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Big Privacy Problems of Facebook?

I have not verified any of this and would be interested to hear if others have.

XNEWS from rixstep says:

Get this: they want to help you find your friends on Facebook. That’s nice of them, isn’t it? So what do you do? Easy.

You go to their contact page and give them your webmail account name and password. And then they log into your account, pluck up all the contact addresses you have in there, and then walk out without touching a thing.

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