Long Term Fallout Facebook Security Blunders
7 Long Term Fallouts from Facebook Security Blunders
- An indicator for a coming bear market is the number of companies using data miners like Cambridge Analytica, which took $95 BN off Facebook’s market value overnight (with an assist from FB).
- Savvy investors will find out if a public company has hired regulator bait like Cambridge Analytica, and then short the stock big time (it’s only a matter of time before they infringe something).
- Third party data sucking apps developers will find the digital world a tad harder.
- If the FTC convicts Facebook of violating the 2011 consent decree when it subsequently gave data on 50 million people to a third part app developer linked to Cambridge Analytica, which could carry a penalty of $40,000 per violation, the liabilities could be in the trillions of dollars.
- If that happens, expect massive investor lawsuits against not just what’s left of Facebook but against zuckerberg personally.
- Brands will question the value of spending wads of cash on disgraced “horizontal” social networks like Facebook — which are everything to everybody and nothing special to anyone.
- There will be a second coming for updated versions of the early Web 1.0 “vertical” social networks — the niche special interest online communities, news groups and discussion boards that Facebook killed off. Having helped build two vertical private label American social networks (for a distinguished museum and for a child care brand), I can say they are hard work to populate but worth it because your “users” are there because they want to be, not because there’s nowhere else.