In Social Networking You are the Product not the Customer

Part of understanding security on the internet is understanding who you are to the websites you are using.  When you log into your bank's website, you are the customer and your security and privacy is of the utmost importance to you and to the bank.  When you log into a social network like Facebook, Zynga, or others, you are the product and not the customer.  Your privacy is important, but only enough to keep you coming back and being exposed to more advertising, gaming, and referral information from friends.  You are only a potential customer to Facebook's paying customers ---- the advertisers who pay Facebook to place their advertisements on the right side of the screen or within games and other applications you use within the social networking site.  You are the product to Facebook.

Facebook filed legal papers this week to make way for their IPO or Initial Public Offering of stock for the company.  The expected IPO is expected to be sometime late spring 2012.  When Facebook files for such action, they have to provide financial information about the company that is disclosed to the public so that the public can invest with some knowledge of the company's value. 

Facebook reported in their financial statements that they have revenue from advertising of $3.2 Billion dollars.  If Facebook is free to you and me to use, then how do they pay their electric bill, other expenses and employees?  Their revenue, at least some $3.2 Billion dollars of it, comes from selling ads to companies that appear on the right side of your screen while you are logged in.  Some ads, if not most ads, may appear within the games and other applications that you use to send a game piece, a poke, or a valentine to a friend.   When you play Farmville, you allow the application the use of your personal information and usually your friends list giving marketers information about you and your friends to sell you something.  Even if they are not selling you something while you are on Facebook, they are finding ways to reach you by your activity on Facebook.

Even with restrictions you set in your privacy settings on these sites, you might still consider your privacy with your friends to be similar to sitting on a bench in the middle of a retail mall.  You are talking to the person sitting next to you, and while they may not hear your conversation, those who are watching can probably tell if you are playing a game, sharing pictures, or shopping at your favorite places that you have 'Liked' as you visit their site or share links you have viewed on the internet.

All of that said, this does not mean that you should not be on Facebook or that you should not use the games and other applications.  But it does mean that you should be aware of what information is being given to them and limit the amount of information that you make public or make available.  When you first enter an application or game, you are given a screen that says what information is required to be able to use that application.  If it lists information in your profile that you don't want them to have, then you should not use that application.

You are the driver on the internet highway.  Drive safe out there.