Facebook warns that it expects to find more data misuse
Facebook warned investors Thursday that it expects to find more instances of third parties improperly obtaining user data in ways similar to the Cambridge Analytica scandal.
In a filing with the Securities and Exchange Commission (SEC) on Thursday, the social network said that it’s auditing third-party handling of data following media reports about the Cambridge Analytica leak.
“As a result of these efforts we anticipate that we will discover and announce additional incidents of misuse of user data or other undesirable activity by third parties,” Facebook said in the filing. “Such incidents and activities may include the use of user data in a manner inconsistent with our terms or policies, the existence of false or undesirable user accounts, election interference, improper ad purchases, activities that threaten people’s safety on- or offline, or instances of spamming, scraping, or spreading misinformation.”
Despite the warning, Facebook stock soared this week after it posted a strong first quarter, reporting a 50 percent boost in revenue over the previous year. The numbers show that advertisers are sticking by the platform despite scandal.
Still, regulators around the world are scrutinizing the internet giant after learning that personal information from 87 million Facebook users was improperly obtained by Cambridge Analytica, a political consulting firm that worked on the Trump campaign
Companies are required to disclose potential risks to investors in SEC filings.
Facebook on Thursday also warned that the negative media attention it’s received since the Cambridge Analytica reports in March “could have an adverse effect on the size, engagement, and loyalty of our user base and result in decreased revenue, which could adversely affect our business and financial results.”