Long Term Fallout Facebook Security Blunders

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7 Long Term Fallouts from Facebook Security Blunders

  1. An indicator for a coming bear market is the number of companies using data miners like Cambridge Analytica (or its successor entities like Emerdata), which took $95 BN off Facebook’s market value overnight (with an assist from FB).
  2. Savvy investors will find out if a public company has hired regulator bait like these, and then short the stock big time (it’s only a matter of time before they infringe something).
  3. Third party data sucking apps developers will find the digital world a tad harder.
  4. If the FTC convicts Facebook of violating the 2011 consent decree when it subsequently gave data on 50 million people to a third party 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.
  5. If that happens, expect massive investor lawsuits against not just what’s left of Facebook but against zuckerberg personally.
  6. 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.
  7. 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.

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