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The Facebook-Cambridge Analytica Scandal: How Data Privacy Was Compromised in 2018

Sebencapital

Published
08/02/25
The Facebook-Cambridge Analytica Scandal: How Data Privacy Was Compromised in 2018



In 2018, one of the biggest data privacy scandals in history came to light, revealing how Cambridge Analytica, a British political consulting firm, harvested data from millions of Facebook users without their explicit consent. This scandal not only shook the tech industry but also raised serious concerns about user privacy, election manipulation, and the role of social media in democracy.


What Was the Facebook-Cambridge Analytica Scandal?

The Facebook-Cambridge Analytica Scandal: How Data Privacy Was Compromised in 2018

The controversy began when Cambridge Analytica gained access to Facebook data through an app called "This Is Your Digital Life," developed by researcher Aleksandr Kogan. The app was presented as a personality quiz, and around 270,000 Facebook users installed it. However, due to Facebook’s then-existing policies, the app could collect data not only from users who installed it but also from their friends—resulting in a massive data leak affecting approximately 87 million users.


How Did Cambridge Analytica Obtain the Data?

The data was collected through a third-party Facebook app called "This Is Your Digital Life," developed by a researcher named Aleksandr Kogan in 2013.

Here’s how the data collection worked:

1. The app offered personality quizzes to users, claiming to be for academic research.

2. When a user took the quiz, the app not only collected their data but also accessed data from their Facebook friends (without their knowledge or consent).

3. Approximately 270,000 people took the quiz, but due to Facebook’s data-sharing policies at the time, data from nearly 87 million users was harvested.

4. Kogan then sold this data to Cambridge Analytica, violating Facebook’s policies.


How Was the Data Used?

The Facebook-Cambridge Analytica Scandal: How Data Privacy Was Compromised in 2018

Cambridge Analytica used the harvested data to build psychological profiles of voters. These profiles were then used for:

  • Microtargeting: Highly personalized political ads were shown to users based on their personality traits, political preferences, and behavioural patterns.
  • Election Influence: The firm worked with political campaigns, including Donald Trump’s 2016 presidential campaign and pro-Brexit groups, to create ads that could sway voters.
  • Misinformation Campaigns: Some of the advertisements spread false or misleading information to manipulate public opinion.

When Did the Scandal Become Public?

Although Facebook learned about the data misuse in 2015, the scandal only gained global attention in March 2018 when a whistleblower, Christopher Wylie, a former Cambridge Analytica employee, revealed the extent of the data breach to The Guardian and The New York Times.

The reports exposed how:

  • Cambridge Analytica acquired Facebook data without user consent.
  • Facebook knew about the breach in 2015 but failed to notify users.
  • The data was used to influence political outcomes.

Facebook’s Actions After the Scandal

  • Mark Zuckerberg Testified: Facebook CEO Mark Zuckerberg testified before the U.S. Congress in April 2018, admitting Facebook’s failure to protect user data.
  • Changes in Data Policies: Facebook revised its privacy policies, restricting third-party app access to user data.
  • User Notifications: Affected users were notified about the data breach.
  • Audit and Ban: Facebook banned Cambridge Analytica from its platform and initiated internal audits.

The Facebook-Cambridge Analytica Scandal: How Data Privacy Was Compromised in 2018

The scandal led to legal actions and massive fines:

1. FTC Fine: Facebook was fined $5 billion by the U.S. Federal Trade Commission (FTC) in 2019 for data privacy violations.

2. UK Fine: The UK’s Information Commissioner’s Office (ICO) fined Facebook £500,000 (the maximum penalty under pre-GDPR laws).

3. Cambridge Analytica Shutdown: Facing multiple investigations and lawsuits, Cambridge Analytica declared bankruptcy in May 2018.


Impact and Lessons Learned

For Facebook and Social Media Platforms

  • Stricter privacy policies and data protection measures were introduced.
  • Greater transparency about how user data is shared with third parties.

For Users

  • Raised awareness about digital privacy and the risks of sharing personal information online.
  • Increased scrutiny of data collection practices by tech companies.

For Governments and Regulations

  • This led to stronger data protection laws, including the General Data Protection Regulation (GDPR) in Europe.
  • Governments worldwide began enforcing stricter rules on tech companies regarding data privacy.

Conclusion

The Facebook-Cambridge Analytica scandal was a wake-up call for the digital world, exposing how personal data can be exploited for political manipulation. It highlighted the need for stricter regulations, responsible data handling by tech companies, and greater awareness among users about online privacy. Although Facebook took corrective measures, the scandal remains a defining moment in the history of data privacy.


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Written by Sauravsingh

Techpreneur and adept trader, Sauravsingh Tomar seamlessly blends the worlds of technology and finance. With rich experience in Forex and Stock markets, he's not only a trading maven but also a pioneer in innovative digital solutions. Beyond charts and code, Sauravsingh is a passionate mentor, guiding many towards financial and technological success. In his downtime, he's often found exploring new places or immersed in a compelling read.

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