The Cambridge Analytica Scandal: Facebook's

Data Breach

In Fulfillment of the Subject Governance, Business Ethics, Risk

Researchers
Ryan Pagola
Armin Vasquez
Kimberly Ann Cubil
John Clyde Añora
Ronemie Ontejo

March 24, 2025

The Cambridge Analytica scandal, a turning point in the development of

data privacy and political manipulation, exposed the vulnerabilities inherent in the

apparently boundless reach of social media and the unregulated power of data analysis.

This multifaceted scandal, which broke in 2018, involved the harvesting and misuse of

personal data from millions of Facebook users by the defunct British political consulting

firm, Cambridge Analytica.

The scandal was not merely a technical transgression; it represented a profound ethical

breakdown, a blatant disregard of individual privacy rights, and a chilling demonstration

of how individual information could be manipulated in order to influence elections and

mold public opinion on a mass basis. The implications extended far beyond the

immediate actors, provoking a general public outcry, sweeping regulatory overhauls,

and a global rethinking of the relationship between technology, politics, and individual

liberty.

The epicenter of the controversy was the deceptive collection of user data through what

appeared to be an innocent personality quiz program, "This Is Your Digital Life," which

not only harvested data from its immediate users but also harvested the information of

their Facebook friends under the guise of then-looser Facebook data-sharing

guidelines.

The implications of this data breach were far-reaching, as Cambridge Analytica utilized

the gathered data to create detailed psychographic profiles of individuals. These profiles

were then used to offer highly targeted political advertisements, allegedly influencing
voters in significant political events like the 2016 U.S. presidential election and the

Brexit referendum. The scandal evoked global outrage, revealing Facebook's

inadequate data security protocols and initiating extensive scrutiny of the ethical impact

of data-focused technologies.

The long-term impact of the scandal remains, affecting today's debates regarding data

privacy legislation, the regulation of political advertising, and the broader social

implications of big data analysis.

STRENGTH

Market Dominance: Although it was subjected to massive criticism and public outrage,

the user base of Facebook continued to be large, reflecting its deep-rooted presence in

social media. This enabled the company to go on raking in the revenues and staying

relevant in the online advertising economy even during the controversy.

Financial Resources:

Facebook's large cash reserves helped it weather the financial fallout of the scandal,

such as massive fines and higher operational expenses. This financial cushion allowed

the company to keep investing in infrastructure and new projects without materially

affecting its core business operations.

Flexibility:

As a response to the scandal, Facebook took the initiative to revise its data policies,

reflecting a commitment to change according to regulatory pressures and public

expectations. This involved cutting down the visibility of user information to third-party
applications and applying tighter control on data access in order to avert future

exploitation.

OPPORTUNITIES

Regulatory Compliance:

The scandal acted as an eye-opener, underlining the need for tech firms to comply with

and surpass changing privacy regulations. Through adopting strong compliance

practices, Facebook can seize the opportunity to be a leader and redefine industry

norms for data protection.

Increased User Trust:

Facebook has a big chance to regain trust by clearly explaining its data practices and

giving users more control over their own information. More transparency and user

empowerment can result in higher engagement and a deeper sense of loyalty among its

users.

Privacy Tool Innovation:

as a leader in protecting user information. This will help Facebook stand out from its

peers and win over users who prioritize data protection.

ASPIRATIONS

Regaining Public Trust:

Facebook also seeks to regain public trust and its users' following the privacy scandal,

which damaged its reputation. It is not only a matter of changing policies but being

committed to ethical data practices and transparency.

World Leadership in Privacy:

The organization wants to be a benchmark for good data stewardship in the tech

industry, leading by example for how user data should be treated worldwide. This

mission involves embracing best practices, shaping industry norms, and pushing for

privacy-driven policies.

User-Centric Approach:
 Facebook aims to put user needs first by improving privacy controls and providing

people with more control over their online presence. By making users the focal point of

its design and policy-making, Facebook hopes to build a more privacy-aware and user-

friendly community.

RESULTS

Financial Impact:

The scandal resulted in a precipitous drop in the market value of Facebook, highlighting

the real-world financial impact of privacy breaches. The incident reminded everyone of

the need to keep users' trust and follow ethical data practices in order to protect

shareholder value.

Legal Implications:

Facebook was subjected to investigations and monetary fines by several regulatory

agencies across the globe due to the privacy scandal. Not only did these legal wars cost

a lot, but they also tarnished the reputation of the company, leading to possible long-

term effects.
User Backlash:

The crisis resulted in the reduction of active users, especially in North America and

Europe, indicating loss of confidence in Facebook's capability to safeguard user data.

This decline in confidence was a serious threat for Facebook to regain its users and

improve engagement levels.

Regulatory Changes:

The privacy debacle spurred the imposition of tighter privacy regulations, like GDPR, on

how businesses across the globe treat user data. This regulatory change forced

technology companies to re-evaluate their data habits and respect compliance with

shifting data defense laws.

Facebook's Responsibility

• Strengthening Data Protection Policies:

Facebook must implement stricter data protection policies that limit the access of third-

party apps to user data.

• Increased Transparency and Accountability:

Facebook should provide greater transparency about how it collects, uses, and shares

user data.

•Auditing Third-Party Apps:

Facebook should conduct regular audits of third-party apps to ensure they are

complying with its data protection policies.

•Data Deletion and Control:

Facebook should provide users with more control over their data, including the ability to

easily delete their information or restrict access to specific apps.

•Review App Permissions:

Users should carefully review the permissions requested by apps before granting them

access to their Facebook data.

• Limit Data Sharing:

Users should minimize the amount of personal information they share on Facebook,

including their birthday, hometown, and interests.

• Use Privacy Settings:

Facebook offers a variety of privacy settings that users can adjust to control who can

see their information.

• Consider Alternatives:

Users who are concerned about their privacy may want to consider using alternative

social media platforms that have stronger data protection policies.

⮚ Be Cautious with Apps

⮚ Carefully review and manage app permissions, granting access only to

trusted apps. Avoid apps that seem suspicious or collect unnecessary

data.

⮚ Limit Information Sharing

⮚ Avoid sharing sensitive personal data such as your address, birthdate, and

political affiliations. Be mindful of location settings and don't overshare your

whereabouts.

⮚ Data minimization

⮚ Collect only the minimum necessary data for legitimate purposes

⮚ Increased Platform Accountability

misuse by third-party apps. They should implement stronger security measures

to prevent unauthorized access to user data.

Conclusion

The Cambridge Analytica controversy is a sobering reminder of the

unbridled potential of data in the digital era. Even if the business is no longer in

operation, its legacy continues to influence discussions about political

manipulation, data privacy, and the obligations of tech companies. The

controversy made clear how easily enormous amounts of data can be gathered

and used as a political tool, as well as how vulnerable personal information is on

social media sites. At the time, there were lax laws and oversight, which made it

possible to take advantage of weaknesses and violate moral principles. The

ensuing aftermath raised user awareness of the possible dangers of disclosing

personal information online, prompted calls for greater data transparency and

accountability, and increased scrutiny of social media businesses. In the end,

the incident sparked a global discussion about how politics, technology, and

personal privacy interact; this discussion is still going strong today as new

problems and ethical dilemmas arise in the constantly changing digital world.
 The long-term effect is a greater understanding of the necessity of stricter laws

and a more conscientious approach to the gathering and use of data in all

industries.

References

⮚ Wikipedia contributors. (2025, March 9). Facebook–Cambridge Analytica data scandal.

Wikipedia. https://en.m.wikipedia.org/wiki/Facebook

%E2%80%93Cambridge_Analytica_data_scandal

⮚ Company, D. (2023, November 3). A breach of integrity: Facebook

Cambridge Analytica Scandal 2018.

https://www.linkedin.com/pulse/breach-integrity-facebook-cambridge-

analytica-scandal-2018-cmzse