Social networking site Tagged.com stole the identities of 60 million people and may have spammed even more, according to New York Attorney General Andrew Cuomo. He announced that he plans to sue the site that claims to be the third largest social networking site in the country.
This is how the email and identity theft allegedly worked, as described in the Christian Science Monitor:
Tagged made their invitational emails appear to have been sent directly
from members’ personal email accounts, instead of from Tagged.com. The
emails falsely stated that “[name] sent you photos on Tagged.” If a
member had added a personal image to the website, Tagged also included
that picture in these fraudulent email solicitations. Many consumers
were unaware that Tagged accessed their email contact lists, stated blog Pogo Was Right.
It was also reported that in order to see the photos, Tagged
required you to create a Tagged account, which would grow its
membership list. Under the right circumstances, Tagged could then access the new member's address book and repeat the cycle.
"Consumers had their privacy invaded and were forced into the embarrassing position of having to apologize to all their email contacts for Tagged’s unethical – and illegal – behavior. This very virulent form of spam is the online equivalent of breaking into a home, stealing address books, and sending phony mail to all of an individual’s personal contacts. We would never accept this behavior in the real world, and we cannot accept it online,” stated the Attorney General's office.
Tagged offered an apology on its blog site and stated:

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