Snapchat hid security breach that exposed user information. Now Snapchap agrees to submit to 20-year privacy management program...

 (Truman Lewis @ ConsumerAffairs) Snapchat had a great thing going. Or at least it seemed to. The mobile messaging app promised consumers that they could say anything without worrying about it coming back to haunt them and promised that all communications were secure.

But the Federal Trade Commission says it wasn't so, and charged that Snapchat deceived consumers with promises about the disappearing nature of messages sent through the service.

The FTC case also alleged that Snapchat deceived consumers about the amount of personal data it collected and the security measures taken to protect that data. In fact, the case alleges, Snapchat’s failure to secure its Find Friends feature resulted in a security breach that enabled attackers to compile a database of 4.6 million Snapchat usernames and phone numbers.

“If a company markets privacy and security as key selling points in pitching its service to consumers, it is critical that it keep those promises,” said FTC Chairwoman Edith Ramirez. “Any company that makes misrepresentations to consumers about its privacy and security practices risks FTC action.”

Snaps don't always disappear

Touting the “ephemeral” nature of “snaps,” the term used to describe photo and video messages sent via the app, Snapchat marketed the app’s central feature as the user’s ability to send snaps that would “disappear forever" after the sender-designated time period expired. Despite Snapchat’s claims, the complaint describes several simple ways that recipients could save snaps indefinitely.

Consumers can, for example, use third-party apps to log into the Snapchat service, according to the complaint. Because the service’s deletion feature only functions in the official Snapchat app, recipients can use these widely available third-party apps to view and save snaps indefinitely. Indeed, such third-party apps have been downloaded millions of times.

Despite a security researcher warning the company about this possibility, the complaint alleges, Snapchat continued to misrepresent that the sender controls how long a recipient can view a snap.

In addition, the complaint alleges:

• That Snapchat stored video snaps unencrypted on the recipient’s device in a location outside the app’s “sandbox,” meaning that the videos remained accessible to recipients who simply connected their device to a computer and accessed the video messages through the device’s file directory.
• That Snapchat deceptively told its users that the sender would be notified if a recipient took a screenshot of a snap. In fact, any recipient with an Apple device that has an operating system pre-dating iOS 7 can use a simple method to evade the app’s screenshot detection, and the app will not notify the sender.
• That the company misrepresented its data collection practices. Snapchat transmitted geolocation information from users of its Android app, despite saying in its privacy policy that it did not track or access such information.

Collected contact info

The complaint also alleges that Snapchat collected iOS users’ contacts information from their address books without notice or consent. During registration, the app prompted users to, “Enter your mobile number to find your friends on Snapchat!” Snapchat’s privacy policy claimed that the app only collected the user’s email, phone number, and Facebook ID for the purpose of finding friends.

Despite these representations, when iOS users entered their phone number to find friends, Snapchat also collected the names and phone numbers of all the contacts in their mobile device address books. Snapchat continued to collect this information without notifying or obtaining users’ consent until Apple modified its operating system to provide such notice with the introduction of iOS 6.

Finally, the FTC alleges that despite the company’s claims about taking reasonable security steps, Snapchat failed to secure its “Find Friends” feature.

For example, the complaint alleges that numerous consumers complained that they had sent snaps to someone under the false impression that they were communicating with a friend. In fact, because Snapchat failed to verify users’ phone numbers during registration, these consumers were actually sending their personal snaps to complete strangers who had registered with phone numbers that did not belong to them.

The complaint also alleges that Snapchat’s failure to secure its Find Friends feature resulted in a security breach permitting attackers to compile a database of 4.6 million Snapchat usernames and phone numbers. According to the FTC, the exposure of this information could lead to costly spam, phishing, and other unsolicited communications.

Under the terms of its settlement with the FTC, Snapchat will be prohibited from misrepresenting the extent to which it maintains the privacy, security, or confidentiality of users’ information.

In addition, the company will be required to implement a comprehensive privacy program that will be monitored by an independent privacy professional for the next 20 years.