They found that if Friendster had used certain state-of-the-art prediction algorithms, it could have divined sensitive information about non-members, including their sexual orientation. “At the time, it was possible for Friendster to predict the sexual orientation of people who did not have an account on Friendster,”
[….]
The problem Garcia identifies lies in something called “shadow profiles,” and as a consequence, we all could be intimately profiled by the Facebooks and Googles and LinkedIns of the world—whether we agree to it or not.

Garcia says this kind of statistical analysis—essentially using machine learning to study the known tastes and relationships of one person’s contacts, and making a guess about who they are likely to be—could be used to build disturbingly detailed profiles of people who do not even use the social network
[…]
We learned about shadow profiles last year when security researchers at a company called Packetstorm discovered Facebook was maintaining its own files on users’ contacts. For example, if Facebook found two users were connected to a non-member—say, bob@wired.com—it would pool other information—different phone numbers, for example—into one master dossier.

via Not on a Social Network? You've Still Got a Privacy Problem | WIRED.

Adobe’s Digital Editions 4 ebook reader software is collecting detailed information about the reading habits of its users – and sending it back to the company in a format that’s easy for others to slurp.

An investigation by Nate Hoffelder of The Digital Reader blog showed that ADE 4 was collecting telemetry on which pages of ebooks were being read, and in which order. This included the title, publisher, and other metadata, which was then sent to the company’s mothership – a server called adelogs, no less – in plain text over the internet.

via Adobe spies on readers: EVERY page you turn, EVERY book you own leaked back to base • The Register.

So… In the last year, Adobe has lost account details to some 50 million users, has lost its’ source codes to hackers and still doesn’t understand the need for security and privacy?!