It was big news in the tech world -- or at least it would have been if it had been true.
Google, so the story
went, had purchased ICOA, a Wi-Fi provider, for $400 million. Some news
organizations pounced, with everyone from long-established outlets like
The Associated Press to new-media tech blogs like TechCrunch reporting
the news Monday.
But hours later, both
companies would deny the story, which PR Web, a site that distributes
press releases for a fee, says was planted by someone falsely claiming to represent ICOA
Hoaxes have slipped their way into the public eye for as long as
journalism has existed. But media experts say the way bad information
spread so quickly casts a light on how reporting can go wrong in the
fast-paced world of Web journalism.
Long gone are the days
when newspapers and the evening TV news were the only game in town --
when reporters had hours, if not days, to sift through a report before
sharing it with the masses. In their place is an info-hungry Web that
wants news now and rewards the quick with a currency of page views,
Twitter links and Facebook "likes."
"With something like
this, there are a lot of blogs and websites that build their reputation
on the tech world," said Kelly McBride, a senior faculty member at the Povnter institute a nonprofit devoted to the study and teaching of journalism.
"If Google is spending
$400 million to buy something, there are people who are expected to have
something to say about that and they want to be in that mix."
The Onion:We just fool the Chinese Government
While a rush to get into
that mix as quickly as possible probably played a role, McBride said
there were multiple breakdowns in the Google-ICOA nonstory.
The first, obviously, was the person who -- according to PR Web owners Vocus -- impersonated an ICOA representative.
"Vocus reviews all press
releases and follows an internal process designed to maintain the
integrity of the releases we send out every day," the company said in a
written statement. "Even with reasonable safeguards identity theft
occurs, on occasion, across all of the major wire services. We have
removed the fraudulent release and turned the matter over to the proper
authorities for further investigation."
Vocus did not respond to messages Tuesday and Wednesday seeking further comment.Financial experts say the hoax looks like an illegal effort to inflate ICOA's meager stock.
Shares, which trade for a fraction of a penny, jumped in price
dramatically Monday and hundreds of millions of shares changed hands
before the stock was frozen.
ICOA CEO George Strouthopoulos told Mashable
a CNN content partner, that the release apparently originated in Aruba
and was sent from an e-mail account designed to look like an official
ICOA address.
But the most damning gaffe may have been PR Web's, McBride said.
Acquired by Vocus in 2006, PR Web aims to compete with the decades-old PR Newswire and other press-release outlets.
"Their quality-control
process in printing out press releases obviously has some problems,"
McBride said. "It's not just that they got 'hacked' -- but that it was a
pretty crappy press release."
The release had several
grammatical errors, included no contact information for representatives
of Google or ICOA, and didn't include biographical information about the
companies that is typical in releases from major corporations.
In a post title"How PRWeb helps distribute crap into Google and News Sites"
Danny
Sullivan of Search Engine Land searched PR Web and found one of the
Internet's ubiquitous "how to buy cheap Viagra" posts and other content
that would seem more at home in a spam e-mail than on a news site.
The final error, McBride
said, was on the part of reporters. Whether racing to publish fast or
working on analysis of the supposed purchase, news outlets missed what
should have been red flags.
"Journalists who were
looking at it should have spotted those same weak spots in the press
release and questioned whether it was real or not," she said. "Those
journalists were relying on PR Web to do that and they shouldn't have.
"It would be easy to
conclude that we're all going too fast. But it could be that we placed
way too much trust in PR Web ... and assuming it had the same checks and
balances and safety nets that other PR wires have."
(Full disclosure: Last year, this reporter, like others at numerous news outlets, was druped by pranksterswho created an entire website for a fictional consulting firm to
release a phony survey comparing the IQs of users of various Web
browsers.)
Perhaps helping push the fake ICOA story, McBride said, was the Web's ability to share news stories in real time.
"Once one organization
does it, other organizations tend to place even more blind faith," she
said. "Once the AP (for example) does it, then everyone does it."
The Associated Press retracted and issued a correction for the story. When contacted, an AP spokeswoman referred CNN to the wire services retraction which cited ICOA and "a person close to Google" as saying the original report was untrue.
TechCrunch apologized to its readers, both owning up to the error and appearing to take a shot at PR Web in the process.
"We were wrong on this
post, for not following up with Google and the other company involved
but posting rather than ... waiting on a solid confirmation beforehand
from either source," read an editor's note
atop the original post. "We apologize to our readers, to the companies
involved, and we'll be sure to act in a more responsible manner for
future stories, rather than trusting the word of a website that doesn't
necessarily hold itself up to any journalistic standards."
Forbes and Reuters were
among the other news outlets that reported the fake purchase, as were
popular tech sites PC Magazine, The Next Web, Business Insider,
Engadget, VentureBeat, The Verge and GigaOM. Other outlets, like MSNBC
and USA Today, ran the Associated Press account.