Facebook loses more than 53 million euros on the stock market due to poor data management

Cambridge Analytica, The data analytics company obtained Facebook's information without its consent. over 50 million profiles. This information was used for advertising purposes, something that both Facebook and the users were unaware of.

How did Cambridge Analytica do it?

The data company made one of the applications that Facebook has; it consisted of a personality test in which users had to demonstrate they knew their friends by answering personal questions. To take and answer the test You had to agree to give your Facebook profile data to the application.This test went viral, and as people took the test, Cambridge Analytica's database grew to the point of obtaining data from more than 50 million users.

What did he do with the Facebook data?

This data according to Christopher Wylie Company employees were grouped homogeneously in order to have diverse psychological profiles and to carry out more personalized and at the same time more effective advertising campaigns, since the profiles' preferences were known. This data, in addition to benefiting private companies, has helped to carry out marketing more effectively. US political campaigns, Specifically, the 2016 election in which Donald Trump was proclaimed president.

The importance of data protection

Currently, a large amount of data is being collected on different internet platforms as technology advances. Data is becoming increasingly valuable, Therefore, the law must adopt new ways to protect users from misuse. New European regulations on [the use of these technologies] came into force in May 2018. data protection, European companies must adapt and comply rigorously to avoid penalties. The significant risks associated with the misuse of personal data mean that these sanctions can reach up to €20 million or 41% of the company's turnover.

That's why it's important for companies to know how to properly manage the data they collect, respecting the user and using their data with their consent, relying on professionals In data management, most users accept data without knowing what is done with it. It is essential that people are well informed, understand what they are exposing themselves to, and know what companies do with their data.