Facebook Stocks Down Due to Possible GDPR Breach

Facebook reported it has experienced a security breach, which affected up to 50 million user accounts. Irish regulatory body is reportedly planning to launch an investigation into the case.

2 October 2018 – The Irish regulatory authority reportedly opened an IT attack case that enabled hackers to access Facebook accounts up to 50 million. The Irish regulator is intending to launch an official probe based on the new European data management rules that could potentially expose the Internet giant to huge fines for a number of serious data breaches. 

Facebook Security Breach Exposes 50M Accounts

The biggest social media network in the world stated that hackers had stolen keys that enabled them to access almost 50 million user accounts. According to the Irish regulator, less than 10% of potentially impacted users were in the EU. 

A spokesman for Helen Dixon, the Irish data commissioner, has been quoted as saying:

“Before we would launch any investigation there are steps that would have to be taken in relation to information gathering and preparing the scope of an inquiry. Furthermore, we would need to establish under which provisions of the Data Protection Act 2018 we would conduct it. We are currently engaged in those steps.” 

It is expected that an inquiry is now inevitable, with any probe regarded as an important test for Ms. Dixon’s office under the new regulations. 

Will Facebook face fines?

Online reports also quote Liam McKenna, a partner at Mazars accountants in Dublin, stating that the Facebook breach was a “very significant” event. McKenna added that Ms. Dixon was “under pressure to be seen to respond”. 

It is understood that under GDPR, Ms. Dixon has the authority to impose fines up to 4 percent of a company’s global turnover. Facebook’s turnover in 2017 stood at $40,65 billion. 

The Irish regulator stated that while Facebook has quickly alerted authorities about the breach, the notification “lacked detail”. Moreover, the regulator noted that it is worried about the company’s inability to clarify the nature of the breach and the following risks for users. 

Mr. McKenna of Mazars has been quoted as saying:

“What’s not clear is who are these people. What data did they get? And what are they going to do with it? If that’s a bad story then you would expect there to be consequences for Facebook. But we don’t know yet if that’s the case.” 

What should companies know about GDPR?

Facebook Stock Analysis

The senior market analyst with AtoZ Markets, Amandeep Sonewane, has shared his opinion regarding the FB stock price:

“Facebook Inc. (NASDAQ: FB) was closed at 162.44 USD (-1.23%) with the lows at $161.26 per share. Currently, the stock has a total market cap of around 469 Billion. In the last 20-day duration stock’s MA was 164.95 and the Average Volume of this company’s shares was 25,926,660. Looking at the technical charts, the stock looks bearish for the day trading.

He further added:

“Moreover, FB stock remained 2.4% volatile for recent the week and -0.69% for the current month. The stock is trading near the strong daily support levels if it fails to hold this level than a break below $159 might be seen.”

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