Facebook CEO warns users, investors of more data leaks

World famous Facebook Inc is on the hound for other Cambridge Analytica-sized data leaks, and the company on Thursday (April 26) warned its users and investors that they might not like what it finds.

In its quarterly report shared with the US Securities and Exchange Commission (SEC), without mentioning Cambridge Analytica, Facebook has said it expects to discover and announce more “instances of misuse of user data or other undesirable activity by third parties.” This could also expose Facebook to more regulatory risk, fines and penalties.

"We may also be notified of such incidents or activity via the media or other third parties," Facebook said on Thursday. Either way, "the discovery of the foregoing may negatively affect user trust and engagement, harm our reputation and brands, and adversely affect our business and financial results," the world’s biggest social-media giant 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 online or offline, or instances of spamming, scraping, or spreading misinformation," the company said.

Facebook chief executive Mark Zuckerberg, who has spent most of the past month on the fallout from the revelations on the hijacking of personal data by a political firm, sought to reassure investors in the latest update. "Despite facing important challenges, our community and business are off to a strong start in 2018," Zuckerberg said.

"We are taking a broader view of our responsibility and investing to make sure our services are used for good. But we also need to keep building new tools to help people connect, strengthen our communities, and bring the world closer together." Facebook shares climbed more than 4.7 percent to USD 167.33 in after-hours trades that followed the release of the earnings figures.