How To Protect Your Reputation On Social Media

Transcription

1 SOCIAL MEDIA AND ONLINE FRAUD WELCOME TO: Social Media and Online Fraud: Protecting Yourself and Your Organization Please dial to connect to the audio portion of this webinar. Please note this call will be recorded 1

2 Social Media & Online Fraud: Trends, Tips and Best Practices For Dealing With Online Fraudsters Gina Durham

3 Social Media What are we talking about? No single or uniform definition of what it means. Our definition: online or web-based technologies, tools and platforms that allow for the creation and exchange of usergenerated content in a social setting. Includes: Social networking sites such as Facebook, Linked In, MySpace, and Twitter Blogging sites, including blogs on commercial news and other sites. Wikis Video content sharing sites such as YouTube and Flickr Social news sites such as Digg or Reddit 3

4 Social Media Fast Facts Facebook over 500 million users Twitter over 200 million users U.S. Dept. of Justice reported total online fraud losses of almost $560 million in 2009, more than doubled from 2008 (based on complaints received by Internet Crime Complaint Center) 4

5 Risks Posed by Explosion of Social Media Various Frauds and Impersonations Scams that can damage your reputation Scams that can harm your customers Challenges of user-generated content on company websites, or company-sponsored websites 5

6 Special Challenges Posed by Social Media Anonymity for the fraudsters Ability to know their victims access to individual data on a massive scale Interoperability Multiplies Challenges Tweet a message including a trademark infringement Retweet on Facebook Retweet on Linked-In Retweet on Blogger Blogger content republished via RSS on several sites RECYCLING OF HARMFUL CONTENT, VIRAL SPREAD 6

7 Specific Challenges Brandjacking Fraudsters take advantage of your brand to gain trust and make money Prevalent in social media because it is easy to set up accounts and find an audience scams targeting users of social media sites Unauthorized promotions Attempts to gather sensitive personal information Malicious software that infects victim s PC and steals passwords Phishing attacks using information on social networking sites Gripe pages and false and/or harmful user generated content 7

8 Examples of Recent Scams WHOLE FOODS $500 Gift Card Phishing Scam Fake Facebook Pages 8

9 Examples of Recent Scams Fake Facebook Pages Click on Like button, attempt to steal Facebook password 9

10 Examples of Recent Scams Impersonation on Twitter St Louis Cardinal s Manager Tony LaRussa case Trend- impersonation of company executive speaking on behalf of company 10

11 Examples of Recent Scams Social media-linked Ponzi scheme, in which scam artists use YouTube, Twitter and Facebook to promote investment opportunities with the promise of unrealistically high returns. Fake Blogging 11

12 Best Practices & Preventative Measures Preemptively register trademarks and common variations on major social media websites Educate your consumers/users & provide a means of authentication How do they know they are really communicating with you How do they know it is an authorized site, page, etc. Establish guidelines as to who is authorized to post on behalf of the brand and how they must identify themselves Drive traffic to and from the company s authorized website Monitor venues for abuse 12

13 Combating Scams On Social Media Outlets Educate Your Customers-How do they know it is really you? 13

14 Combating Scams On Social Media Outlets Quick Action Take advantage of Take Down Policies Twitter Impersonation Policy Pretending to be another person or entity Submit a ticket to Twitter Trademark Policy Using a company or business name, logo, or other trademarkprotected materials in a manner that may mislead or confuse others or be used for financial gain may be considered a trademark policy violation. 14

15 Combating Scams On Social Media Outlets 15

16 Combating Scams On Social Media Outlets Facebook Trademark/Copyright Notice of Intellectual Property Infringement (copyright) and (noncopyright) Remedies- Remove/Disable Content, but will also contact poster Poster s ability to appeal Facebook Impersonation Go to the impostor profile and click "Report this Person" in the left column. Check the "Report this Person" box, choose "Fake Account" as the reason, and add "Impersonating me or someone else" as the report type. Facebook Phishing Issues Go to the Security Page and report a phished account 16

17 Combating Scams On Social Media Outlets Report to Authorities/Law Enforcement Report to Other Relevant Organizations Better Business Bureau or by calling FINRA 17

18 Combating Scams On Social Media Outlets Take Civil Action In Appropriate Situations Importance of investigation Understand the challenges and objectives Subpoenas Defendants outside U.S. Secondary liability Deterrence objectives Injunctions Statutory damages 18

19 Combating Scams On Social Media Outlets Helpful Legal Theories Federal Statutes Lanham Act, 15 U.S.C and 15 U.S.C. 1125(a) Counterfeit Mark? Anti-Cybersquatting Consumer Protection Act, 15 U.S.C. 1125(d) Computer Fraud and Abuse Act, 18 U.S.C Unauthorized access or exceeds authorized access Requisite showing of compensable loss Von Holdt v. A1 Tool Corp, 2010 U.S. Dist. Lexis (ND IL May 17, 2010) (damage, impairment, or interruption of services required) Copyright RICO 19

20 Combating Scams On Social Media Outlets Helpful Legal Theories State Laws State Anti-Spam Laws Right of Publicity Laws Breach of Contract Trespass Fraud 20

21 Combating Scams On Social Media Outlets Legislative Progress--More help on the way? Utah E-Commerce Integrity Act California SB 1411 Criminal E-Personation Previous Snowe Bill 21

22 Company Criticism- What to do about a Gripe Page Sometimes there are trademark, defamation, or other objections to be made against a gripe page BUT Use a rule of reason before asserting such claims Will taking action create more attention for the criticism than having simply ignored it? Anecdote-- Mr. Kurtz s Facebook page Kalamazoo Residents against T&J Towing T&J took action which resulted in thousands of followers to the gripe page and a story in the NY Times Careful Fair Use, Privileges and First Amendment Protections May Apply 22

23 Unauthorized Use of Company Web Forums Dealing with User Generated Content Mitigating Risks First Line of Defense: Terms of Use, House Rules, etc. Williams v. Life s Rad, 2010 U.S. Dist. LEXIS (N.D. Cal. May 11, 2010) Terms of Service and user agreement that reserved right to removed content plaintiff considered infringing or otherwise objectionable in its sole and absolute discretion online provider held not liable for removal of user content Put them on your Facebook page too! Communications Decency Act Immunity Note --Company is acting as ISP when it creates a website that interacts with the public and allows public comment or posting. 23

24 Unauthorized Use of Company Web Forums Tips for Successfully Enforcing Terms of Use Under Breach of Contract Carefully drafted terms of use Enforceability of click wrap and browse wrap form of assent Major v. McCallister, 302 S.W.3d 227 (Mo. Ct. App. Dec. 23, 2009) Notice Demand Letter enclosing Terms of Use Plausible Damage Claim Damage to Computer Systems Reputational Damage Lost Revenue/Sales Opportunities due to diversion 24

25 Unauthorized Use of Company Web Forums Communications Decency Act - Best Practices Trends Communications Decency Act (47 U.S.C. 230) No Section 230 immunity if responsible in whole or in part for the creation of development of information provided through the Internet or any other interactive computer service. Immunity preempts challenges based on state and local laws (but not challenges based on IP) Key Distinction ISP that allows access by multiple users (receive immunity) or ISP that provides content and retains responsibility for the creation or development of information provided through the internet (no immunity) 25

26 Unauthorized Use of Company Web Forums Communications Decency Act (47 U.S.C. 230) Cases Doe v. Sexsearch.com, 502 F.Supp.2d 719 (ND OH 2007) Website simultaneously acts as interactive computer service and information content provider Critical issue whether site was acting as information provider on information plaintiff claims is false Barnes v. Yahoo! Inc., 570 F.3d 1096 (9 th Cir. 2009) Plaintiff survives CDA immunity for claim against web site operator for defamatory content posted by third party Separate promise by Yahoo! employee to remove false profiles (act was a separate undertaking beyond publisher of profiles) DO NOT make a promise you cannot keep 26

27 Unauthorized Use of Company Web Forums Communications Decency Act (47 U.S.C. 230) Cases Doctor s Associates v. QIP Holder LLC, 2010 U.S. Dist. LEXIS (D. Conn. Feb. 19, 2010) Quizno s v. Subway Video Contest MCW v. Badbusinessbureau.com, 2004 U.S.Dist. LEXIS 6678 (ND Tex April 14, 2004) Actively soliciting disparaging materials, defendant went beyond publisher s role and incurred responsibility for the information developed and created by consumers The CDA "does not require a court to determine only whether a party creates or develops the information at issue. Being responsible for the creation or development is sufficient." 27

28 Unauthorized Use of Company Web Forums Communications Decency Act (47 U.S.C. 230) Cases Scott P. v. Craigslist (Cal. Super. Ct. San Fran. Cty June 2, 2010) Nemet Chevrolet v. Consumeraffairs.com, 564 F.Supp.2d 544 (E.D. Va. 2008) Fair Housing Council of San Fernando Valley v. Roommates.com, LLC, 521 F.3d 1157 (9th Cir. 2008) Chicago Lawyers Committee for Civil Rights Under the Law, Inc. v. Craigslist, 519 F.3d 666 (7 th Cir. 2008). 28

29 Social Media Monitoring Interesting Links and Emerging Vendors Search engines to locate damaging content icerocket.com (searches blogs, Twitter, MySpace, news and images) Google.com/alerts (alerts for use of company names and brands on blogs, the Web, news, videos and discussion groups) technorati.com (searches blogs) TM.biz (free search to check brands registered as user names at top 500 social media sites) Vendors User Name Watching Content Watching in Major Forums 29

30 Social Media Monitoring Interesting Links and Emerging Vendors Vendors (Con t.) Attensity ( Attentio ( Cision ( Radian ( MarkMonitor, Thomson, Coresearch 30

31 Gina Durham DLA Piper LLP (US) (312)