Facebook admits Instagram password leak
Facebook (FB) has recently discovered that millions of Instagram user passwords, which should have been encrypted, were stored in a plain readable format on some of the company’s internal systems. The security breach was disclosed in a March 21 blog post, where the social media giant stated that ~600 million Facebook users may have been affected.
Facebook has reportedly since resolved the issue. It stated that the leaked passwords were not misused and that it would notify users if their passwords were affected.
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At the end of June 2018, Facebook’s photo-sharing platform, Instagram, reached 1 billion users. Currently, Instagram Stories has 500 million daily active users.
Facebook’s user growth
Facebook’s user base is growing sluggishly due to data breach scandals and other privacy issues. Its DAU (daily active user) count grew just 2% sequentially and ~8.5% year-over-year to 1.52 billion in the fourth quarter. In comparison, Snap’s (SNAP) Snapchat had 186 million DAUs at the end of the fourth quarter, flat from the preceding quarter, and Twitter (TWTR) reached 126 million DAUs.