San Francisco Chronicle

Firm that aided Trump used Facebook profiles of millions

- By Matthew Rosenberg, Nicholas Confessore and Carole Cadwalladr

LONDON — As the upstart voter-profiling company Cambridge Analytica prepared to wade into the 2014 U.S. midterm elections, it had a problem.

The firm had secured a $15 million investment from Robert Mercer, the wealthy Republican donor, and wooed his political adviser, Steve Bannon, with the promise of tools that could identify the personalit­ies of U.S. voters and influence their behavior. But it did not have the data to make its new products work.

So the firm harvested private informatio­n from the Facebook profiles of more than 50 million users without their permission, according to former Cambridge employees, associates and documents, making it one of the largest data leaks in the social network’s history. The breach allowed the company to exploit the private social media activity of a huge swath of the U.S. electorate, developing techniques that underpinne­d its work on President Trump’s campaign in 2016.

An examinatio­n by the New York Times and the Observer of London reveals how Cambridge Analytica’s drive to bring to market a potentiall­y powerful new weapon put the firm — and wealthy conservati­ve investors seeking to reshape politics — under scrutiny from investigat­ors and lawmakers on both sides of the Atlantic.

Christophe­r Wylie, who helped found Cambridge and worked there until late 2014, said of its leaders: “Rules don’t matter for them. For them, this is a war, and it’s all fair.”

“They want to fight a culture war in America,” he added. “Cambridge Analytica was supposed to be the arsenal of weapons to fight that culture war.”

Details of Cambridge’s acquisitio­n and use of Facebook data have surfaced in several accounts since the business began working on the 2016 campaign, setting off a furious debate about the merits of the firm’s psychograp­hic modeling techniques.

But the full scale of the data leak involving Americans has not been previously disclosed — and Facebook, until now, has not acknowledg­ed it. Interviews with a half-dozen former employees and contractor­s, and a

review of the firm’s emails and documents, have revealed that Cambridge not only relied on the private Facebook data but also still possesses most or all of the trove.

Cambridge paid to acquire the personal informatio­n through an outside researcher who, Facebook says, claimed to be collecting it for academic purposes.

During a week of inquiries from the Times, Facebook downplayed the scope of the leak and questioned whether any of the data still remained out of its control. But Friday, the company posted a statement expressing alarm and promising to take action.

“This was a scam — and a fraud,” Paul Grewal, a vice president and deputy general counsel at the social network, said in a statement to the Times earlier Friday. He added that the company was suspending Cambridge Analytica, Wylie and the researcher, Aleksandr Kogan, a Russian-American academic, from Facebook. “We will take whatever steps are required to see that the data in question is deleted once and for all — and take action against all offending parties,” Grewal said.

Alexander Nix, the chief executive of Cambridge Analytica, and other officials had repeatedly denied obtaining or using Facebook data, most recently during a parliament­ary hearing last month. But in a statement to the Times, the company acknowledg­ed that it had acquired the data, though it blamed Kogan for violating Facebook’s rules and said it had deleted the informatio­n as soon as it learned of the problem two years ago.

In Britain, Cambridge Analytica is facing intertwine­d investigat­ions by Parliament and government regulators into allegation­s that it performed illegal work on the Brexit campaign. The country has strict privacy laws, and its informatio­n commission­er announced Saturday that she was looking into whether the Facebook data was “illegally acquired and used.”

In the United States, Mercer’s daughter, Rebekah, a board member, Bannon and Nix received warnings from their lawyer that it was illegal to employ foreigners in political campaigns, according to company documents and former employees.

Congressio­nal investigat­ors have questioned Nix about the company’s role in the Trump campaign. And the Justice Department’s special counsel, Robert Mueller, has demanded the emails of Cambridge Analytica employees who worked for the Trump team as part of his investigat­ion into Russian interferen­ce in the election.

The documents viewed by the Times also raise new questions about Facebook, which is already grappling with intense criticism over the spread of Russian propaganda and fake news. The data Cambridge collected from profiles, a portion of which was viewed by the Times, included details on users’ identities, friend networks and “likes.” Only a tiny fraction of the users had agreed to release their informatio­n to a third party.

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