Facebook Responds To WSJ Report On Financial Data Requests

August 7, 2018
Facebook Responds To WSJ Report On Financial Data Requests August 9, 2018 Clive Nelson https://plus.google.com/110107075468979879828/

facebookFacebook is once again the target of controversy. After the PR debacles earlier this year and the recent downturn in its stock prices, the social media giant seems to have slipped again as the Wall Street Journal reported Facebook recently requested some of the biggest banks in America for financial data concerning their users.

Facebook framed the requests as a way to give their customers real time data updates on their current checkbook balance via Facebook Messenger, as well as being in a position to alert users of potential fraud.

However, this request immediately stalled as one of the banks actually pulled out of the talks because of privacy concerns.

Fox Business

This request for customer financial data comes at a bad time for Facebook. The company recently witnessed market wipeout of $120 billion in a single day as reports of a slowdown in growth were released from Facebook offices.

It does not help that request for confidential financial data from Facebook has many people remembering the report early this year that data mining firm Cambridge Analytica secretly collected data from more than 50 million Facebook users in a massive breach of privacy. This caused a $30 billion stock loss in early March of this year. Things got so bad that Facebook CEO Mark Zuckerberg had to testify before the US Congress.

Facebook Responds To Financial Data Request

Facebook has tried to clear things up and says that the data request is a pretty routine request in business operations. However, the general public is still doubtful about Facebook's intent given the social media company's history of problematic handling of data.

In a statement, Elisabeth Diana, a spokeswoman for Facebook said

Like many online companies with commerce businesses, we partner with banks and credit card companies to offer services like customer chat or account management. Account linking enables people to receive real-time updates in Facebook Messenger where people can keep track of their transaction data like account balances, receipts, and shipping updates

Diana also pointed out that other companies have done something similar with account linking and offering their customers real time updates. PayPal was her main example, with the payments company offering the service for Citi customers in Singapore and American Express customers in the US.

Diana emphasizes that Facebook will not be using the financial data in any other way other than providing users with additional functionality. She also says that the program is completely opt-in, with users having the option of saying ‘No’ they do not want to share their financial data with Facebook.

About the Author

Clive Nelson

Clive Nelson Author

Hi, my name is Clive Nelson and welcome to Traders Bible. Just to tell you bit about myself…I have been trading FX and binary options for the best part of 10 years now. After graduating with honours in economics, I began working for an investment bank in New York as an assistant trader before working my way up. After a few years, I went on to work as a broker in London, England and then eventually came back to the U.S to work in a hedge fund, where I manage $800 million of my clients’ investments. There have been times over the course of my career where I’ve had to take a hit, but I’ve accepted that losing is part of the game, it’s a learning curve. I’ve learnt from my mistakes and you don’t have to make the same errors I did. A lot of my education came from when I was a broker and this is why I’m here to tell you that Traders’ Bible offers you the foundations of how to become a great trader.

Related Articles

Bitcoin Investors Concerned As It Takes A Massive Plunge

For many Bitcoin investors, last week was a pretty stunning week as the cryptocurrency finally stopped its rise and started

GoPro turns weak as Google launches AI based camera

On the basis of an upward revision of fiscal 2017 third-quarter outlook, on September 13th , there was a predicted

Euro remains weak on lackluster economic growth

The outcome of the Brexit referendum hardly allowed any kind of recovery in the Euro dollar, so far, against any