American Express (AMEX) announced that it will start offering customized discounts to customers, based on their interests. those include interaction on facebook, such as like, friends, and other interests. “Link, Like, Love”, the application of AMEX on its facebook page will allow customers to link their card account with their own pages.
in short, this is going to let facebook build social graph and have it transferred to AMEX. what they are trying to do through this program is to compete with daily coupon deals that became increasingly popular, such as Groupon and Livingsocial.
if AMEX can utilize the social graph obtained through facebook, they can suggest retailers with a new discount and campaign plans. on the retailers side, it becomes easier to track success/failure of each plan they launched.
certainly, credit card company and retailers (and facebook) are getting benefit from such strategy, the question remains on the customers side. discount deals, that is customized based on your online activity is generally attractive offers, but that comes in exchange with even more personal information.
personally, I feel that social media and online services has become normal to our life, to the point that we tend to pay less attention to the security issues. keeping in mind the SONY’s Playstation Network customer info leakage, I feel that risk of such attacks increase when there are more personal information available on social network.
In order for Facebook and AMEX to launch this program successfully, security must be enhanced. given that there are some concerns on facebook’s security, I don’t feel very comfortable connecting my credit card account with my facebook activity.
*Here’s another article that talks about facebook’s security issue, by Eugene Kaspersky