Tuesday, 20 March 2018

#DeleteFacebook: Facebook value plunges $37 billion following news of misuse of User Data

Facebook’s stock value dropped 7%, wiping $37 billion off its market value, after news of the misuse of user data.

Facebook had in a blog post revealed it was suspending Cambridge Analytica, a political data analytics firm that worked on ads for Donald Trump‘s 2016 elections campaign.

The company had lied about deleting data sent to it by the makers of a popular psychology test app, “thisisyourdigitallife.”

About 270,000 had registered to use the app created by University of Cambridge psychology professor, Aleksandr Kogan, Facebook wrote, who then passed their information and the information of friends whose privacy settings allowed it to Cambridge Analytica.

The data gotten was used to target ads for Donald Trump, CNBC reported.

Upon news of the misuse of the data, the company’s value dropped $37 billion, with a social media campaign to #DeleteFacebook trending.

British privacy regulators are also seeking a warrant to search the offices of Cambridge Analytica, following reports the misuse of user data.

In the U.S., members of Congress has also called on Facebook CEO Mark Zuckerberg to testify about Facebook’s actions.

Facebook said on Monday it had hired forensic auditors from the firm Stroz Friedberg to investigate and determine whether Cambridge Analytica still had the data.

Also on Monday, a source said that Facebook head of security, Alex Stamos, plans to leave the company over disagreements about the company’s policies on misinformation.

He had been a strong advocate for an aggressive approach to alleged Russian activity on the platform aimed at manipulating elections.

His departure was first reported by the New York Times. Facebook declined immediate comment.

In a tweet, Stamos did not deny he was leaving but said: “Despite the rumors, I’m still fully engaged with my work at Facebook. It’s true that my role did change.”

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