeting
whatever you want so it gives us
something to talk about besides Apple
let's Charles sure Oh seed now you had
to mention it yeah I'm just pointing out
the facts guys the messenger what do you
what do you think of the s or sorry I
keep getting that wrong the tags the 10
s max give me give me I don't talk about
I don't want to talk about it we moved
on all right so what do you think of net
neutrality Ben I what do I think about
it I'm usually I'm usually happy when
Rogers on the show because I can just
defer very quickly to him zero rating oh
yeah sure I know what that I knew troll
on this guy
one more question about musky boy any
buds on Elon Musk getting a criminal
charge since this was not a part of the
I don't think that's kind of done I
don't know what a criminal charge that
would actually look like so it doesn't
here the government's going after him
for that specifically so I think if
there were criminal charges the SEC
probably would have I mean they're the
ones that would have done it right I
know the SEC only does civil suits one
of the other issues too is I mentioned
this with like the the scuba diver in
Thailand another you know overhang for
him is that issue where he you know
accused accused the scuba diver of being
like quote unquote pedo guy so that's a
civil suit that I think was filed fairly
recently and we're also waiting to see
that so that's yet another reason why
musk should be extremely careful with
what he tweets but he still hasn't yeah
that could take over this record as like
the most expensive test true yes yeah he
gonna have the first and second place
most expensive I'm hoping he goes for
the trifecta yeah speaking of I'm a
little strapped for cash this month so
if anybody wants to buy my data taking
offers are gonna start the bids at 50
bucks
nice Wow really why would they want to
buy it though Facebook and Google
already own it
it's like a fire sale no reason for me
to try to out load it myself they're
just gonna pick it up on the street from
the second-hand mm-hmm would you guys
sell your data for a price what's your
price I mean no one would want to buy
specifically my data though usually they
buy it like in bulk yeah oh yeah it's
like buy one sheet of remember do you
remember off the top of your head what
Facebook wasn't there like some study
that said this is how much your specific
data is worth the Facebook I remember
that but I don't know the price okay
we'll have to look that up at some point
what like Facebook also it doesn't sell
data oh no they don't they don't they
that's the fact they do not sell the
data specifically they sell access to
you through advertising but they don't
sell your data but they use your data to
do the able yes yeah yeah they're not
selling your day
our data that's kind of semantics right
they are using your data to sell you to
that advertiser yeah they're selling
access to use to advertise but they're
not surrounding behind keep defending
Facebook whatever I'm defending accuracy
if anything here before we wrap it up we
have our resident conspiracy theorist
sir enjoy noticed Hey yeah nice little
factoid about the the Musk debacle did
you guys notice that sec News tweeted
about Ilan's fraud charges at 4:20 no
Elena teal on statement of stock price
of 420 and 420 in general I did not
notice believe you sir enjoy so we got a
check that we should vet that yes the
SEC social media manager arrays here
that's amazing
if true we have no reason to enjoy no
he's really usually knows more than all
three of us but yeah no it's nice to see
that the FCC or the SEC has a sense of
humor about these things and you know a
very early dig or they're completely
oblivious definitely not twenty is not
an oblivious time to release something
take it from a guy that tweets exactly
at 3:59 sometimes for the three like
that's a deliberate move yeah have you
confirmed I'm looking for okay all right
stand by we gotta we gotta find this
everybody be quiet for the next two
minutes we're gonna find out we're gonna
get to the bottom of the syringe or what
in the meantime what else we got Brian
that's kind of it for now again maybe
just refresh people for still kind of
trickling late if your facebook was
logged out over the weekend the security
breach and what the steps would take
would be log back in just log back in
you don't have to change your password
right yeah I mean it's it was it was
relatively fine it was a breach of 50
million accounts where they took your
access to but if you log back in then
the access tokens game site yeah see we
we were less you learn we learn thank
you alpha I haven't seen what no I'm not
seeing any for pointing 520 I got
oh you found it yeah hang on I'm
bringing it up now and there it is Elon
Musk settles SEC fraud charges testa
charged with and resolved securities law
charge posted at 4:20 p.m. 18 very good
fine right now it says five money online
maybe your time zones uh maybe different
I mean I'm in East we're set to Easter
and all of them yeah we have the same
I'll send this tweet to you maybe your
your time zones are different but I mean
I think your clock and your computer
might just be off but for those of us in
the eastern time zone and everything
here in the control room I have set to
Eastern obviously so yeah that's that
was 4/20 good catch to enjoy nice job
holy cow that's priceless
should we that's forty forty million
that's the price of it that's yes but
that's it for the day that was a good
show guys that was fun
yeah thanks everybody for chiming in
special thanks to syringe Oi for always
keeping this show above the fold we'll
be back tomorrow it's gonna be a packed
week and yeah thanks everyone for
joining us who wants to take us out
today I guess I should the 3:59 is
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we'll see you all tomorrow bye folks
take care bye thanks
you
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