The biggest scandal in the history of Facebook, $2 trillion in fines, is the collapse of the data empire.

in #news7 years ago

From DEEP TECH

In March 2018, Facebook, the world's largest social network, suffered its biggest crisis since its founding. For a long time, Facebook open API interface to external third-party companies on the Facebook platform to provide psychological test or small game, the move to enrich the content of the Facebook social networking platform such richness, also by user participate in further strengthening the adhesive degree of the social relationship between users. The purely commercial activity seems to be harmless, but because when a data analysis of the company is located in the UK Cambridge Analytica in the case of without the consent of the user, embezzled 50 million users' personal information, and Cambridge Analytica is trump campaign in 2016, employed the data analysis of the company, is used to analysis forecast, and the alleged to social media influence in the election voters operation behavior.

The seriousness of the matter in the United States has spread like wildfire, including Facebook, twitter, Snapchat major U.S. social networking websites such as the company's share price fell in intraday plunge, which Facebook shares tumbled more than 6%, even if finally ended just fell about 2%, but from the development so far, this matter since the weekend in the opening two days this week, Facebook's shares have lost 11.4%, market value is $60 billion in just two days between evaporated.

Over the past two days, Facebook, a large number of users "theft" of data by a third party company events, already rolled into one big snowball scandal, in the United States, Britain and other countries, the FTC, the British parliament has asked Facebook to take the survey, which even, according to the FTC with Facebook in 2011 by the relevant data protection agreement signed, if the incident investigation concluded that Facebook in violation of the agreement, will be fine by as much as $2 million, equivalent to the nearly four times the level in the face book value, and obviously it will doom is enough to make Facebook empire destroyed.

Will happen even if the FTC fine not true, but this matter for Facebook, has evolved into a huge scandal, more importantly, from the United States face time 17 closing data of Cambridge Facebook page, and ban on Facebook all other advertising business activities, Facebook has insisted that its data is not stolen steal user data were leaked, and just be "misuse", but that argument clearly enough to quell doubts, and even anger. Especially so far, Facebook just issued a statement through pr window shows status, and as a company founder, has nothing to do with Mark Zuckerberg of Facebook picture equals sign so far have not any speech, but also sparked outrage.

The key lies in the fact that while Facebook is in the United States time 17 active block activity of Cambridge data on its social platform, and active in Facebook blog account for Cambridge data block, and at the same time also sent letters to various media emphasize this matter not Facebook users information stolen, or even Facebook to protect the user data be cracked. But, in fact, Facebook is not really the whole incident of active voluntary openly in the sunlight, but because of who I am before that is known to have several us media reports will be in the next day the incident, so active rob to take pre-emptive voice. Such practice seems to be clever, but this is thought to have is the world's largest media company with a social media company has made a big mistake, that is when the media reveal Facebook to deal with this matter after operation skill, unexpectedly received a lawsuit threat from Facebook, such practice is oil fire, let the development of the whole incident.

What the hell happened?

The whole thing in a short span of five days, turn to this point, one of the key turning point, from the Cambridge Analytica co-founder Christopher Wylie active disclosure to the guardian, Christopher Wylie told the guardian, Cambridge data company founded as early as 2013, it paid for by American republican billionaire Robert Mercer, and by a former adviser to trump Steve Bannon dominated, Steve Bannon and find Christopher Wylie form data analysis team. At that time, the purpose of the company is very clear, is to through the huge amounts of data analysis, further concluded that operating social public opinion direction, to influence the 2014 congressional election, and the 2016 U.S. presidential election, but then Christopher Wylie found that if you want to do more accurate user behavior prediction, must through the cooperation with experts in psychology and behavior analysis, so he find the cooperation of the university of Cambridge, UK, but at the university of Cambridge has not promised, therefore, Cambridge data to work with individual researchers, which is then psychological measurement center at the university of Cambridge university Aleksandr Kogan.

Pictured: Alexander Nichols, CEO of Cambridge Analytica.


In Aleksandr Kogan after joining, he developed the "this is your digital life" psychological quizzes, the psychological test of this type are very common in the social media platforms such as Facebook, users can through participating in such a psychological test, an interesting result, the user can choose to share in his Facebook page, which attract attention of other Facebook friends, or even follow up. In fact, in addition to such psychological tests, there are more small games or apps on social platforms, and data on user behavior in the same way.

By Aleksandr Kogan developed by this kind of psychological test, a total of 270000 people to participate in, and provide the relevant data in the process, and through this quiz the extending connection network and get up to 50 million Cambridge data to further expand the user data, then based on these data, built the psychological and behavior analysis model, including character inclination, life satisfaction, political views, or even individual be fond of and so on the available information index results. It is important to note that the original "is this your digital life" to the Facebook for approval, in the name of academic research application, while Facebook did not pursue after the audit checks, tracking the flow of the obtained data use, whether accord with the original application, the purpose of making this batch of data flow to the hands of Cambridge analysis finally, used to reach voters behavior research analysis, and then create operation can be achieved the purpose of the public opinion direction, affect the election results.

Graph: Cambridge company diagram.


To the guardian newspaper reported the incident Christopher Wylie was previously left Cambridge analysis, according to his own, because see the data from abuse, social media users, in turn, affects the consequences of social condemned by its own conscience, therefore prefer to bear the liability for violation of confidentiality, must also reveal this matter to the world and, more importantly, Christopher Wylie believes that the whole incident is the most horrible place, not only is the data were leaked risk problem, but with 2 billion users data check Facebook knows this matter from beginning to end.

On March 21, 2018, the company held a question and answer session, internal employees elaboration about on Friday reported closely associated with the trump of the data analysis of Cambridge companies abuse Facebook users data events. This is the first time the company has held a related seminar since the incident. But according to The Daily Beast, Facebook CEO Mark Zuckerberg didn't attend The meeting.

The snowball effect is just beginning.

It's been two days since the storm in American society has exploded, but it's just beginning. Even if Zuckerberg  comes out and apologizes today, there's no way to stop the snowball from rolling on. Because in addition to the U.S. presidential election, in a previous Britain from the European Union (Brexit) referendum, Cambridge Analytica also is suspected by the British government may be involved, and thus began the investigation, the British parliament to require Facebook founder Mark Zuckerberg  to attend the hearings.

In fact, Facebook's 2 billion users throughout the world, its influence already is to get the governments to control by keeping close watch of the risks, from elections to terrorist attacks, and so on, Facebook has been frequently mentioned risk source of data information.

It is important to note that there are data about risk the problem, in the past 20 years of development of the Internet continues to be mentioned is a very serious problem, and it has been put forward that would be enough to destroy the Internet plays an important role in human society major crisis. But over the years, from the Internet, big data, by now, artificial intelligence, data information in the human society the application of science and technology is playing an increasingly important role, more and more personal data be exposed through different tools in different places, on the user's knowledge or unwittingly be used, but the data security problem, but still didn't get a sufficient to achieve consensus on the solution, so far as to say that every time a major data security risk events, finally are the methods of patch type, in the face of such as unable to count the huge amounts of data to continuously, patch type data security protection technology or solution, is just a temporary comfort themselves.

Data is seen as a new era of oil, especially to use the benefits of big data, artificial intelligence, a premise is you need to use large amounts of data, however, data collection, and access is easy to involve the problem of legitimacy, there are many more operators to wander in the edge of the invasion of privacy means to use these data, so the European parliament in April 2016 through the European Union general data protection regulations (GDPR), will be science and technology of the information protection content included, and GDPR is within 2 months after the official on the road.

And GDPR is referred to as the most stringent in the history of information law, one is to protect the capital category is large, in addition to protect the people personally identifiable information (PII), the more specific "all or part of the" to "automatic mode" collection, processing or use of personal information are included, such as cookies, IP position, GPS positioning, etc., all belong to one of the new protected GDPR information content.

Another reason is the most heavy fines, when enterprises or organizations were leaked the European people's personal information, confidential business or organization must be notified within 72 hours Data Protection Authority, an information leak plot is light person, may be fined 10 million euros or 2% global turnover as a fine; In the case of a serious offense, a fine of 20 million euros or 4 percent of global turnover was imposed.

An amazing 50 million users and Facebook the outbreak data were leaked, unfortunately met GDPR is about to hit the road, the eu data protection commissioner Joe, scheduled visit to Washington this week, will also with Facebook, U.S. commerce secretary Ross this problem, the European commission has required set up a task force to investigate Facebook. The incident is also regarded as a key, social platform, even the company's future artificial intelligence have to be alert, because according to GDPR, when a company must take the form of a "clear and understandable language" to the user request.

The Facebook event in the United States has been known as the "Data Scandal" , the whole incident is burst everyone don't want to for a long time to face the truth, and is all people know the fact that, but he did not speak out, but when the object is stabbed out with 2 billion users, and is considered to be a discourse has the biggest influence of social media, may affect the impact, will not just several American social media's share price, market value as simple as that. And will be the next to the data resources as the most important driving force of a major challenge in the new economy, when the data is strictly regulate, when a user USES because of fear and resist data resources sharing, is it possible to further economic development of the major data resources crisis, will be very worth observing.