Why Facebook's Recent Hack Is 'Much Worse' Than Cambridge Analytica

Facebook, Inc. FB confirmed it was the victim of a hack that allowed unauthorized people to control around 50 million accounts. The revelation comes at a time when the Cambridge Analytica scandal is still fresh in many investors' minds, but there are a few key differences between the two breaches, according to Bloomberg's Sara Frier.

What Happened

The Cambridge Analytica scandal consisted of outsiders using information that Facebook users signed off on whether they understood what they were agreeing to or not, Frier said Monday on "Bloomberg Technology."

The recent hack against Facebook is "much worse," as it is a lot more than public information and includes private information, including the ability to log into every other app that has a Facebook login option, Frier said. 

Mark Ray, head of cyber defense at Nardello & Co., told Bloomberg that Facebook's latest breach is by far the worst it has suffered and "very large" when put in the context of data breaches suffered by any company.

Why It's Important

Facebook's recent breach shows the company had multiple vulnerabilities that were taken advantage by a sophisticated hacker who had deep knowledge of the platform, Ray said.

The sheer size of the hack implies it was conducted by "hacktivists," a foreign nation state or even an insider, Ray said. There could be some material motive beyond just selling 50 million users' information on the dark web, including the potential for espionage purposes, he said. 

What's Next

The FBI is investigating the hack at Facebook with a near-term objective of preserving perishable evidence that is still on its servers, Ray said.

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