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Facebook Is Using Your Tax Data!
By AP – Associated Press / reprinted
3 Major Tax Prep Firms Shared ‘Extraordinarily Sensitive’ Data About Taxpayers With Meta, Lawmakers Say
Three large tax preparation firms sent “extraordinarily sensitive” information on tens of millions of taxpayers to Facebook’s parent company Meta over the course of at least two years, a group of congressional Democrats reported on Wednesday.
They say some of that data was then used by Meta to create targeted advertising to its own users, other companies, and to train Meta’s algorithms.
The Democrats’ report urges federal agencies to investigate and potentially go to court over the wealth of information that H&R Block, TaxAct and TaxSlayer shared with the social media giant.
In a letter to the heads of the IRS, the Department of Justice, the Federal Trade Commission, and the IRS watchdog, seven lawmakers say their findings “reveal a shocking breach of taxpayer privacy by tax prep companies and by Big Tech firms.”
Their report said highly personal and financial information about sources of taxpayers’ income, tax deductions, and exemptions was made accessible to Meta as taxpayers used the tax software to prepare their taxes.
That data came to Meta through its Pixel code, which the tax firms installed on their websites to gather information on how to improve their own marketing campaigns. In exchange, Meta was able to access the data to write targeted algorithms for its own users.
The program collected information on taxpayers’ filing status, income, refund amounts, names of dependents, approximate federal tax owed, which buttons were clicked on the tax preparers’ websites, and the names of text entry forms that the taxpayer navigated, the report states.
Taxpayer data was also shared with Google, through its own tracking tools — though the firm told lawmakers that it never used the information to track users on the internet, according to the report.
The letter to federal agencies was signed by Sens. Elizabeth Warren, Ron Wyden, Richard Blumenthal, Tammy Duckworth, Bernie Sanders, Sheldon Whitehouse, and Rep. Katie Porter. The lawmakers called for the agencies to “immediately open an investigation into this incident.”
They asked the agencies to investigate “and prosecute any company or individuals who violated the law,” saying it could result in billions of dollars in criminal liability to the firms.
The Markup, a nonprofit journalism outlet focusing on technology, initially reported on the data-sharing between tax firms and Meta in November. A TaxAct representative said the firm has engaged with Warren’s office to explain its usage of the analytical tools and that protecting customers is its top priority.
A TaxSlayer representative said Wednesday that the report “contains numerous false or misleading statements” regarding the taxpayers’ personal and filing information sent to Meta and Google and it will request a retraction or correction from Warren’s office.
H&R Block said that it takes protecting client privacy very seriously and has taken steps to prevent the sharing of information through the Pixel coding.
And Meta said that it has been clear in its policies that advertisers “should not send sensitive information about people through our Business Tools.”
“Doing so is against our policies and we educate advertisers on properly setting up Business tools to prevent this from occurring,” the company said in an emailed statement. “Our system is designed to filter out potentially sensitive data it is able to detect.”
Meta’s Facebook has a history of failure when it comes to protecting user privacy.
One of its biggest scandals erupted in 2018 when investigations revealed that Cambridge Analytica, a firm with ties to Donald Trump’s onetime political strategist Steve Bannon, had paid a Facebook app developer for access to the personal information of about 87 million Facebook users. That data was then used to target U.S. voters during the 2016 campaign that culminated in Trump’s election as the 45th president.
Facebook agreed to a $725 million user settlement in that case and later was fined $5 billion by the U.S. Federal Trade Commission.
This May, the FTC proposed sweeping new changes to its standing privacy order for Meta that would bar the company from using any data collected from children under 18, including via its virtual reality technologies. The new rules would also force Meta to pause new products and services until an independent assessor confirms that they comply with the FTC order. The under-18 concerns stem largely from Facebook’s Messenger for Kids app, which has long drawn fire for insufficient privacy protections for its younger users.
Also in 2018, the company disclosed that almost 50 million accounts had been vulnerable to the theft of digital “user tokens” that attackers could use to log into personal accounts. Facebook admitted the same year that most of its then 2.2 billion users had likely had their public data “scraped” by malicious actors.
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TABLE OF CONTENTS
- 3 Major Tax Prep Firms Shared ‘Extraordinarily Sensitive’ Data About Taxpayers With Meta, Lawmakers Say
- Three large tax preparation firms sent “extraordinarily sensitive” information on tens of millions of taxpayers to Facebook’s parent company Meta over the course of at least two years, a group of congressional Democrats reported on Wednesday.
- Important Information for New Scam Victims
- Statement About Victim Blaming
- SCARS INSTITUTE RESOURCES:
- Psychology Disclaimer:
- More ScamsNOW.com Articles
- A Question of Trust
- SCARS Institute™ ScamsNOW Magazine
Society of Citizens Against Relationship Scams Inc. [SCARS]
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Important Information for New Scam Victims
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Statement About Victim Blaming
Some of our articles discuss various aspects of victims. This is both about better understanding victims (the science of victimology) and their behaviors and psychology. This helps us to educate victims/survivors about why these crimes happened and not to blame themselves, better develop recovery programs, and help victims avoid scams in the future. At times, this may sound like blaming the victim, but it does not blame scam victims; we are simply explaining the hows and whys of the experience victims have.
These articles, about the Psychology of Scams or Victim Psychology – meaning that all humans have psychological or cognitive characteristics in common that can either be exploited or work against us – help us all to understand the unique challenges victims face before, during, and after scams, fraud, or cybercrimes. These sometimes talk about some of the vulnerabilities the scammers exploit. Victims rarely have control of them or are even aware of them, until something like a scam happens, and then they can learn how their mind works and how to overcome these mechanisms.
Articles like these help victims and others understand these processes and how to help prevent them from being exploited again or to help them recover more easily by understanding their post-scam behaviors. Learn more about the Psychology of Scams at www.ScamPsychology.org
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Psychology Disclaimer:
All articles about psychology and the human brain on this website are for information & education only
The information provided in this and other SCARS articles are intended for educational and self-help purposes only and should not be construed as a substitute for professional therapy or counseling.
Note about Mindfulness: Mindfulness practices have the potential to create psychological distress for some individuals. Please consult a mental health professional or experienced meditation instructor for guidance should you encounter difficulties.
While any self-help techniques outlined herein may be beneficial for scam victims seeking to recover from their experience and move towards recovery, it is important to consult with a qualified mental health professional before initiating any course of action. Each individual’s experience and needs are unique, and what works for one person may not be suitable for another.
Additionally, any approach may not be appropriate for individuals with certain pre-existing mental health conditions or trauma histories. It is advisable to seek guidance from a licensed therapist or counselor who can provide personalized support, guidance, and treatment tailored to your specific needs.
If you are experiencing significant distress or emotional difficulties related to a scam or other traumatic event, please consult your doctor or mental health provider for appropriate care and support.
Also read our SCARS Institute Statement about Professional Care for Scam Victims – click here
If you are in crisis, feeling desperate, or in despair, please call 988 or your local crisis hotline.
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A Question of Trust
At the SCARS Institute, we invite you to do your own research on the topics we speak about and publish. Our team investigates the subject being discussed, especially when it comes to understanding the scam victims-survivors’ experience. You can do Google searches, but in many cases, you will have to wade through scientific papers and studies. However, remember that biases and perspectives matter and influence the outcome. Regardless, we encourage you to explore these topics as thoroughly as you can for your own awareness.
