26 Apr 2013
Two factors caused the “hack crash” earlier this week: algorithmic trading and poor security on the Associated Press’s Twitter feed.
Algorithmic trading is omnipresent and will only become more sophisticated — even as regulators put mechanisms in place to counter abrupt, massive swings.
That said, I don’t foresee a program being able to identify false tweet from a previously reliable source.
While I’m sure this incident will cause every social media manager out there to have better password hygiene, it’s interesting to consider along side some of the incorrect reports that came out during the Boston Marathon bombing investigation (most notably from CNN).
In our keyword and sentiment analysis-driven world, even one erroneous piece of information from a reputable source will send others spinning to confirm or deny — that’s not new. But what is new is the speed with which an error will ripple across the financial markets, government, and other engines of society.
While the AP’s hacked tweet was quickly discredited, I’d argue that the bar for news organizations of all stripes (professional and otherwise) is higher than ever.
Given the recent failures, however, news consumers must be more alert than ever, hopefully pausing to think and maybe check a second source before hitting retweet.
Similar to the adage “you are what you eat,” you’re also what you share.
(via Infographic: The fake-tweet retreat explained - The Tell - MarketWatch)
