ELECTION gurus for hire firm Cambridge Analytica faces investigations by watchdogs in the UK and the US, as the row over allegations of honey traps, bribery, prostitution, propaganda and harvesting of data from tens of millions of Facebook users intensifies.
The British research company, which has connections to Steve Bannon and which boasted of helping Donald Trump win the US presidency in 2016, stands accused of telling clients that it was willing offer very dark services to help win elections and influence voters.
Undercover reporters from Channel 4 News recorded the firm’s CEO, Alexander Nix, who was suspended last night admitting to creating fake news. “It sounds a dreadful thing to say, but these are things that don’t necessarily need to be true as long as they’re believed,” he said.
In a statement, the board of Cambridge Analytica said Nix had been suspended "with immediate effect, pending a full, independent investigation" It said his comments in the Channel 4 News recording and "other allegations" did not represent "the values or operations of the firm" and that his suspension "reflects the seriousness with which we view this violation".
The journalists posed as representatives of a wealthy Sri Lankan family seeking political influence. Nix told them on camera that while the firm would primarily be looking for political dirt, it could do more.
“Oh, we do a lot more than that,” he said. “Deep digging is interesting, but you know equally effective can be just to go and speak to the incumbents and to offer them a deal that’s too good to be true and make sure that that’s video recorded. You know these sort of tactics are very effective, instantly having video evidence of corruption.”
Nix suggested one possible scenario, in which the managing director of Cambridge Analytica’s political division, Mark Turnbull, would pose as a wealthy developer looking to exchange campaign finance for land.
Another option, Nix suggested, would be to create a sex scandal. “Send some girls around to the candidate’s house, we have lots of history of things,” he told the reporters. “We could bring some Ukrainians in on holiday with us, you know what I’m saying.”
He added: “Please don’t pay too much attention to what I’m saying, because I’m just giving you examples of what can be done, what has been done.”
Nix also appeared to suggest Cambridge Analytica covers its traces using a network of names and front groups.
Revelations in the Observer last Sunday suggested the company illicitly used data from tens of millions of Facebook users without their permission.
The company, initially called SCL Elections, was bought by Robert Mercer, the secretive Trump supporting hedge fund billionaire, before being renamed Cambridge Analytica.
One former employee described the operation as a “psychological warfare firm”.
It is alleged the company has told clients they can win votes by using data, mined from social media, which could the be used to target specific messages to specific groups, often enraging and mobilising those groups.
Cambridge Analytica said the Channel 4 News investigation contained false claims, factual inaccuracies and substantial mis-characterisations.
It said: “We entirely refute any allegation that Cambridge Analytica or any of its affiliates use entrapment, bribes or so-called honey-traps for any purpose whatsoever ... Cambridge Analytica does not use untrue material for any purpose.”
On the responses given to the Channel 4 News reporters, it said: “Our executives humoured these questions and actively encouraged the prospective client to further disclose his intentions.”
The Information Commissioner, Elizabeth Denham, is now seeking a warrant to examine Cambridge Analytica’a activities. The company is also reported to be the subject of a US Federal Trade Commission investigation. Meanwhile, Facebook CEO Mark Zuckerberg to appear before a House of Commons select committee to explain how Cambridge Analytica obtained so much user data.
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