business

Mismanagement of information can harm the company internally and externally.

Facebook

Facebook Scandal

We are all aware of the fact that an Antivirus or firewall is not enough to protect organizations’ information. Furhtermore, the amount of cyber attacks is increasing and hackers’ techniques are becoming more and more sophisticated.

Nonetheless, poor security management negatively affects a company’s reputation. This leads to a series of never-ending consequences which can even result in the business closing down.

A clear example of information mishandling is the latest “Facebook scandal”.


facebook and cambridge analytica

Cambridge University profesor Alexandr Kogan developed an app (“This is your digital life”) capable of accessing users’ personal information through social media (Facebook). The app’s main goals were academic, but the reality was different. Said information was shared with Cambridge Analytica, and it helped influence voters during the US Presidential Elections in which Donald Trump was chosen president.

However, Facebook’s privacy policy warns its users about the fact that personal information can be compilled for as long as necessary in order to improve advertising services and systems.

This is the reason why Facebook shares this data with third-party apps and websites on its platform. The companies part of this social media site can acess generic data or more specific information. This could have been the case with Kogan’s application. What action will Facebook propose to solve it? And what are the consequences of this scandal?

Consequences of Facebook crisis

The scale of the problem results in a huge crisis for Facebook. Mark Zuckerberg apologized to all users on the platform. These apologies were not enough to disassociate himself from the political, social and economical consequences.

Crisis

In the economic sense, the platform’s stock dropped a 14%, which affected the whole U.S. Stock Market (NASDAQ).

On the other half, if Facebook’s data protection law violation can be proven, the company faces a 2 trillion dollar fine.

This case is the perfect example of how a por management of information can affect a whole organization, not only on an economic level but also regarding the trust people place on the company. With this in mind, R3 CyberSecurity encourages businesses to be aware of how careful we have to be with information security and employee cybersecurity awareness.

At R3 CyberSecurity we believe these aspects can guarantee a solid commitment from the entire company.

Valeria Zambrano | Administration en R3 CyberSecurity