Cambridge Analytica, established in 2013 is in the eye of the storm today over a data scandal, a controversy that has also sullied the reputation of social networking giant Facebook.
About Cambridge Analytica
Cambridge Analytica is a data mining and predictive analytics company based out of UK. Founded in 2013, the company received funding from Republican and billionaire Robert Mercer who pumped in $15 million as an investor.
The company uses psychographic profiling from a wide array of sources such as consumer spending data, social media profiles, public records and uses the information to predict voting behaviour through behavioural and predictive analytics. It then uses data-driven advertising technology to send them customized messages to influence voting behavior.
What is the Facebook Data Scandal?
It is alleged that Cambridge Analytica acquired and misused Facebook data to influence voting behaviour in the U.S. Presidential Elections and the Brexit referendum (on Leave EU) in the U.K.
Relentless Media Coverage on Cambridge Analytica
The story was first reported by UK-based The Observer and The New York Times. An undercover investigative video by Channel 4 caught then CEO Alexander Nix boasting about how bribery and honey traps influenced voting results and went as far as claiming that all the digital campaigns for Donald Trump were handled by him. He said,
“We did all the research, all the data, all the analytics, all the targeting, we ran all the digital campaign, the television campaign and our data informed all the strategy.”
Nix also boasted about how his company to cover its tracks used ProtonMail, a self-destructing email service.
Key People in the Cambridge Analytica Controversy
Alexander Nix was working in the capacity of the CEO of Cambridge Analytica until recently when he was suspended by the Board after it was revealed that he was caught in a sting related to the Facebook data breach controversy.
Christopher Wylie, the whistleblower, is the Canadian ex-employee of Cambridge Analytica who was holding the position of Research Director at the company. He was the one who has spilled the beans around this controversy. In 2013, Wylie was introduced to a company called Strategic Communication Laboratories (SCL) Group whose subsidiary SCL Elections went on to create Cambridge Analytica.
In 2017 Wylie turns into a whistleblower and confides with The Guardian on the modus operandi of Cambridge Analytica. Going as far as saying "It's insane. The company has created psychological profiles of 230 million Americans. And now they want to work with the Pentagon? It's like Nixon on steroids."
How has Facebook Responded to the Data Scandal>/h3>
After a much anticipated and delayed reaction, Facebook CEO Mark Zuckerberg, finally reacted to the Cambridge Analytica controversy.
“This was a major breach of trust and I’m really sorry this happened,” confessed Mark Zuckerberg in an interview to CNN. He further added: “Our responsibility now is to make sure this doesn’t happen again.”
Reactions on the Data Scandal from the World
Even the $16 billion that WhatsApp co-founders Jam Koum and Brian Acton received from Facebook in 2014 didn’t prevent the latter from stating his unabashed opinion on the Facebook data breach controversy.
Conclusion
The Facebook data scandal allegedly orchestrated by Cambridge Analytica is turning out to be a shot in the arm for internet privacy advocates in India and rest of the world. If there is a time for stringent regulations around data security, it is now. Data companies must put in adequate safeguards in place to ensure data privacy and be better safe than sorry.