Facebook claims that it has 400 million users. But are they  well-protected from prying eyes, scammers, and unwanted marketers?    Not according to Joan Goodchild, senior editor of 
CSO (Chief Security Officer) Online.
She says your privacy may be at far greater risk of being violated than  you know, when you log onto the social-networking site, due to 
security  gaffes or marketing efforts by the company.
Facebook came under fire this past week, when 15 privacy and consumer  protection organizations filed a 
complaint with  the Federal Trade Commission, charging that the site, among other  things, manipulates privacy settings to make users' personal information  available for commercial use. Also, some Facebook users found their  private chats accessible to everyone on their contact list--a major  security breach that's left a lot of people wondering just how secure  the site is.
In two words, asserts Goodchild: not very.
On "The Early Show on Saturday Morning," Goodchild spotlighted five  dangers she says Facebook users expose themselves to, probably without  being aware of them: 
- Your information is being shared with third parties
- Privacy settings revert to a less safe default mode after each  redesign
- Facebook ads may contain malware
- Your real friends unknowingly make you vulnerable
- Scammers are creating fake profiles
Below is an edited transcript of the interview.
Is Facebook a secure platform to communicate with your friends? Here's the thing: Facebook is one of the most popular sites in the  world. Security holes are being found on a regular basis. It is not as  inherently secure as people think it is, when they log on every day.
Certainly, there are growing pains. Facebook is considered a young  company, and it has been around a few years now. It is continuing to  figure this out. They are so young, they are still trying to figure out  how they are going to make money. It is hard to compare this to others;  we have never had this phenomenon before in the way [so many] people are  communicating with each other--only e-mail comes close.
The potential for crime is real. According to the 
Internet Crime Complaint Center, victims  of Internet-related crimes lost $559 million in 2009. That was up 110  percent from the previous year. If you're not careful using Facebook,  you are looking at the potential for identity theft, or possibly even  something like assault, if you share information with a dangerous person  you think is actually a "friend." One 
British  police agency recently reported that the number of crimes it has  responded to in the last year involving Facebook climbed 346 percent.  These are real threats.
Lately, it seems a week doesn't go by without some news about a  Facebook-related security problem. Earlier this week, TechCrunch  discovered a security hole that 
made it  possible for users to read their friends' private chats. Facebook  has since patched it, but who knows how long that flaw existed? Some  speculate it may have been that way for years.
Last month, researchers at VeriSign's iDefense group discovered that a 
hacker  was selling Facebook usernames and passwords in an underground  hacker forum. It was estimated that he had about 1.5 million  accounts--and was selling them for between $25 and $45.
And the site is constantly under attack from hackers trying to spam  these 400 million users, or harvest their data, or run other scams.  Certainly, there is a lot of criticism in the security community of  Facebook's handling of security. Perhaps the most frustrating thing is  that the company rarely responds to inquiries.
Do people really have privacy on Facebook? No. There are all kinds of ways third parties can access information  about you. For instance, you may not realize that, when you are playing  the popular games on Facebook, 
such as  FarmVille, or take those popular quizzes--every time you do that,  you authorize an application to be downloaded to your profile that gives  information to third parties about you that you have never signed off  on.
Does Facebook share info about users with third parties through  things such as Open Graph? Open Graph is a new concept for Facebook, which unveiled it 
last  month at its F8 conference. It actually is basically a way to share  the information in your profile with all kinds of third parties, such as  advertisers, so they can have a better idea of your interests and what  you are discussing, so Facebook can--as portrayed--"make it a more  personal experience."
The theory behind Open Graph--even if it has not implemented it--is  its whole business model, isn't it? That is the business model--Facebook is trying to get you to share  as much information as possible so it can monetize it by sharing it with  advertisers.
Isn't it in Facebook's best interest to get you to share as much info  as possible? It absolutely is. Facebook's mission is to get you to share as much  information as it can so it can share it with advertisers. As it looks  now, the more info you share, the more money it is going to make with  advertisers.
Isn't there also a security problem every time it redesigns the site? Every time Facebook redesigns the site, which [usually] happens a  few times a year, it puts your privacy settings back to a default in  which, essentially, all of your information is made public. It is up to  you, the user, to check the privacy settings and decide what you want to  share and what you don't want to share.
Facebook does not [necessarily] notify you of the changes, and your  privacy settings are set back to a public default. Many times, you may  find out through friends. Facebook is not alerting you to these changes;  it is just letting you know the site has been redesigned.
Can your real friends on Facebook also can make you vulnerable? Absolutely. Your security is only as good as your friend's security.  If someone in your network of friends has a weak password, and his or  her profile is hacked, he or she can now send you malware, for example. 
There is a common scam called a 419 scam, in which someone hacks your  profile and sends messages to your friends asking for money - claiming  to be you--saying, "Hey, I was in London, I was mugged, please wire me  money." People fall for it. People think their good friend needs  help--and end up 
wiring  money to Nigeria.
A lot of Web sites we use display banner ads, but do we have to be  wary of them on Facebook? Absolutely: Facebook has not been able to screen all of its ads. It  hasn't done a great job of vetting which ads are safe and which are not.  As a result, you may get an ad in your profile when you are browsing  around one day that has malicious code in it. In fact, last month, there  was an 
ad with  malware that asked people to download antivirus software that was  actually a virus.
Is too big a network of friends dangerous? You know people with a lot of friends--500, 1,000 friends on  Facebook? What is the likelihood they are all real? There was a study in  2008 that 
concluded  that 40 percent of all Facebook profiles are fake. They have been  set up by bots or impostors.
If you have 500 friends, it is likely there is a percentage of people  you don't really know, and you are sharing a lot of information with  them, such as when you are on vacation, your children's pictures, their  names. Is this information you really want to put out there to people  you don't even know?
This interview, "Five  Hidden Dangers of Facebook," was originally published on  CBSNews.com. Facebook flooded with fake profilesSpammers and malware writers exploiting site to infect users
Up to 40 per cent of new Facebook profiles  could be fictitious registrations created by spammers and malware writers to infect end users, security  firm Cloudmark has warned.
Neil Cook, European head of technology  services at Cloudmark, told 
vnunet.com that  research carried out by the firm revealed that between 20 and 40 per cent of new  profiles on the popular social networking site could be bogus.
Cook explained that, once set up with a  portfolio of fake profiles, virus writers encourage users to click on links to malicious sites by  including them on postings on other users' walls or blogs.
Another tactic is to  try and get users to visit their profile pages through friend requests or personal messages. The profile page then redirects  visitors to a malware site.
"Social networks are very collaborative so it's  great for spammers and virus writers to attack," said Cook. "As soon as social networking took off,  so did the attacks."
Cook also predicted that SMS spam would eventually  seep into the UK market, spreading from China and other Asian countries.