This is typical example of relying too much on Social Media Data Mining and let Computers and Algorithms act on their own without human intervention.
In case you haven't caught up.. yesterday Dow lost almost 250 points in matter of few minutes wiping out almost 200 billion USD worth Market Cap. For some reasons, there wasn't enough liquidity in market (I can't understand this.. please review link from WSJ below) so it couldn't go further down. Otherwise, it could have easily triggered chain reaction and invoked all Computer Algorithms supposedly designed to safeguard respective portfolios.
The tweet responsible for this came from hacked twitter account of AP. As per tweet, there were some 2 bomb blasts in white house and President Obama was hurt.. Just one fake.. fraud tweet can clean up $200B!!!
I think, given the relative immaturity of Social Media Mining and associated Business Intelligence.. it was bound to happen.. However, it will be matter of time when algorithms will become even more mature and resilient to such actions.. at the same time hackers will also.. so this cat-mouse game is going to continue forever.. Only new angle we need to be aware is that this new area of reliance on Social Media for news and security breach.
All this may not effect your inbox or add new fraud credit card charges but it may impact you in your retirement accounts or brokerage accounts.. The added cost of securing and building defense against such attacks is definitely going to impact you in some form or other for sure..
http://online.wsj.com/article/SB10001424127887323735604578441201605193488.html
In case you haven't caught up.. yesterday Dow lost almost 250 points in matter of few minutes wiping out almost 200 billion USD worth Market Cap. For some reasons, there wasn't enough liquidity in market (I can't understand this.. please review link from WSJ below) so it couldn't go further down. Otherwise, it could have easily triggered chain reaction and invoked all Computer Algorithms supposedly designed to safeguard respective portfolios.
The tweet responsible for this came from hacked twitter account of AP. As per tweet, there were some 2 bomb blasts in white house and President Obama was hurt.. Just one fake.. fraud tweet can clean up $200B!!!
I think, given the relative immaturity of Social Media Mining and associated Business Intelligence.. it was bound to happen.. However, it will be matter of time when algorithms will become even more mature and resilient to such actions.. at the same time hackers will also.. so this cat-mouse game is going to continue forever.. Only new angle we need to be aware is that this new area of reliance on Social Media for news and security breach.
All this may not effect your inbox or add new fraud credit card charges but it may impact you in your retirement accounts or brokerage accounts.. The added cost of securing and building defense against such attacks is definitely going to impact you in some form or other for sure..
http://online.wsj.com/article/SB10001424127887323735604578441201605193488.html
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