Facebook Lost 50bn Dollars Because of Data Breach

The news spooked investors causing Facebook to lose more than $50bn

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Facebook recent data breach has put Facebook in great trouble as we enter the fourth day of this news. Cambridge Analytica is the company that harvested the data of more than 50 million users. A powerful software was used to attain the data which helped the company to use it for targeting American voters. The company is alleged to use this data for exploiting the results in their own campaigns .The company was hired by Trump’s management to exploit the outcomes of Us General Elections. It is also believed that the Brexit campaign was exploited by the same company using the same tactics. The news has spooked investors causing Facebook to lose more than $50bn in value in just 48 hours which is almost three times the market cap of “Snapchat”. Facebook Lost 50bn Dollars Because of Data Breach.

It is now reported that Facebook is under investigation by Federal Trade Commission on the issue. Earlier today a movement started on Twitter with the hashtag of “#deletefacebook”. It was joined by Twitter co-founder who tweeted it is time #deletefacebook”. This movement has encouraged several media outlets to post guides on how to delete Facebook profiles permanently. A large number of people is joining this movement as Facebook troubles enter fourth day.

Facebook Lost 50bn Dollars Because of Data Breach

The official statement from Facebook has yet to come, as neither Mark Zuckerberg nor Sheryl Sandberg who is the COO of the company has made a public or internal statement. Whereas only Facebook communication has released a statement.

The claim that this is a data breach is completely false. Aleksandr Kogan requested and gained access to information from users who chose to sign up for his app, and everyone involved gave their consent.”

With the advancement of technology and rapid innovations, it is becoming much harder to regulate the data protection. Tech giants like Facebook needs to monitor the data acquired by the developer on constant basis. After this data breach, it is believed that more companies can harvest user data of million users for their own purpose. It is devastating to know that apparently a tech giant like Facebook has kept quiet on this issue and did not take the necessary measure to regulate their policies.

Also read: Facebook and Microsoft Complete its Biggest Undersea Cable

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