How the Facebook privacy scandal is changing credit union security
Recently Facebook experienced the largest one-day drop in history when it’s stock price plummeted $41.24, which turned out to be a decrease just shy of 20%. Facebook’s stock price has proven to be volatile throughout 2018 between decreasing user engagement, the Cambridge Analytica data breach, and Zuckerberg’s highly televised testimony to Congress. However, the biggest hit came at the end of July when Facebook released its Q2 earnings report, which unsettled investors once they saw a decline in active Facebook users, new obstacles emerging from Europe’s updated privacy laws, and concerns regarding the monetization of ads on Instagram leading to an overarching concern about Facebook’s potential profitability moving forward. Despite the variety of issues that led to Facebook’s demise in the stock market, the source of these problems all stems from one place: Security.
Facebook has been open about their neglect in protecting the privacy of their users, which ultimately led to a decline in user activity, and heightened focus on the protection and security of consumer data. In his testimony to Congress, Mark Zuckerberg took responsibility for Facebook’s missteps in regulating privacy: “It’s not enough to give people control of their information, we have to make sure developers they’ve given it to are protecting it too.” The Facebook scandal has been a cautionary tale not only within the social media space, but across all industries that have reasonable responsibility for their user’s data. For the financial industry especially, it’s more important than ever to ensure member information is protected and secure.
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