Meta Fined €91 Million for Storing User Passwords Unencrypted

Meta, the parent company of social media giants like Facebook and Instagram, has been hit with another fine in Europe. This time, the penalty is linked to poor handling of sensitive user data, specifically passwords that were stored without proper safety measures.

The Irish Data Protection Authority, which oversees many large US tech firms due to their offices in Ireland, has fined Meta 91 million euros. The penalty comes after the company admitted to saving user passwords in plain text, meaning without any kind of safety layer or code to protect them.

The issue was found during a security check in 2019, when Meta quickly informed the Irish Data Protection Commission (DPC) about the problem. Despite the quick action, the investigation into the issue took several years, and today, Meta has been made to pay for what the DPC called a serious neglect of user data.

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Why Plain Text is a Big Deal

Passwords in plain text can be a huge risk because they are not hidden or scrambled. This means if someone were to get access to Meta’s data, they could easily see and use people’s passwords. Irish Deputy Data Officer Graham Doyle said it is well-known that user passwords should never be stored this way. This is because of the high risks of abuse.

However, Meta has stated that there is no proof that any passwords were stolen or used inappropriately. A Meta spokesperson confirmed that as soon as the error was found, they took steps to fix it. They also worked with the DPC throughout the investigation to ensure there was no further risk.

Meta’s Ongoing Legal Battles

Meta is no stranger to fines in Europe. The company has been penalized for breaches of the General Data Protection Regulation (GDPR). The GDPR is a set of rules that the European Union (EU) introduced in 2018 to protect user privacy. In total, Meta has been fined 2.5 billion euros by the Irish DPC alone.

This includes a record-breaking fine of 1.2 billion euros, imposed in 2023, which Meta is still appealing. Despite the fines and ongoing legal struggles, Meta continues to be one of the most prominent tech firms globally. There are millions of users relying on its platforms daily.

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