The Facebook-Cambridge Analytica Data Scandal: A Case Study in Ethical AI Failures and Data Privacy Violations

The Facebook-Cambridge Analytica scandal represents one of the most significant breaches of data privacy and ethical standards in the digital age. This case study examines how Cambridge Analytica harvested personal data from approximately 87 million Facebook users without explicit consent to create psychological profiles for political micro-targeting. The analysis identifies violations of fundamental ethical AI principles including informed consent, transparency, data minimization, and accountability. Through examination of the incident's mechanisms, impacts, and regulatory responses, this paper proposes comprehensive mitigation strategies encompassing technical safeguards, regulatory frameworks, and organizational governance structures.