The Wall Street Journal is reporting that several phone apps are sending sensitive user data to Facebook, including health information, without users’ consent. AP
The Wall Street Journal is reporting that several phone apps are sending sensitive user data to Facebook, including health information, without users’ consent. AP
The Wall Street Journal is reporting that several phone apps are sending sensitive user data to Facebook, including health information, without users’ consent. AP
The Wall Street Journal is reporting that several phone apps are sending sensitive user data to Facebook, including health information, without users’ consent. AP

Facebook failed to disclose it was getting personal user data from app developers


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From weight loss goals to real estate preferences, Facebook failed to disclose it received sensitive, personal information about mobile application users – even of those who are not Facebook users – and then selling the data for targeted advertisements, an investigation by The Wall Street Journal has found.

While it had been previously reported that smartphone apps commonly send information to Facebook about when users access these apps, and sometimes of their activities, it was never disclosed that at least 11 popular apps – representing tens of millions of downloads – have been sending sensitive user data to the social media company, the Journal said.

In the newspaper's audit of Instant Heart Rate: HR Monitor, Apple's most-downloaded heart-rate app, it was found the app sent a user's heart rate to Facebook immediately after it was recorded. Flo Health's Flo Period & Ovulation Tracker sends the social media platform data indicating if a user was on her period, or intends to get pregnant. Real estate app Realtor.com sends the company the location and asking price of listings viewed by a user, noting which ones were marked as favourites, the Journal said.

Of the 11 apps tested and the findings validated by an outside cyber-security company, not one provided the users of the world's biggest social media platform any obvious way to opt out of having their information sent to Facebook.

The company's gathering of health and financial information violates its own business terms, which stipulate that app developers should not send data that may be deemed sensitive or private.

Apple and Google, owners of the two biggest app stores in the world, do not require applications to tell users with whom data is shared. While users can opt in and out of apps being able to access certain types of information such as their birth date or location, there are no permissions for the data users supplying directly to the apps themselves.

Last week, British members of parliament released a scathing 108-page report on disinformation, calling Facebook a "digital gangster", which "intentionally and knowingly violated both data privacy and anti-competition laws".

The MPs made recommendations in the report, including a code of ethics governing social media companies and creating a regulator with powers to pursue platforms which do not adhere to the code.

Last year, in response to criticism over its data collection practices, Facebook chief executive Mark Zuckerberg said the company would build a tool called “Clear History” so users could view what data Facebook had collected about them from apps and websites, and to delete it from their accounts. The company says it is still building the technology needed to make the feature possible and a timeline on when it will be available is not forthcoming.

In January, Facebook reported record profit of $6.88 billion for the fourth quarter of 2018, up 61 per cent from the year-ago quarter, and its earnings per share climbed 65 per cent from the year-earlier period.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Company profile

Name: Thndr

Started: October 2020

Founders: Ahmad Hammouda and Seif Amr

Based: Cairo, Egypt

Sector: FinTech

Initial investment: pre-seed of $800,000

Funding stage: series A; $20 million

Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC,  Rabacap and MSA Capital

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Company profile

Name: Steppi

Founders: Joe Franklin and Milos Savic

Launched: February 2020

Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year

Employees: Five

Based: Jumeirah Lakes Towers, Dubai

Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings

Second round raised Dh720,000 from silent investors in June this year

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Fines for littering

In Dubai:

Dh200 for littering or spitting in the Dubai Metro

Dh500 for throwing cigarette butts or chewing gum on the floor, or littering from a vehicle. 
Dh1,000 for littering on a beach, spitting in public places, throwing a cigarette butt from a vehicle

In Sharjah and other emirates
Dh500 for littering - including cigarette butts and chewing gum - in public places and beaches in Sharjah
Dh2,000 for littering in Sharjah deserts
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