When Will Hackers Take Down Facebook?

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By Douglas A. McIntyre Published
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Sony Corp. (NYSE: SNE) suffered potential revenue losses as hackers allowed file sharers to download hundreds of thousands of copies of some of its most important movie releases. Concerns have arisen that Russia cyber-criminals have already hacked into the U.S. power grid and eventually could interrupt the flow of electricity around the country. However, the ultimate hack is Facebook Inc. (NASDAQ: FB), which with its over 1.3 billion members has become a worldwide means of communication and a hack-proof system — at least so far.

A large hack of Facebook would not mean a great deal in terms of the revenue posted by America’s largest companies each quarter. In the most recent quarter, Facebook reported revenue of $3.2 billion. Investors in Facebook would suffer. Its market cap sits at just over $200 billion.

Facebook’s description of itself hints as the effects of a large hack:

Founded in 2004, Facebook’s mission is to give people the power to share and make the world more open and connected. People use Facebook to stay connected with friends and family, to discover what’s going on in the world, and to share and express what matters to them.

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Pew recently described the power of Facebook as a distribution system:

Last month’s report from the Pew Research Center on political polarization and media habits shows that social media is a prominent way people learn about government and politics. Indeed, this recent survey shows that 48% of internet-using adults reported getting news from Facebook in the previous week, rivaling well-known news media organizations. New data released here support the notion that two of the most prominent social networking sites, Facebook and Twitter, function very differently as sources of political information.

The research firm’s description covers Facebook’s use in America, not elsewhere across the world.

The second reason a large hack o Facebook would trigger huge concern is the supposition that it devotes a substantial amount of money and resources to keep its network safe, as well as member files that include personal information and often financial data like credit card numbers. Facebook can ill-afford an outage that lasts for any long period, or one that compromises its members’ financial data.

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The argument that Facebook eventually will suffer a major hack is that cyber-criminals have been able to hack other large consumer sites, and even online systems used by the U.S. government and some of America’s largest corporations.

If hackers want to take down what is perhaps the most visible network in the world and prove how adept they are at work that keeps no part of the Internet safe, they will hack Facebook.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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