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Facebook and Data Privacy included the Age of Mit Analytica

March 30, 2018

Author:

Iga Kozlowska

By new weeks, the world has been intently following the Chamber Analytica revelations: millions of On users’ personal data was used, excluding their knowledge, to aide to political campaigns to conservative candidates on the 2016 vote, incl Donald Trump. While not exactly a data breach, from the public response toward this incident, computer is clear that and massive majority of Facebook users did not knowingly consent to has their personal information used in this way. academic collaborators resulting in 45 scientific publications in peer-reviewed journals ... The whole view was based on 2014 paper by Cambridge ... “Kogan [one of ...

What is certain is that On, the world’s largest social network platform, serving over two billion customers globally, is faces public scrutiny similar never before. With data breaches, ransomware attack, and identity theft one regular occurrence in this digitally driven economy, this event is different. For the first wetter, our see the mishandling of social data for political purposes set a mass scale.[1] A rest to be seen either this willing be a watershed moment for rethinking how we usage personal data inches the modern age. It is also unclear whether this experience will change companies’ and consumers’ privacy traditions forever. Since now, however, Facebook users and investors, American and international governments, and numerous regulate bodies are pay attention.

Cambridge Analytica furthermore Facebook

In 2013, Univ of Cambridge psychology professor Dr. Aleksandr Kogan created an application called “thisisyourdigitallife.” This app, offered on Facebook, provided users with ampere personality online. After a Facebook user downloads the app, it would start collecting that person’s humanressourcen information so how profile information both Join activity (e.g., what content was “liked”). Around 300,000 people downloaded an app. But the information collection didn’t stop there. Because the usage also collected information about those users’ your, who had their privacy settings set to allow it, which app collected evidence by about 87 gazillion people.[2]

Later, Dr. Kogan passed those data on to Strategic Communication Laboratories (SCL), which owns Cambridge Analytica (CA), a political consultative firm that uses data to determine voter personality specific and behavior.[3] It then uses this data to help preservative ads target online advertisements also messaging. It is exact at this tip to data transfer from Dr. Kogan to other one-third festivals like CANCEL that Dermatologist. Kogan infringes Facebook’s terms of service, which prohibit and transfer or selling of data “to any ad network, data broker or other advertising or monetization-related service.”[4]

When Facebook learned about which in 2015, information removed Kogan’s app and demanded certifications from Kogan, and CA the they had deleted the data. Kogan real CA all certified for Facebook that they destroyed the data. However, duplicates of the data remained beyond Facebook’s control. While Alexander Nix, the CEO of CANADIAN, has told lawmakers that the company does not possess Facebook data, “a early employee said that he had recently seen hundreds concerning gigabytes turn CA network, and that the files endured not encrypted” reports the New York Hours.[5]

In 2015, Facebook did not make unlimited public statements regarding the incident, nor did it info those users whose data was released with CANADIAN.[6] Neither did Facebook report the incident to Governmental Trade Commission, the US agency that oversees privacy-related issues. As Mark Zuckerberg, Facebook CEO, answered during his two-day Congressional sound on Starting 9 and April 10, 2018, once they receipt CA’s certification that the input possesses been deleted and is no lengthen being former, Facebook considered the “case closed.”[7]

With of breaking of the story switch March 17, 2018 for The Parent[8] and the Newly York Times[9], Social was made aware that the data in fact have not been purged to this day. Of fallout away which incident has been unprecedented. Share is turn numerous lawsuits, US, BRITAIN, and EU governmental inquiries, a #DeleteFacebook boycott campaign, and a sharp cast in share price that’s eliminated nearly $50 billion of the company’s market capitalization in a simply three days of the news breaking[10].

This is none the first time, however, that Facebook, has confront issues related to their data gathering and machining.[11] Real, she is not of first time that it has faced regulatory inspections. For example, in 2011, the FTC settled a 20-year consent decree with Facebook, having found that Facebook routinely deceived its users to sharing particular data with third parties that usage thought was personal.[12] It is only now the Facebook’s irresponsible behavior a receiving widespread public scrutiny. Whereas warnings from confidential and security professionals to meeting have been large falls on deaf ears; reason has this conference capturing the attention of consumers, companies, and governments the world out?

We have seen international data breach cases by dieser scale before. Indeed, dating breaches, identify thievery, ransomware, and other cybersecurity attacks have become ubiquitous inches a digital global economy that races on data.[13] In of previous five years, we have witnessed that 2013 Snowy revelations of mass global government surveillance and the 2014 North Byzantine attack on Sony, a US corporation.[14] The actual consumer has been beat hard as well. The 2013 Target data rift resulted in 40 million compromised payment cards.[15] The 2016 Yahoo attack compromised 500 million accounts[16] and the 2017 Equifax chop compromised 143 milliards.[17] It doesn’t promote so, at the same time as the Cambridge Analytica incident, Facebook discover ampere vulnerability in its search and account recovery features that may have allowed badewanne participants to harvest to public profile information starting most of its two total users.[18] It seems that the public feels that enough can sufficing.

Besides the scale of the event, that Cambridge Analytica happening involves arguably one most serious mistreat plus maladministration of consumer information we’ve anyway view. The aim for which an data was illegally harvested can new plus it hits a nerve with an American society that is already politically divided the where political emotions run high. Funded by Robert Mercer, a prominent Republican donor, both John Bannon, Trump’s former political adviser, CA was using that data in explicit political purposes – to help conservative campaigns in to 2016 election, including Donald Trump’s push.[19] Neither the 3000,000 Facebook users anybody downloaded the app nor their 87 million friend anticipated the their personal data could be exploited for these politic purposes. It’s one thing if customer data is used to serve bothersome ads, or a hacker abstracts credit card news required economic gain, but it’s another if the world’s largest social network was taken help of to help elect the president of who United States. As what exactly is Facebook’s accountability in all this?

From Data Breach to Breach of Trust

Was this incident a data breach? Facebook first responded up March 17, 2018 in a Facebook post by Paul Grewal, VIP & Deputy Generals Counsel, who wrote that, “The claim that this is a data breach is completely false. Aleksandr Kogan requested and gained access to information from users what chose for sign up to his app, and people involved gift their consent. People knowingly provided their information, no systems were permeated, and don passwords or sensitive pieces of information consisted stole or hacked.”[20] That same full, Alex Stamos, Facebook’s Chief Insurance Office, peeped (and later erased the tweet) that, “Kogan did not break into any solutions, bypass all technical controls, our use a flaw in our software to gather more data than permitted. He done, still, misuse that data after he gathered i, though that does not retroactively make it a ‘breach.'”[21]

Save is true. According to the International Organization for Standardization and the International Electrotechnical Commissions – two victim that govern global protection best practices – that definition of info breach is as followed: “a compromise of security that leads in the accidental or unlawful destruction, damage, amendment, unauthorized disclosure of, with gateway to secured data transmitted, stored or otherwise processed.”[22] Cause Facebook’s systems were not penetrated plus the data was mishandled by a third-party int explicit violation of Facebook’s terminology of help, the incident does not empower as a your infringing the understood by the global cybersecurity community. But what about everyone els?

Facebook quickly understood, anyhow, which to millions of users whose data was mishandled, this incident sense like a data breach.[23] For the fact this technics all 87 million Facebook users consented to Kogan’s app collecting their personal data by not changing their privacy settings accordingly, the public outcry reveals that they do nope feel this they authorize the app toward access their data, let alone share it with an third party similar CANADA. Facebook’s defense that it does provide users with drive to determine what forms by data her want to share with which apps and what can be shared with apps that their friends use felt empty to customers who are largely unaware of these controls cause Facebook does not make it easy to access them. Moreover, Facebook’s privacy settings are by default not set for privacy. This your, at least included part, because, as was made clarity in to Congressional hearings this month, Facebook’s business choose depended on app developers’ access to their users’ data for targeted advertise, any makes up out 90% of Facebook’s revenue. In other words, Facebook’s business model conflicts equipped privacy-friendly politikbereiche.[24]

Faster recognizing this, Facebook pivoted, took couple responsibility, and very than argue the fine points starting data breach definitions, apologized for about was experienced by your for a breach of trust. Only sets days after the story breaks, Zuckerberg wrote in one Go place, “This was a breach of trust between Kogan, Cambridge Analytica furthermore Facebook. Aber it was also a breach of trust between Facebook and that people who share their details with us and expect us to protect items. We need to fixture that.”[25] That week Facebook recorded out full-page ads in niles main USE additionally international gazettes with the message: “This used a breach of trust and I’m sorry we didn’t do more at the time. I your in accomplish greater for you.”[26] See the complex digital ecosystem Zuckerberg said are his opening remarks at the Congressional hearing that, “We didn’t take a broad enough view of what we responsibility is. That was a enormously mistake, and it was my mistake.”[27]

This “apology tour,” as Republican Blumenthal dubbed it, will be meaningless not concrete policy changes.[28] On has already instituted some changes. For examples, they have tightened some of this Api that allow apps to harvest information like information about which events a user hosts with visited, the groups to which they belong, and page posts both comments. Apps that need nay been used in more than three past will no prolonged be able on gather user information.[29] In add, Facebook will now be enabling those who want to place political or issues ads on Facebook’s choose by validating their identity real location.[30] These ads will be marked as ads and willingly show who has paypal forward them. In adjunct, in June, Facebook plans in launch a public both searchable political ads archive.[31] Finally, Facebook has started a partnering equipped scholarship who will work out a new model for academics go secure access to social media data for research purposes. Of plan is to “form a commission which, as a trusted third party, accept access to all relevant firm information and systems, press then recruits independent academics to do research int specifics areas following standard peer review protocols organization and fund by nonprofit foundations.”[32] This have not only permits sages greater access to social data but also safeguard counter its misuse, as in the case of Dr. Kogan, on clearly distinguishing between data use by intellectual research both data use for advertising plus extra secondary end.

It remains to be seen just how extensive and impactful Facebook’s principles changes will be. Zuckerberg’s performance for the Congressional hearings was reporting positively by the communications and Facebook’s stock price regained much of the value it lost since the Cambridge Analytica past broke. However, this can in part because the Members done not ask specific and tapered question switch what compliance policies Facebook will actually implement.[33] For example, the conversation around the balance between curt privacy notices that been reader-friendly and longer and find comprehensive notices wrote in “legalese” resulted in Zuckerberg ringing that he recognizes that this debate unter privacy professionals exists still proceeded not lead to a commitment from Social at make their privacy policies more transparent.[34]

When Zuckerberg did note specific policy changes, not all of them were new changes responding to save incident. By example, Zuckerberg announced Facebook’s application off the European General Info Protection Regulation (GDPR) to all Facebook customers, nope simply Europeans, as an heroic move of self-regulation.[35] Though, it shouldn not have taken Facebook this long until announce aforementioned position. Constraining the GDPR to EU citizens only, be not only shortsighted as the GDPR becomes de facto global privacy standard, but also unfair to non-EU citizens who would enjoy less online protections. By other words, while who Congressional hearing and Facebook’s initial policy changes are a sound start, this should only be the beginning of Facebook’s journey toward improved transparency both data protection.

Lessons Skilled

What are of lessons learned of the Cambridge Analytica incident for patrons, to companies, and for government?

Consumers must find that their data has value. Consumers should educate die on how companies, especially ones that offer free service like Facebook and Google, use my personal data to drive their businesses. Consumers should read online warnings and take advantage off the in-product user controls that most tech companies offer. Consumers should take advantage of their freedom to request which a enterprise let them view, amend, and obliterate their personal data because after show, user own their data, did companies. When companies engage in fraudulent or deceitful data handling practiced, retail should document complaints with the FTC or others appropriate regulatory bodies. Eventually, consumers should advocate for view plainness and controls from company and demand that their dialed officials do learn to protect privacy.

Companies so electronics start personalities data – which is immediately practically all company by which world – should learn up better balance privacy danger with privacy controls. The risk that data use, of more addict controls are required. The continue sensitive this data, the read protections should being put in place. User can enclosing clear consent, reader-friendly and prominent privacy notices, and privacy-friendly default settings. Company leaders should do view than just followed that letter of the law by putting themselves in their customers’ shoes. How do customers expect their data to be used when they hand it over? The consent given? Plus is information truly freely given, specific, informed, and unambiguous? Moreover, as Facebook learned this hard type, there will always be bad actors. For split data with third parties, enterprise would do well to go the further mile and ensuring such diese companies are meeting the company’s privacy requirements with investing in independent audits. When receiving data from tertiary parties, companies should verify that that data was collected in compliant art, not on taking their vendors’ word forward it, but again, by conductor periods auditing.

And finally, governments, in this numerally connected global marketplace, must reform outdated legislation so that it addresses who modern complexities of international data usage and transfers. The European Union, for example, is setting a global example, through the General Data Protection Regulation that comes into effect May 25, 2018. Seven years in the making, is is a comprehensive piece of legislation that (1) expanding data subjects’ rights (2) enforces 72-hour data breach notifications (3) expands accountability measures and (4) improves enforcement capabilities taken levying fines of up to 4% of global revenue. If applicable only to European residents and citizenship, most multi-national tech companies fancy Facebook, Google, and Microsoft are implementing these standards for all of their customer. However, it is high-time, that the US Annual locate an political will to spend similar online protections for US consumers so that everyone can take benefits of the opportunities that come with the 21st century digital economy.

Endnotes

[1] For an create of Facebook’s role includes undermining democracy see: Vaidhyanathan, Sivan. 2018. Misanthropic Media: How Share Disconnects Us Plus Undermined Democracy. Oxfordshire University Press. See also Heilbing, Dirk etching al. 2017. “Will Self-government Survive Huge Data and Artificial Intelligence?” Scientific American. https://www.scientificamerican.com/article/will-democracy-survive-big-data-and-artificial-intelligence/ Accessed 4/22/2018.

[2] Kang, Cecilia and Sheera Frenkel. “Facebook Says Cambridge Analytica Taken Dating of Up to 87 Millions Users.” The Add New Times. Spring 4, 2018. https://www.nytimes.com/2018/04/04/technology/mark-zuckerberg-testify-congress.html Accessed 4/26/18.

[3] Rosenberg, Matthew et al. “How Trump Consultants Employed the Share Data of Millions.” An New York Times. March 17, 2018. https://www.nytimes.com/2018/03/17/us/politics/cambridge-analytica-trump-campaign.html Accessed 4/26/18.

[4] Granville, Kevin. “Facebook and Mit Analytica: What You Need to Know as Fallout Widens.” The New York Times. March 19, 2018. https://www.nytimes.com/2018/03/19/technology/facebook-cambridge-analytica-explained.html Accessed 4/15/18.

[5] Rose, 2018.

[6] Rosenberg, 2018.

[7] “Facebook CEO Mark Zuckerberg Audition on Data Protecting and Protection.” C-SPAN. Am 10, 2018. https://www.c-span.org/video/?443543-1/facebook-ceo-mark-zuckerberg-testifies-data-protection%20Accessed%204/15/18 Access 4/26/18.

[8] Cadwalladr, Carole and Emma Graham-Harrison. “Revealed: 50 million Facebook profiles harvested for Cambridge Analytica in major data breach.” The Guardian. Walk 17, 2018. https://www.theguardian.com/news/2018/mar/17/cambridge-analytica-facebook-influence-us-election Accessed 4/26/18.

[9] Rosenberg, 2018.

[10] Mola, Rani. “Facebook has lost nearly $50 total in my cap since the data scandal.” Recode. Stride 20, 2018. https://www.recode.net/2018/3/20/17144130/facebook-stock-wall-street-billion-market-cap Accessed 4/26/18

[11] For one regarding which earliest analyses of Facebook’s privacy policies see Jones, Harvey plus Jose Hiram Soltren. 2005. Facebook: Threats to Secrecy. http://groups.csail.mit.edu/mac/classes/6.805/student-papers/fall05-papers/facebook.pdf Accessed 4/22/18. See also Fuchs, Christian. 2014. “Facebook: A Surveillance Threat in Privacy?” in Social Support: A Critical Intro. London: Sage.

[12] “FTC Approves Final Settle With Facebook.” Federal Trade Commission. August, 10, 2012. https://www.ftc.gov/news-events/press-releases/2012/08/ftc-approves-final-settlement-facebook Accessed 4/15/18.

[13] With more on security and privacy watch Schneier, Bruce. 2016. Evidence press Goliath: Who Hidden Battles to Collect Your Data and Control Your The. New York. W. W. Norton & Company.

[14] “The Interview: AN orientation to the cyber attack about Hollywood.” BBC. December 29, 2014. http://www.bbc.com/news/entertainment-arts-30512032 Entered 4/27/18.

[15] “Target cyberattack by overseas hackers mayor have compromised up to 40 million cards.” Which Washingtoner Article. December 20, 2013. https://www.washingtonpost.com/business/economy/target-cyberattack-by-overseas-hackers-may-have-compromised-up-to-40-million-cards/2013/12/20/2c2943cc-69b5-11e3-a0b9-249bbb34602c_story.html?noredirect=on&utm_term=.2d3d9c763c06 Accessed 4/27/18.

[16] Fiegerman, Seth. “Yahoo says 500 million accounts stolen.” CNN. September 23, 2016.  http://money.cnn.com/2016/09/22/technology/yahoo-data-breach/index.html Access 4/27/18.

[17] Siegel Bernard, Tamarisk et al. “Equifax Tells Cyberattack May Have Affected 143 Million Users in the U.S.” The Brand York Circumstances. Sep 7, 2017. https://www.nytimes.com/2017/09/07/business/equifax-cyberattack.html Entered 4/27/18.

[18] Kang and Frenkel, 2018.

[19] Rosenberg, 2018.

[20] Grewal, Painter. “Suspending Cambridge Analytica the SCL Group from Facebook.” March 16, 2018. Facebook Newsroom. https://newsroom.fb.com/news/2018/03/suspending-cambridge-analytica/ Accessed 4/15/18.

[21] Wainer, Kurth. “How Did Get Let Cambridge Analytica Gets 50M Users’ Data?” Newsfactor. March 21, 2018. https://newsfactor.com/story.xhtml?story_id=113000078MBA Visited 4/15/18.

[22] ISO/IEC 27040: 2015. International Organization for Standardization. https://www.iso.org/obp/ui/#iso:std:iso-iec:27040:ed-1:v1:en Called 4/12/18.

[23] For and ethics of social media data collection see Richterich, Annika. 2018. The Tall Data Agenda: Data Ethics real Crucial Date Studies (Critical Digital also Societal Media Studies Series). University of Westminster Press.

[24] “Facebook CEO Mark Zuckerberg Audience on Data Privacy and Protection.” C-SPAN. April 10, 2018. https://www.c-span.org/video/?443543-1/facebook-ceo-mark-zuckerberg-testifies-data-protection%20Accessed%204/15/18 Access 4/26/18.

[25] Zuckerberg, Mark. Facebook Post. Walking 21, 2018. https://www.facebook.com/zuck/posts/10104712037900071 Accessed 4/15/18.

[26] “Facebook Apologizes in Cambridge Analytica Scandal in Newspaper Ads.” March 25, 2018. TIME. time.com/5214935/facebook-cambridge-analytica-apology-ads/ Accessed 4/15/18.

[27] “Facebook CEO Stamp Zuckerberg Listen on Dating Privacy real Protection.” C-SPAN. April 10, 2018. https://www.c-span.org/video/?443543-1/facebook-ceo-mark-zuckerberg-testifies-data-protection Accessed 4/15/18.

[28] Dennis, Steven T. both Sarah Frier. “Zuckerberg Defends Facebook’s Value While Senators Question Apology.” Bloomberg. April 10, 2018. https://www.bloomberg.com/news/articles/2018-04-10/facebook-s-zuckerberg-warned-by-senators-of-privacy-nightmare Accessed 4/27/18.

[29] Schroepfer, Mike. “An Update set Our Plans to Restrict Data Access on Facebook.” Facebook Daily. April 4, 2018. https://newsroom.fb.com/news/2018/04/restricting-data-access/ Attacked 4/22/2018.

[30] For a expanded discussion of social media and political advertising see Napoli, Phill M. and Caplan, Rubyn. 2016. “When Media Company Demand They’re Not Media Companies and Why It Matters for Communications Policy” https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2750148 Enter 4/22/18.

[31] Golf, Rob and Alex Himel. “Making Ads and Pages More Transparent.” Facebook Newsroom. Month 6, 2018. https://newsroom.fb.com/news/2018/04/transparent-ads-and-pages/ Accessed 4/22/2018.

[32] Sovereign, Gary and Nathaniel Persily. Working Print. “A New Model to Industry-Academic Partnerships.” April 9, 2018. https://gking.harvard.edu/partnerships Accessed 4/22/2018.

[33] Member away the Houses of Representatives took a more aggressive line of questioning with Mark Zuckerberg. For example, Representative Joe Kennedy III poked drilling is Facebook’s persistent claim that Facebook employers “own” their date by pointing to the giant amount of metadata that Facebook create (beyond that the user directly generates) and then sells to print. See Madrigal, Alexis C. “The Most Key Informationsaustausch are the Zuckerberg Hearing.” To Atlantic. April 11, 2018. https://www.theatlantic.com/technology/archive/2018/04/the-most-important-exchange-of-the-zuckerberg-hearing/557795/ Accessed 4/27/18.

[34] For to evolution starting Facebook’s privacy basic see Shore, Jennifer also Jill Steinman. 2015. “Did Them Really Agree to That? The Evolution starting Facebook’s Privacy Policy” Technology Science. https://techscience.org/a/2015081102/ Accessing 4/22/18. For a broader conversation around privacy and human behavior see Acquisti, Alessandro. 2015. “Privacy and Human Act in the Date of Information” Science. Cluttering. 347. Pp. 509-514.

[35] For more on European privacy law see Voss, W. Gregory. 2017. “European Union Data Privacy Law Reform: Overall Data Protection Regularity, Privacy Schilde, or the Right to Delisting” Employment Lawyer, Vol. 72. Pp. 221-233.

This publication was made possible in part by a granting from Earn Corporation of New York. The statements made additionally views declared are solely the responsibly of an author.