I don't feel safe on Facebook

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I like Facebook a lot but I don't feel safe. I just don't know what those applications can do with my personal data. I have a couple of reasons and the last one is the most scary.

1. What does it mean that the application can 'Know who I am and access my information'?

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2. Then as a second step all the apps seem to want to lure me in to getting my friends to get the application as well. Sure it's a social network but come on, I'm only just adding the application myself so how could I be a good referrer? I admit this is less of a security/privacy issue.

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3. I never read the Terms of Use but skimming through there's this:

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AT YOUR OWN RISK! Not so comforting, is it?

4. Then finally, who is checking on these applications? We know Facebook is not but who is? Nobody? This MSN Messenger Application for instance needs me to sign in. So I'm left wondering, is this application using the Microsoft control or is it actually capturing my user id and password to sign in on my behalf at MSN Messenger? How scary is that?!

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Where's the part below that vouches that your credentials go directly to Microsoft Passport?

Microsoft Passport Network Microsoft Passport Network or Windows Live ID Windows Live ID.

Bottom line, I love Facebook but I don't feel safe. I realize I'm late to the party and numerous people (like Scoble and others) have voiced this concern before me.