The Facebook Cambridge Analytica data scandal has garnered attention worldwide for helping to spotlight a very real problem with data privacy on the Internet. CPO Magazine will be providing ongoing coverage as we believe this to be a pivotal moment which will shape the future of how tech companies use consumer data.
Data Privacy
Technological development has always outpaced privacy concerns, but never more so than in the past decade. Collection and centralization of personally identifiable information (PII), tracking of movements and digital surveillance are all at unprecedented levels. Regulations and laws are only just beginning to catch up to the ability of both governments and private entities to deploy these capabilities.
What exactly is there to worry about? The mass collection and centralization of data by giant multinationals such as Facebook and Google is as good of a place to start as any. Two decades of vacuuming up the personal data of users of various online services has created the most impressive marketing capabilities in history, but these profiles have astounding potential for damage when they are used the wrong way or fall into the wrong hands.
Unauthorized information that is captured in data breaches tends to find its way to massive “combo lists” that are sold and traded on the dark web. Social security numbers are added from this breach, home addresses and phone numbers from that one, personal health information from yet another. Soon, a frighteningly complete profile of millions of individuals is available to anyone willing to pay the asking price.
These are just the established data privacy issues. The emerging ones are even worse. High-quality facial recognition technology is just beginning to roll out across the public places of some countries. Artificial intelligence is not only making mass facial recognition possible, but magnifies the power and reach of any application that involves capturing and sorting information: scanning pictures, analyzing speech, sifting through text and location data. This threatens to not only shatter anonymity and privacy, but allow for highly advanced impersonation and take the concept of “identity theft” to new levels.
Some businesses chafe at the trouble and added expense of new and emerging data privacy regulations, but they are vital to both protecting rights and privacy and instilling confidence in end users. Customers want to be able to submit their payment information without worry about data breaches and identity theft, use services without wondering what is being done with their personal information and use devices without fear of surveillance or having location data tracked. The need for meaningful safeguards only grows greater as technological capabilities increase.
Corporations and governments have access to more of your personal information than ever. Just existing in the digital world leaves a footprint that can be used to track and market to you with, and more commonly, without your permission. But all is not lost in the fight for personal privacy.
No matter what future laws and regulations are imposed on Facebook, there will never be a law against storing customer data for in-company purposes. Facebook got in hot water for allowing tactics that manipulated elections. The 2056 presidential campaign could be entirely run online where Facebook likes replace votes.
Whether you are a user or not, you have a relationship with Facebook. With the latest revelations of the Cambridge Analytica "breach", it is becoming more and more obvious that whether you like it or not, your data will be harvested – and “sold”. Privacy choice and control is no longer fully in your hands.
Of all the legislation currently on the horizon, the Honest Ads Act seems to have the best chance of passage. The legislation is easy to understand and has bilateral support as well as the tacit support of Facebook, which is under pressure to show that it is changing and has the best interests of users at heart.
Seventy percent of security pros want governments to impose social media regulation for the collection of personal data by social media companies. Yet, expectations are hazy and 72% also indicated that they have little to no faith that government officials have an understanding of the threats to digital privacy.
As much as Facebook would like to sweep the Cambridge Analytica data scandal under the rug, signs continue to mount that the company is still playing fast and loose with user data. All this raises the question of whether the 2011 FTC settlement that resulted in an 8-count consent decree actually went far enough.
Companies, and even entire industries, are more afraid of Wall Street than they are of Washington. Instead of Facebook’s stock falling on privacy concerns, it is actually rising. Facebook has sensed that Wall Street doesn’t really care about privacy, and as long as Wall Street doesn’t care about privacy, why should it?
After nearly two months of non-stop controversy and scandal over its improper use of Facebook data, Cambridge Analytica finally announced that it was ceasing operations, effective immediately. In doing so, Cambridge Analytica has become the new poster child to highlight the perils of data security breaches.
In an effort to get out in front of the data privacy scandal threatening to engulf the company, Facebook recently announced a new data abuse bounty program, which promises to pay people who report data abuses. But is this new data abuse bounty program going to result in any real changes to data privacy on Facebook?










