WHY IT MATTERS: Digital Transformation

Twitter just asked all 300+ million users to reset their passwords, citing the exposure of user passwords via a bug that stored passwords in plain text — without protecting them with any sort of encryption technology that would mask a Twitter user’s true password. The social media giant says it has fixed the bug and that so far its investigation hasn’t turned up any signs of a breach or that anyone misused the information. But if you have a Twitter account, please change your account password now.

These third party login tools promise more traffic, more subscribers, more members, more customers and more sales — and those promises have come true: as some have noted, up to 80% of web users choose Facebook Connect or another social authentication option when it’s available (as opposed to signing up for a site with their email address), and Facebook itself has claimed that social authentication increases registration by 30-200%. (...) But is that promise worth the price of losing direct access to your customers’ contact information and profiling information — or for that matter, direct access to customers themselves?