Tag Archives: Cambridge Analytica

U.S. investigating Cambridge Analytica: New York Times

FILE PHOTO: Window cleaners work outside the offices of Cambridge Analytica in central London, Britain, March 24, 2018. REUTERS/Peter Nicholls/File Pho

WASHINGTON (Reuters) – The U.S. Justice Department and the FBI are investigating Cambridge Analytica, a now-defunct political data firm embroiled in a scandal over its handling of Facebook Inc user information, the New York Times reported on Tuesday.

Prosecutors have sought to question former Cambridge Analytica employees and banks that handled its business, the newspaper said, citing an American official and others familiar with the inquiry,

Cambridge Analytica said earlier this month it was shutting down after losing clients and facing mounting legal fees resulting from reports the company harvested personal data about millions of Facebook users beginning in 2014.

Allegations of the improper use of data for 87 million Facebook users by Cambridge Analytica, which was hired by President Donald Trump’s 2016 U.S. election campaign, have prompted multiple investigations in the United States and Europe.

The investigation by the Justice Department and FBI appears to focus on the company’s financial dealings and how it acquired and used personal data pulled from Facebook and other sources, the Times said.

Investigators have contacted Facebook, according to the newspaper.

The FBI, the Justice Department and Facebook declined to comment to Reuters. Former officials with Cambridge Analytica was not immediately available to comment.

Cambridge Analytica was created around 2013, initially with a focus on U.S. elections, with $15 million in backing from billionaire Republican donor Robert Mercer and a name chosen by future Trump White House adviser Steve Bannon, the New York Times has reported. Bannon left the White House on August 2017.

(Reporting by Eric Beech; Editing by Peter Cooney)

Facebook suspends 200 apps over data misuse investigation

FILE PHOTO: Silhouettes of mobile users are seen next to a screen projection of Facebook logo in this picture illustration taken March 28, 2018. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) – Facebook Inc has so far suspended around 200 apps in the first stage of its review into apps that had access to large quantities of user data, in a response to a scandal around political consultancy Cambridge Analytica.

The apps were suspended pending a thorough investigation into whether they misused any data, said Ime Archibong, Facebook’s vice president of product partnerships.

Facebook said it has looked into thousands of apps till date as part of an investigation that Chief Executive Officer Mark Zuckerberg announced on March 21.

Zuckerberg had said the social network will investigate all apps that had access to large amounts of information before the company curtailed data access in 2014.

“There is a lot more work to be done to find all the apps that may have misused people’s Facebook data – and it will take time,” Archibong said.

“We have large teams of internal and external experts working hard to investigate these apps as quickly as possible.”

Facebook was hit by the privacy scandal in mid-March after media reports that Cambridge Analytica improperly accessed data to build profiles on American voters and influence the 2016 presidential election.

The incident led to backlash from celebrities and resulted in the company losing billions in market value. Zuckerberg apologized for the mistakes his company made and testified before the U.S. lawmakers.

The company, however, regained much of its lost market value after it reported a surprisingly strong 63 percent rise in profit and an increase in users when it announced quarterly results on April 25.

Shares of the company were up 0.4 percent at $187.65 in premarket trading on Monday.

(This version of the story corrects share price in last paragraph.)

(Reporting by Supantha Mukherjee in Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur)

Cambridge Analytica and British parent shut down after Facebook scandal

(Reuters) – Cambridge Analytica, the firm embroiled in a controversy over its handling of Facebook Inc

Window cleaners work outside the offices of Cambridge Analytica in central London, Britain, March 24, 2018. REUTERS/Peter Nicholls

Window cleaners work outside the offices of Cambridge Analytica in central London, Britain, March 24, 2018. REUTERS/Peter Nicholls

user data, and its British parent SCL Elections Ltd, are shutting down immediately after suffering a sharp drop in business, the company said on Wednesday.

The company will begin bankruptcy proceedings, it said, after losing clients and facing mounting legal fees resulting from the scandal over reports the company harvested personal data about millions of Facebook users beginning in 2014.

“The siege of media coverage has driven away virtually all of the Company’s customers and suppliers,” the statement said.

“As a result, it has been determined that it is no longer viable to continue operating the business, which left Cambridge Analytica with no realistic alternative to placing the company into administration.”

Allegations of the improper use of data for 87 million Facebook users by Cambridge Analytica, which was hired by President Donald Trump’s 2016 U.S. election campaign, has hurt the shares of the world’s biggest social network and prompted multiple official investigations in the United States and Europe.

“Over the past several months, Cambridge Analytica has been the subject of numerous unfounded accusations and, despite the company’s efforts to correct the record, has been vilified for activities that are not only legal, but also widely accepted as a standard component of online advertising in both the political and commercial arenas,” the company’s statement said.

The firm is shutting down effective Wednesday and employees have been told to turn in their computers, the Wall Street Journal reported earlier.

The Cambridge Analytica sign had been removed from the reception area of its London offices on Wednesday. At SCL’s Washington, D.C. office, a man declined to answer questions from a Reuters reporter.

After the announcement, Britain’s data regulator said it would continue civil and criminal investigations of the firm and will pursue “individuals and directors as appropriate” despite the shutdown.

“We will also monitor closely any successor companies using our powers to audit and inspect, to ensure the public is safeguarded,” a spokeswoman for the Information Commissioner’s Office said in a statement.

Cambridge Analytica was created around 2013 initially with a focus on U.S. elections, with $15 million in backing from billionaire Republican donor Robert Mercer and a name chosen by future Trump White House adviser Steve Bannon, the New York Times reported.

Cambridge Analytica marketed itself as a provider of consumer research, targeted advertising and other data-related services to both political and corporate clients.

After Trump won the White House in 2016, in part with the firm’s help, Cambridge Analytica CEO Alexander Nix went to more clients to pitch his services, the Times reported last year. The company boasted it could develop psychological profiles of consumers and voters which was a “secret sauce” it used to sway them more effectively than traditional advertising could.

One unanswered question in Special Counsel Robert Mueller’s investigation into whether there was any collusion between Trump’s campaign and Russia is whether Russia’s Internet Research Agency or Russian intelligence used data Cambridge Analytica obtained from Facebook or other sources to help target and time messages during the campaign that were anti-Hillary Clinton, pro-Trump and politically and racially divisive.

Bannon was a former vice president of the London-based firm, and Mueller has asked it to provide internal documents about how its data and analyses were used in the Trump campaign, according to sources familiar with the investigation.

(Reporting by Dustin Volz in Washington, Andy Bruce in London and Munsif Vengattil in Bengaluru; Writing by John Whitesides; Editing by Patrick Graham and Bill Rigby)

Facebook CEO starts second day of U.S. congressional hearings

Facebook CEO Mark Zuckerberg is surrounded by members of the media as he arrives to testify before a Senate Judiciary and Commerce Committees joint hearing regarding the company’s use and protection of user data, on Capitol Hill in Washington, U.S., April 10, 2018. REUTERS/Leah Milli

By Dustin Volz and David Ingram

WASHINGTON/SAN FRANCISCO (Reuters) – Facebook Inc Chief Executive Mark Zuckerberg started a second day of testimony on Capitol Hill on Wednesday, facing more questions from lawmakers about data privacy at the world’s largest social media network.

The 33-year-old internet magnate, once again wearing a dark suit instead of his usual gray T-shirt, appeared before the U.S. House of Representatives Energy and Commerce Committee, a day after he took questions for nearly five hours in a U.S. Senate hearing.

He navigated through the first hearing on Tuesday without making any further promises to support new legislation or change how the social network does business, foiling attempts by senators to pin him down.

Investors were impressed with his initial performance. Shares in Facebook posted their biggest daily gain in nearly two years on Tuesday, closing up 4.5 percent. They were down slightly in early trading on Wednesday.

Facebook has been consumed by turmoil for nearly a month, since it came to light that millions of users’ personal information was wrongly harvested from the website by Cambridge Analytica, a political consultancy that has counted U.S. President Donald Trump’s election campaign among its clients. The latest estimate of affected users is up to 87 million.

Patience with the social network had already worn thin among users, advertisers and investors after the company said last year that Russia used Facebook for years to try to sway U.S. politics, an allegation Moscow denies.

Lawmakers have sought assurances that Facebook can effectively police itself, and few came away from Tuesday’s hearing expressing confidence in the social network.

“I don’t want to vote to have to regulate Facebook, but by God, I will,” Republican Senator John Kennedy told Zuckerberg on Tuesday. “A lot of that depends on you.”

Zuckerberg deflected requests to support specific legislation. Pressed repeatedly by Democratic Senator Ed Markey to endorse a proposed law that would require companies to get people’s permission before sharing personal information, Zuckerberg agreed to further talks.

“In principle, I think that makes sense, and the details matter, and I look forward to having our team work with you on fleshing that out,” Zuckerberg said.

(Reporting by Dustin Volz in Washington and David Ingram in San Francisco; Editing by Bill Rigby)

Facebook says data leak hits 87 million users, widening privacy scandal

FILE PHOTO: Silhouettes of mobile users are seen next to a screen projection of Facebook logo in this picture illustration taken March 28, 2018. REUTERS/Dado Ruvic/Illustration/File photo

By David Ingram

 

By David Ingram

SAN FRANCISCO (Reuters) – Facebook Inc said on Wednesday the personal information of up to 87 million users, mostly in the United States, may have been improperly shared with political consultancy Cambridge Analytica, up from a previous news media estimate of more than 50 million.

Chief Executive Mark Zuckerberg said in a conference call with reporters that Facebook had not seen “any meaningful impact” on usage or ad sales since the scandal, although he added, “it’s not good” if people are unhappy with the company.

Shares rose more than 3 percent after the bell.

Zuckerberg told reporters that he accepted blame for the data leak, which has angered users, advertisers and lawmakers, while also saying he was still the right person to head the company he founded.

“When you’re building something like Facebook that is unprecedented in the world, there are going to be things that you mess up,” Zuckerberg said, adding that the important thing was to learn from mistakes.

He said he was not aware of any discussions on the Facebook board about him stepping down, although directors would face a challenge if they wanted to oust him because Zuckerberg is the controlling shareholder.

He said he had not fired anyone over the scandal and did not plan to. “I’m not looking to throw anyone else under the bus for mistakes that we made here,” he said.

Facebook first acknowledged last month that personal information about millions of users wrongly ended up in the hands of Cambridge Analytica.

Zuckerberg will testify about the matter next Tuesday and Wednesday during two U.S. congressional hearings.

London-based Cambridge Analytica, which has counted U.S. President Donald Trump’s 2016 campaign among its clients, disputed Facebook’s estimate of affected users. On Wednesday it said on Twitter it had received no more than 30 million records from a researcher it hired to collect data about people on Facebook.

Zuckerberg, on the call with reporters, said Facebook should have done more to audit and oversee third-party app developers like the one that Cambridge Analytica hired in 2014.

“Knowing what I know today, clearly we should have done more,” he said.

Facebook was taking steps to restrict which personal data is available to third-party app developers, he said, and it might take two more years to fix Facebook’s problems.

“We’re broadening our view of our responsibility,” Zuckerberg said.

Most of the up to 87 million people whose data was shared with Cambridge Analytica were in the United States, Facebook Chief Technology Officer  Mike Schroepfer wrote in a blog post.

Shares in Facebook closed down 0.6 percent on Wednesday to $155.10. They have tumbled more than 16 percent since the Cambridge Analytica scandal broke.

The previous estimate of more than 50 million Facebook users affected by the data leak came from two newspapers, the New York Times and London’s Observer, based on their investigations of Cambridge Analytica.

Zuckerberg said Facebook came to the higher estimate by looking at the number of people who had downloaded a personality quiz app created by Cambridge University academic Aleksandr Kogan, or about 270,000 people, and then adding in the number of friends they had.

Cambridge Analytica has said that it engaged Kogan “in good faith” to collect Facebook data in a manner similar to how other third-party app developers have harvested personal information.

The scandal has kicked off investigations by Britain’s Information Commissioner’s Office, Australia’s Privacy Commissioner and the U.S. Federal Trade Commission and by some 37 U.S. state attorneys general.

Nigeria’s government will investigate allegations of improper involvement by Cambridge Analytica in that country’s 2007 and 2015 elections, a presidency spokesman said on Monday.

(Reporting by David Ingram in San Francisco; Additional reporting by Arjun Panchadar in Bengaluru, Eric Auchard in London and Tom Westbrook in Sydney; Editing by Lisa Shumaker and Clarence Fernandez)