Official Facebook response
As with a lot of new technologies, there has been confusion about how Places works and this is reflected in the article.
For Facebook Places to act as a 'targeting pack for terrorists', MoD personnel would need to actually be friends with the terrorist, as the privacy settings are set to Friends Only by default.
Places users have complete control; before your location is shared you have to actively check in somewhere, or allow your friends to check you in. You can’t be checked in unless you agree to be. We fully support organisations who want to educate their employees about how to use the internet and social networking sites, including Facebook. Whilst there were a few inaccuracies in the MoD guide, such as the claim that Facebook Places is automatically on until it is deactivated, they are clearly not 'labelling' Places as a 'targeting pack for terrorists'. The MoD is, like any responsible organisation, simply providing guidance on how to use these services appropriately.
Places also does not share your location details with third party websites or applications 'by default'. Every time an application needs to access your data - to make it work and give you a better user experience - it must provide a clear set of instructions so you can easily see what information is needed before you accept, just as it would if it wanted to access your photos or friend lists.
For people interested in how privacy on Places actually works, you can see a quick video on how to control your sharing through Places here: http://www.facebook.com/video/video.php?v=10150257497405484&ref=mf#!/video/video.php?v=697692691093
If you want to find out more, visit: http://www.facebook.com/places/
Sophy Silver, Head of PR & Communications, Facebook