Facebook is one of the largest tech giants today, next to Google and Amazon. It has also had a history of data misuse & data breaches, the Facebook-Cambridge Analytica data breach, when millions of people's data was harvested without consent and used for political advertising.
Currently, as of 2019, Facebook has updated it's policies on personal data & how its processed. Facebook states that there is some personal data that you provide them, like metadata, usage (how long you're on, what you use Facebook for, etc), your network & connections (such as the people you interact with), and any financial transactions between the user and Facebook.
The data that Facebook collects are your device attributes, device operation (as in which windows are running, and how your mouse is moving across the screen), device identifiers like ID numbers (as well as any other number that can be used to identify your device), network connections (your ISP (internet service provider), network SSID, and other devices connected to your network), and your devices Bluetooth and WiFi signals.
Facebook claims to use this data to provide you with a personalized experience, help business analytics and other business services like advertising, and to promote online safety. Instagram does has all of the same policies since Instagram is owned by Facebook.
Believe it or not, this is only a fraction of the data that is being collected. If you have a smart home, and the devices on your network are known to Facebook, that poses a very high security risk. Facebook promises that they do not use this data for anything besides these purposes, however there have been some misuse cases, like the one in early 2018.
Facebook needs to be able to promise to it's users that their data is safe. If they can't, or continue to break this "promise", all of our data will be everywhere.
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