Facebook Shares Move Lower as Data Breach Probe Broadens

Clay Curtis
July 4, 2018

Investigators are also keen to discover if there are any discrepancies in recent accounts and are believed to be scrutinizing CEO Mark Zuckerberg and his colleagues' Capitol Hill testimonies as part of the expanded probe. The FTC confirmed that they were investigating Facebook in March.

The company said it had received questions from the FBI, the SEC, the Federal Trade Commission and the Department of Justice in relation to its relationship with Cambridge Analytica.

Shares of Facebook Inc fell 2 per cent on Tuesday, after a report that a federal probe on the data breach linked to Cambridge Analytica had been broadened and would include more government agencies. Companies who have settled previous FTC actions must also comply with FTC order provisions imposing privacy and data security requirements. Although some Facebook users volunteered their info while participating in the survey, Kogan was able to glean data from some of their Facebook friends without those friends' knowledge or explicit permission.

The problem for the Silicon Valley company would be when this investigation discovers that Facebook either lied during the testimonies and disclosures or that it's found violating the 2011 consent decree made with the FTC.

Facebook first learned about Cambridge Analytica's data collection methods in 2015.

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The news marks the latest development in the wake of Facebook's Cambridge Analytica scandal, which revealed that the data of some 87 million Facebook users had been harvested by the firm.

"We are cooperating with officials in the USA, U.K., and beyond".

The SEC and FBI join the Justice Department and Federal.

"In April, we publicly announced that we'd start shutting down these APIs (application programming interface)-and we continue to make other changes that restrict the information people can share to better protect their privacy".

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