Problems: Malware, account hijacking, phishing, and social engineering
The biggest malware risk is Koobface, (an anagram of Facebook), which is a worm that targets social networking sites and affects Windows-based computers. Once a computer is infected, it hijacks the Facebook account and sends messages to other friends of the victim, enticing them to click on a link. The link redirects to a Web site where they are prompted to download software ostensibly to watch a video. However, there is no video; only malware that infects the system, blocks access to security sites, and can be used to steal sensitive information from the computer, such as credit card numbers. Infected machines can then be used to spread the worm to others on Facebook, send spam and distribute fake antivirus alerts, said Rik Ferguson, a security researcher at Trend Micro. Koobface now can automatically create new profiles using infected machines, he said.
Facebook accounts can be hijacked in several ways. A brute-force attack can be used to guess passwords. Users can fall for phishing attacks by clicking on links in messages or e-mails purportedly coming from friends that redirect to a fake Facebook log-in page. Or malware such as Koobface can steal passwords.
Social engineering is a huge problem for social networks because the trust that users have for messages and posts from friends can be easily exploited by scammers. Hijacked accounts are used to send everything from spam touting weight loss plans to links that install malware and steal passwords to fake emergency messages saying a friend is stranded in another country and needs someone to send money. Scammers are also sending e-mails that look like they come from Facebook and include an attachment that contains a Trojan.
Solutions: Use antivirus and anti-malware software and keep it up-to-date. Install security updates for operating system and other software. Use software like AVG Linkscanner or McAfee Site Adviser to protect against phishing and malware attacks. Become a fan of the Facebook Security page, which has posts related to all sorts of security issues, tips, resources and other information. If you think you've been infected with Koobface or other malware you should reset your password and notify friends who may have been affected.
Use an up-to-date browser that features an antiphishing black list, such as Firefox 3.0.10 or Internet Explorer 8. Be aware of where you enter your password. Check to see that you are logging in from a legitimate Facebook page with the Facebook.com domain. Be wary of unusual stories or offers that are too good to be true. Verify information with sources directly. Be cautious of any message, post or link that looks suspicious, requires an additional log-in or asks you to download or upgrade software. If a link seems odd or lacks context, don't click on it. Don't click on links or open attachments in suspicious e-mails. You can add a security question from the "Account Settings" page if you would like an additional layer of protection.
Problem: Rogue applications
Facebook doesn't vet every app that appears on the site, which means there is a risk that some apps will have bugs in them or will violate Facebook's privacy policies. Facebook has proven diligent in removing rogue and problem apps quickly when it is notified, but unlike iPhone apps, pretty much anyone can write a Facebook app. "Because the code is not always of professional standard or hosted or audited by Facebook, we've seen innocent apps compromised externally and used to deliver malware, such as fake antivirus," Ferguson said. One rogue app that appeared early in the year sent notifications to Facebook users reporting them in violation of terms of service and offering a link that lead to an application called "facebook -- closing down!" which then spammed all the friends of affected users, according to Trend Micro.
Solution: See solutions above, and be cautious about adding applications. Research the developers and perform Web searches to see if anyone has complained about the app. And ask yourself, what value does the app provide? Do I really need to play zombie?
Problem: Privacy leaks due to user error
Because people control who they are friends with on Facebook it is easy for users to have a false sense of security about the privacy of their data and activities on the site. Social engineering attacks, lax security practices by users like using weak passwords and design or implementation problems with the site itself can undermine the privacy protections users rely on. Users who fall for phishing scams and get their accounts hijacked have everything in their account exposed to strangers who can then use the different types of data for identity fraud or to target the victim's friends with social engineering attacks.
Solution: See solutions above. Also, use unique logins and passwords for each Web site you access. Use strong passwords, change them often and don't share them with anyone.
How to keep most people from viewing your friends list on facebook:
1. Click on Profile on the facebook top bar:
2. Scroll down to the friends list & click on the pencil to the right of friends:
3. Uncheck the box "Show friend list to everyone"
Note: All these information were taken from CNET
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