{"id":3902,"date":"2018-04-03T10:03:39","date_gmt":"2018-04-03T10:03:39","guid":{"rendered":"https:\/\/www.surveycrest.com\/blog\/?p=3902"},"modified":"2018-12-17T06:52:40","modified_gmt":"2018-12-17T06:52:40","slug":"facebook-cambridge-analytica-controversy","status":"publish","type":"post","link":"https:\/\/www.surveycrest.com\/blog\/facebook-cambridge-analytica-controversy\/","title":{"rendered":"Privacy Matters: How The Facebook-Cambridge Analytica Scandal Affected Facebook\u2019s Worth"},"content":{"rendered":"<p>It&rsquo;s always fun to  share your life with your friends over social media until you realize that each  and every move you&rsquo;re making is kept under observation \u2013 which means no privacy  at all.<\/p>\n<p>Facebook \u2013 with 2.2  billion monthly active users \u2013 has encountered an abysmal fall that has  affected millions across the globe.<\/p>\n<p>It&rsquo;s all over the  news: Facebook&rsquo;s privacy concerns rise all over the globe as a data of about 50  million users was accessed by a political organization, Cambridge Analytica,  which is said to have aided Donald Trump to win the US presidential elections.<\/p>\n<p align=\"center\"><iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/Q91nvbJSmS4\" frameborder=\"0\" allow=\"autoplay; encrypted-media\" allowfullscreen><\/iframe><\/p>\n<h2>How It All Started?<\/h2>\n<p>Since Facebook swears by its privacy control and management, how did this political agency accessed the data so easily?<\/p>\n<p>The data was collected via a third party <a href=\"https:\/\/www.surveycrest.com\/survey\/selection\" target=\"_blank\"><strong>survey application<\/strong><\/a> \u2018thisisyourdigitallife\u2019 that used the Facebook platform. It used the API to extract data from the friends\u2019 list of the 270,000 people who participated in the survey.<\/p>\n<p>The Cambridge Analytica breached Facebook\u2019s privacy rules and stored the data despite Facebook\u2019s request to delete it in 2015. According to Chris Wylie, the co-founder of Cambridge Analytica who left the organization in 2014, this political consultancy firm used that data to develop methods for voter influence in 2016.<\/p>\n<p>Wylie also claimed that the data was used to develop virtual profiles of people by accessing their psychographic data, so they may be delivered promotional content for Trump\u2019s selection.<\/p>\n<p>Whether Facebook leaked user data to that political organization or not, it confronted more questions regarding the transparency of its privacy policy and third-party data usage.<\/p>\n<p>In fact, 59% of the 4217 people, who participated in a recent CB Insight poll, regarded Facebook as a \u2018net negative\u2019 for the society in the coming 10 years.<\/p>\n<p><strong>Smell Some Controversy in American Presidential  History? Get to Know the <\/strong><a href=\"https:\/\/www.surveycrest.com\/blog\/15-controversial-american-presidents\/\"><strong>15 Most Controversial American Presidents  of All Time<\/strong><\/a><strong>!<\/strong><\/p>\n<h2>Facebook And Zuckerberg Receive Massive Fiscal Backlash<\/h2>\n<p>After the announcement made by the US Federal Trade Commission (FTC), the New York Trading witnessed a fall of 3.2% to $167 in the Facebook shares in New York, which was followed by a drop of 6.8% on Monday, March 19.<\/p>\n<p>Although Facebook\u2019s founder and CEO, Mark Zuckerberg admitted the company\u2019s failure to protect people\u2019s privacy, the company lost its market value of about $50 billion in stock shares within two days of the fiasco.<\/p>\n<p>As the controversy hit the Facebook\u2019s market shares, the CEO, who enjoys his wealth from the Facebook stock of 403 million shares, also lost 10 billion dollars amid the Facebook crisis week.<\/p>\n<p align=\"center\"><iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/players.brightcove.net\/293884104\/SJa0Thl7_default\/index.html?videoId=5755104768001\" allowfullscreen frameborder=\"0\"><\/iframe><\/p>\n<p>Let\u2019s admit: the Facebook-Cambridge Analytica controversy has given a hard time to both Facebook and Zuckerberg. After the Cambridge Analytica news spread like wildfire, Zuckerberg had lost 6.06 billion dollars at the week\u2019s start.<\/p>\n<p>Due to the controversy, Zuckerberg\u2019s net worth went down from 74.8 billion dollars to 67.3 billion dollars, according to Bloomberg. However, he ranks seventh among the richest people in the world. Zukerberg is also said to own about 70 billion dollars of Facebook shares.<\/p>\n<p>Now that the controversy became an amalgam of confusion, insecurity, deceitfulness, and rage, Facebook decided to debar Cambridge Analytica for its use of 50 million user data.<\/p>\n<p>This scenario demanded some action from the Cambridge Analytica, which refuted the claim of having used the data for Trump presidential campaign. And hence, suspended its CEO Alexander Nix.<\/p>\n<p>However, Zuckerberg came forward and addressed the issue by publishing statements on Facebook and welcomed interviews regarding the incident and its prevention.<\/p>\n<p align=\"center\"><iframe loading=\"lazy\" width=\"560\" height=\"280\" sandbox=\"allow-scripts allow-same-origin\" layout=\"responsive\" frameborder=\"0\" src=\"https:\/\/www.facebook.com\/plugins\/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fzuck%2Fposts%2F10104712037900071\"><\/iframe><\/p>\n<h3>Related: <a href=\"https:\/\/www.surveycrest.com\/blog\/should-we-make-friends-online\/\" target=\"_blank\">Friendship In A Digital World: Should We Make Friends Online?<\/a><\/h3>\n<h2>What Is Being Done About The Controversy And The Privacy Rights?<\/h2>\n<p>From what it seems, Facebook is surrounded by a never-ending dilemma of Russian fake profiles and rumors, to which the Cambridge Analytica has added more burden. It\u2019s also been noticed that the investors are also selling shares since the company went down by 8% since Friday.<\/p>\n<p>Now that the scandal has surged to the public eye, the FTC is investigating Facebook\u2019s violation of 2011 consent order regarding user data and its transfer to the Cambridge Analytica without user knowledge.<br \/>\nIf the FTC finds Facebook\u2019s lack of adherence to the consent decree, Facebook can be charged with thousands of dollars per day for violation.<\/p>\n<p align=\"center\"><iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/8_5eW4NEhYc\" frameborder=\"0\" allow=\"autoplay; encrypted-media\" allowfullscreen><\/iframe><\/p>\n<p>Senators Amy Klobuchar and Jon Kennedy in the US Congress have requested a law proceeding to investigate Facebook and Cambridge Analytica\u2019s links. The Republican leaders of the Senate Commerce Committee also have written a letter to the Facebook\u2019s CEO, questioning the data collection.<\/p>\n<p>Moreover, a British Parliament Committee summoned Mark Zuckerberg, via a written letter, to delineate the link between Facebook and Cambridge Analytica.<\/p>\n<p>As for Cambridge Analytica, it stated that it would support full and independent investigation of the incident.<\/p>\n<h2>What\u2019s Next?<\/h2>\n<p>As the stocks for Facebook fell, its controversy continues to attract the attention of the lawmakers. There\u2019s an outcry for the regulation of a social media site that has exceeded its boundaries.<\/p>\n<p>However, many analysts report that despite the fall in Facebook shares in the market, 90% of the brokers bet on \u2018buying\u2019 Facebook shares.<\/p>\n<p>The reason? Several analysts believe that Facebook can overcome the challenge as its current controversy might not impact its long-term prospects. Moreover, Facebook has gathered a massive data of 2 billion users worldwide, which makes this social network giant excel the competition.<\/p>\n<p>Whether the world has witnessed a dark side of Facebook or is it Facebook turning over a new leaf? Will people\u2019s calls and text messages be safe from the political reach? Does Facebook deserve a second chance or not?<\/p>\n<p>Now\u2019s your turn to decide!<\/p>\n<p><strong>Stat Sources:<\/strong><\/p>\n<p><small><\/p>\n<ul>\n<li>https:\/\/www.statista.com\/statistics\/272014\/global-social-networks-ranked-by-number-of-users\/<\/li>\n<li>https:\/\/www.nytimes.com\/2018\/03\/17\/us\/politics\/cambridge-analytica-trump-campaign.html<\/li>\n<li>https:\/\/techcrunch.com\/2018\/03\/26\/ftc-confirms-probe-into-facebook-data-misuse-scandal\/<\/li>\n<li>https:\/\/www.cbinsights.com\/research\/facebook-fares-very-poorly-in-this-survey\/<\/li>\n<li>http:\/\/time.com\/5206941\/facebook-ftc-investigation-cambridge-analytica\/<\/li>\n<li>https:\/\/www.recode.net\/2018\/3\/20\/17144130\/facebook-stock-wall-street-billion-market-cap<\/li>\n<li>http:\/\/fortune.com\/fortune500\/facebook\/<\/li>\n<li>https:\/\/www.cnbc.com\/2018\/03\/19\/facebooks-slide-cost-mark-zuckerberg-6-point-06-billion-in-one-day.html<\/li>\n<li>https:\/\/www.bloomberg.com\/billionaires\/profiles\/mark-e-zuckerberg\/<\/li>\n<li>https:\/\/qz.com\/1238394\/facebooks-stock-is-still-worth-buying-according-to-90-of-analysts\/<\/li>\n<li>https:\/\/www.nytimes.com\/2018\/03\/19\/technology\/facebook-cambridge-analytica-explained.html<\/li>\n<li>http:\/\/money.cnn.com\/2018\/03\/19\/news\/companies\/zuckerberg-net-worth\/index.html?iid=EL<\/li>\n<\/ul>\n<p><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It&rsquo;s always fun to share your life with your friends over social media until you realize that each and every move you&rsquo;re making is kept under observation \u2013 which means no privacy at all. Facebook \u2013 with 2.2 billion monthly active users \u2013 has encountered an abysmal fall that has affected millions across the globe. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3903,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[328],"tags":[],"class_list":["post-3902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hot-and-trending"],"_links":{"self":[{"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/posts\/3902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/comments?post=3902"}],"version-history":[{"count":18,"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/posts\/3902\/revisions"}],"predecessor-version":[{"id":4205,"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/posts\/3902\/revisions\/4205"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/media\/3903"}],"wp:attachment":[{"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/media?parent=3902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/categories?post=3902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.surveycrest.com\/blog\/wp-json\/wp\/v2\/tags?post=3902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}