[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2018\/10\/02\/facebook-hacked-now-facing-the-wrath-of-gdpr-and-1-63-billion-in-fines\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2018\/10\/02\/facebook-hacked-now-facing-the-wrath-of-gdpr-and-1-63-billion-in-fines\/","headline":"Facebook hacked: Facing the wrath of GDPR, possible $1.63 billion in fines","name":"Facebook hacked: Facing the wrath of GDPR, possible $1.63 billion in fines","description":"The Facebook hack compromised over 50 million user accounts, and all eyes are upon the EU as they look to enforce the first major fine of the GDPR - up to $1.63 billion.","datePublished":"2018-10-02","dateModified":"2022-05-02","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/jenn-vande-zande\/#Person","name":"Jenn Vande Zande","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/jenn-vande-zande\/","identifier":229,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/ef76ed873963201b65acc65a3cb353caa294225a4e9a8427f011077842dd955c?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/ef76ed873963201b65acc65a3cb353caa294225a4e9a8427f011077842dd955c?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2018\/10\/thumbnail-628cd6f38c90b36a178d545e66d00a37.jpeg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2018\/10\/thumbnail-628cd6f38c90b36a178d545e66d00a37.jpeg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2018\/10\/02\/facebook-hacked-now-facing-the-wrath-of-gdpr-and-1-63-billion-in-fines\/","about":["Consent data management",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/customer-data\/","name":"Customer Data","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data","http:\/\/www.wikidata.org\/entity\/Q56278300"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/marketing\/customer-engagement-marketing\/","name":"Customer Engagement","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_engagement","http:\/\/www.wikidata.org\/entity\/Q5196451"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/","name":"Customer Experience","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_experience","http:\/\/www.wikidata.org\/entity\/Q984142"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/cdp-customer-data-platform-solution\/data-privacy\/","name":"Data Privacy: Laws, Consumer Expectations","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Consumer_privacy"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/gdpr\/","name":"GDPR","sameAs":["https:\/\/en.wikipedia.org\/wiki\/General_Data_Protection_Regulation","http:\/\/www.wikidata.org\/entity\/Q1172506"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/intelligent-enterprise\/","name":"Intelligent Enterprise","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Intelligent_enterprise","http:\/\/www.wikidata.org\/entity\/Q6044119"]}],"wordCount":626,"keywords":["Consent Data Management","Consumer Data Privacy","Cybersecurity","Data Breach","Data Compliance","Data Privacy","Facebook","GDPR","GDPR Fines"],"articleBody":"Last year, before the EU\u2019s General Data Protection Regulation, or GDPR, went into effect, we posited this question: \u201cWhat if mis-managing customer data could cost your company 20 million Euros or four percent of global revenue \u2013 whichever is greater?\u201dNobody seemed overly concerned that the maximum penalty for non-compliance with GDPR would allow a company to be fined just that.At the time, the numbers seemed so excessive that many people assumed it was a scare tactic rather than a real threat.How times have changed.      What is GDPR and how will it affect your business?                Understanding the nuance of customer consent and legitimate interest is key to GDPR compliance. Customer consent is considered the gold standard of data collection - with good reason. A consent management platform supports compliance.      Holy hack, Batman: Potential $1.63 billion in fines after Facebook hackedOrganizations of all sizes have been wondering how penalties for the GDPR would play out, but when Facebook stunned the world over the weekend, disclosing a hack that allowed attackers to gain access tokens to at least 50 million accounts, companies began paying attention.Ireland\u2019s Data Protection Commission (DPC) watchdog group is not happy, and are threatening Facebook with a fine as large as $1.63 billion in response to the hack.The DPC specifically expressed concern that despite the Facebook hack being discovered several days before the announcement, to date, there is still not a clear picture of the nature of the breach, and its potential risk to users.If successfully prosecuted, this would mark the first $1 billion-plus enforcement event since the GDPR regulation took effect, and would certainly seem to back up language in many of its articles, including this:\u201cConsistent enforcement of the data protection rules is central to a harmonized data protection regime. Administrative fines are a central element in the new enforcement regime introduced by the Regulation, being a powerful part of the enforcement toolbox.\u201d Corrective measures, the guidelines continue, should be \u201ceffective, proportionate and dissuasive.\u201dEssentially, the EU has put a structure in place for authorities in each member nation to assess fines under GDPR, and has encouraged them to set big fines for big violations when companies violate data compliance.      GDPR fines skyrocket as regulators crack down on privacy violations                GDPR fines soared in the third quarter, highlighting the growing risk businesses face as European regulators scrutinize data privacy practices.      Goliath awakening: The biggest companies have the most to loseAs we\u2019re seeing this week, the largest companies are especially vulnerable, because the guidelines say the maximum penalty of 4 percent of global revenue applies to the parent company \u2013 not just an individual business unit that goes astray.Some of the triggers for enforcement laid out in GDPR guidelines include:Top management deliberately abusing customer privacy rights, such as \u201cselling data as \u2018opted in\u2019 without checking\/disregarding data subjects\u2019 views about how their data should be used.\u201dIgnoring advice from the organization\u2019s data protection officer (DPO), a new watchdog role required under GDPR.Organizations failing to adopt \u201cstructures and resources adequate to the nature and complexity of their business \u2026 (organizations) cannot legitimize breaches of data protection law by claiming a shortage of resources.\u201dIn plain language, the EU is saying it won\u2019t accept \u201cthe dog ate my homework\u201d excuses. The only effective way organizations can protect themselves from potentially crippling fines is to understand the GDPR and follow its rules.The reality is that ignoring GDPR can be an existential threat to the corporate bottom line, and the precedent set by EU authorities will undoubtedly change the conversation for many other U.S.-based companies serving consumers in the EU.  Your competitionwants your customers.Is your brand built to keep them?Unlock strategies to power your enterprise HERE."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2018","item":"https:\/\/www.the-future-of-commerce.com\/2018\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"10","item":"https:\/\/www.the-future-of-commerce.com\/2018\/\/10\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"02","item":"https:\/\/www.the-future-of-commerce.com\/2018\/\/10\/\/02\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Facebook hacked: Facing the wrath of GDPR, possible $1.63 billion in fines","item":"https:\/\/www.the-future-of-commerce.com\/2018\/10\/02\/facebook-hacked-now-facing-the-wrath-of-gdpr-and-1-63-billion-in-fines\/#breadcrumbitem"}]}]