The release of Facebook Places has paved way to some privacy issues in the iPhone application. One of the major flaws of Facebook for iPhone users is the default privacy settings, which keep mobile updates public by default.  If there was ever a time to improve the mobile settings around Facebook, it would be now.

Facebook Places is still a new feature, and you can only make the most of your privacy settings if you’re sitting behind your computer screen. This resulted in the release of a newer version of the iPhone app for users to set their privacy settings to a selected few, and to individually tweak each setting to keep personal stuff on the hush-hush. From Facebook:

“…updates include more granular privacy settings, a snappier inbox with support for threads with multiple users, and improved performance when commenting, liking, or posting stories.”

One of the things that have changed in the iPhone app is this small lock icon that appears in the status update box. Clicking the icon will open up a custom Friends list and other settings. You can now choose what specific group on the Friends’ list you would want to inform about your whereabouts. For easier tagging, there’s also an added auto-suggest feature. Navigation is also made easier since tagged profiles and status are now highlighted and shown just like the ones shown in your computer. Clicking them will take you the page.

This exemplifies Facebook’s need to strengthen its mobile security, as another layer is added to the network’s sharing perspectives.  This layering often comes with a few issues, typically voiced by privacy advocates concerned with Facebook’s encouragement of open sharing.  This is yet another instance where Facebook must quickly update its apps to ensure user comfort and participation.

On another mobile front, Facebook has acquired Hot Potato, adding some gaming potential to its new Places patform.