Facebook Patents a Technology That Could Use Your Social Network Against You

Facebook Patents a Technology That Could Use Your Social Network Against You

A picture illustration shows a Facebook logo reflected in a person's eye, in Zenica, March 13, 2015. REUTERS/Dado Ruvic
DADO RUVIC
By Millie Dent

All that data Facebook has been gathering on you and your friends could someday be used to approve -- or deny -- your application for a loan.

Facebook was just granted an updated technology patent for “authorization and authentication based on an individual's social network.” This innocent-sounding technology can no doubt be applied in a multitude of ways, many of them benign. But one troubling use of the technology consists of assisting lenders in discriminating against a borrower based on his or her social network connections.   

The patent application explains that a lender can use the technology to examine the credit ratings of members of the social network of the individual who is applying for a loan. If the average credit rating of the social network reaches a minimum, pre-defined level, the lender moves forward with the loan process. If the average credit score is too low, the loan application is rejected.

Related: Now Facebook Wants to Know Where You Buy Your Toothpaste

The new technology raises concerns about potential unjust bias, but banks would most likely use it as an additional factor in the loan approval process, not as an end-all metric. The Equal Credit Opportunity Act imposes strict guidelines as to what factors creditors can use when determining whether to approve a loan. It’s unclear if Facebook’s new technology falls under the criteria the federal law defines – things like income, expenses, debt and credit history.

Another fear involves predatory lenders. People rejected for loans through this process would make a nice customer list for unscrupulous financial operators.

Some of the less worrisome uses of the technology include preventing spam email and inappropriate content and improving the accuracy of searches. At this point, it’s not clear how Facebook plans to implement the new technology. Let’s hope the social networking giant stays on the sunny side of the street on this one.

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3 Dumb Moves That Can Hurt Your Career

New Line Cinema
By Brian O'Connell, MainStreet

What's the most common way to breach workplace etiquette and curb your career growth, if not derail it altogether?

AccountTemps says employers and staffers don't always see office etiquette the same. But bosses certainly have more leverage in the matter, since they can fire employees who buck the rules, and a company survey finds U.S. chief financial officers are most often bugged by workers "being distracted" on the job (27% of CFOs say so) and "gossiping about colleagues" (18%).

Other top offenses cited by CFOs:

      • Not responding to calls or emails.
      • Being late to meetings, or missing them.
      • Not crediting other staffers when appropriate. 

    Employers and workers may not see the top etiquette breaches equally, but they agree on professional decorum more than they disagree, and the shared message is easy to sum up: "Most jobs today require teamwork and strong collaboration skills, and that means following the unwritten rules of office protocol," says Bill Driscoll, a district president of Accountemps. "Poor workplace etiquette demonstrates a lack of consideration for coworkers."

    Related: Modern Etiquette: Outclassing the Competition

    Of course, the list of workplace professional breaches exceeds the AccountTemps list.

    "I've seen it all," notes Nicole Williams, a workplace consultant and a career contributor to NBC's The Today Show. "Employees who lie on expense reports; who badmouth the company or boss on social media or to clients; proofreading mistakes; missing deadlines. Just to name a few."

    If you do trip up on the job, it's best to be accountable. "If you really screw up, you have to suffer the consequences in silence," Williams says. "Don't protest, don't try and get out of it, and don't put the blame on someone or something else. People will respect you more for owning your mistakes."

    This article originally appeared on Main Street

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    The Lucrative Business of SAT Test Prep Is About to Get Disrupted

    Flickr/Newton Free Library
    By Beth Braverman

    For years, critics of the SAT have claimed that wealthy students who can afford expensive, private test prep courses have a leg up on poorer students without access to such classes. 

    That just changed. Starting yesterday, all students can access free, high-quality online test prep via a new partnership between the College Board, which administers the test, and online course powerhouse Khan Academy, a nonprofit supported by the Bill and Melinda Gates Foundation and Ann and John Doerr among others. The online program will include quizzes, video lessons and personalized lessons. 

    The Official SAT Practice will focus on the recently redesigned SAT, with questions created by the tests’ authors.

    Related: SAT Tests: Another Drain on the Family Budget

    College test preparation is a $4.5 billion business. Private SAT tutors charge in excess of $100 per hour and classes from companies like Kaplan or Princeton Review run about $1,000. And those classes may help. Students from the wealthiest families have average test scores that are more than 300 points higher than students from the poorest families on average, according to the College Board.

    In recent years, more colleges have moved away from the SAT and its competitor, the ACT, as a backlash against the tests have grown. 

    More than 850 schools have made the tests optional for admission, according to advocacy group FairTest, choosing instead to focus on class grades and other factors. A study released last year of undergrads at those schools found no difference in either the GPAs or the graduation rates of students who took the SATs versus those that skipped it.

    Gas Prices This Summer Could Be Cheapest Since 2009

    By Beth Braverman

    Gas prices have been on a tear in recent weeks, hitting a national average this week of $2.75 per gallon, the highest price this year, but they’re poised to fall back down as the summer progresses, according to AAA

    The organization is predicting that the cost of gas could fall to its lowest levels since 2009, which is good news for travelers ready to hit the road. About 60 percent of Americans recently surveyed by AAA said they were more likely to take a long road trip this year is gas prices remain low. 

    While the national average price of gas remains well below $3 per gallon, and 87 percent of U.S. stations are selling gas for below that benchmark, consumers out west and in Hawaii are paying more. Prices in California are highest at $3.30, followed by Hawaii ($3.70) and Nevada ($3.30). 

    Related: Gas Prices or Economy, Experts Disagree on What Drives U.S. Demand 

    The average price for a gallon of gas last month was $2.69 per gallon, nearly a dollar less than the $3.66 it cost last May. Economists have been hoping for months that low energy prices would boost consumer spending, but Americans have been choosing to sock away their extra cash rather than spending it. 

    Personal spending was basically flat in April, falling less than 0.1 percent despite a slight increase in personal income. At the same time, the savings rate increased from 5.2 to 5.6 percent.

    Millennial Women are Taking Charge—at Work and at Home

    iStockphoto
    By Jennifer Liu, LearnVest

    According to a recent report from U.S. Trust, women at the top of the earnings ladder are not only making strides in the workplace, but they’re also taking charge of their households’ finances at higher rates.

    The national survey of 640 adults found that among high-net-worth individuals—defined as those with at least $3 million in investable assets—30% of Gen Y women are breadwinners in their households, and another 21% contribute the same amount of income to the household as their partners.

    Perhaps even more surprising? That’s true for Millennial women more than any other demo.

    Related: How Millennials Could Damage the U.S. Economy

    Compare that to the 11% of Gen X women and 15% of Baby Boomer women who earned more than their husbands.

    Likely a result, young women have a greater influence over their family’s money decisions than ever. Among today’s high-earning female Millennials, 31% are the primary decision-makers when it comes to their household’s wealth and investment planning. That’s considerably more than the 11% of Gen Xers and 9% of Boomer women who can say the same.

    Of course, these role changes don’t just affect women. As moms continue to earn more, about one in four Millennial fathers are more likely to be the primary caretakers of their children—a striking difference from the 7% of Gen X and 3% of Boomer dads who’ve undertaken the same responsibility.

    When Will the Consumer Spending Surge Finally Happen?

    iStockphoto
    By Yuval Rosenberg

    Economists have been waiting for a surge in consumer spending fueled by savings at the gas pump and a stronger job market boosting personal incomes. They’re going to have to keep waiting.

    The Commerce Department on Monday said personal spending was essentially flat in April —it fell less than 0.1 percent — even as personal income rose a better-than-expected 0.4 percent. Americans made more money in April but they didn’t spend more. Instead, they socked it away, raising the savings rate — personal savings as a percentage of disposable income — from 5.2 percent in March to 5.6 percent in April.

    Related: How Obamacare Could Be Squeezing Consumer Spending​​ 

    The April spending picture was the reverse of that from March, when incomes growth stalled but spending rose. Overall, though, Americans still look to be hesitant about opening up their wallets.

    “This report clearly indicates that the bounce back in March did not continue into April,” Chris G. Christopher, Jr., director of consumer economics at HIS Global Insight, said in a note to clients. “It is becoming blatantly obvious that the so-called consumer gasoline price dividend is not motivating the average American household to increase their discretionary spending in any meaningful manner.”

    Energy prices have risen lately, but they are still down 20 percent from where they were a year ago, notes PNC Senior Macroeconomist Gus Faucher. Eventually, that should still translate to more spending as long as the job market recovery continues apace.

    “Clearly, consumption is hardly booming, but the lag between declines in gas prices and the response in the spending numbers is long, typically six or seven months,” Ian Shepherdson, chief economist at Pantheon Macroeconomcs, said in a note to clients. “Gas prices did begin to fall rapidly until November, with the biggest single drop in January, so we don't expect to see consumption accelerate properly until the summer.”

    For now, the economists — and the economy — keep waiting.

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