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Meta fined $101 million for storing passwords in plaintext

Meta was fined over $100 million by the EU privacy regulator on Friday due to a security issue with Facebook users’ passwords. The Irish Data Protection Commission fined the U.S. tech company 91 million euros ($101.6 million) after an investigation.

The watchdog opened an investigation in 2019 after Meta reported that some passwords were accidentally stored in plain text, making them searchable by employees.

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Deputy Commissioner Graham Doyle said it’s “widely accepted” that user passwords should not be stored in plain text, “considering the risks of abuse.”

Meta said a security review found that a “subset” of Facebook users’ passwords were “temporarily logged in a readable format.”

“We took immediate action to fix this error, and there is no evidence that these passwords were abused or accessed improperly,” the company said in a statement. “We proactively flagged this issue to our lead regulator, the Irish Data Protection Commission, and have engaged constructively with them throughout this inquiry.”

Meta has received several large fines from its lead EU regulator in Dublin for data privacy violations. These include a €405 million fine for Instagram’s mishandling of teen data, a €5.5 million penalty for WhatsApp, and a €1.2 billion fine for Meta regarding transatlantic data transfers.

Meta did not immediately respond to a request for comment.

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