A whistleblower complaint from Twitter Inc.\u2019s former head of security, claiming severe shortcomings in the social media company\u2019s handling of users\u2019 personal data, will have wide ramifications for the business.<\/p>\n
US lawmakers vowed to investigate, and the legal team for Elon Musk, who is seeking to abandon his agreement to acquire Twitter, was emboldened by the claims. Twitter shares fell as much as 5% on Tuesday, the biggest intraday drop in more than a month.<\/p>\n
The former executive, Peiter Zatko, alleged \u201cegregious deficiencies\u201d in Twitter\u2019s defences against hackers and other lax approaches to security, according to a copy of the complaint reviewed by Bloomberg.<\/p>\n
Zatko said he had warned colleagues that some of Twitter\u2019s servers were running out-of-date software and that executives had withheld information about breaches and lack of protections for user data.<\/p>\n
US House representatives confirmed the whistleblower complaint in a joint statement from Frank Pallone and Cathy McMorris Rodgers, the top Democrat and Republican on a House panel that received the report.<\/p>\n
\u201cThe Energy and Commerce Committee is actively reviewing the Twitter whistleblower disclosure and assessing next steps,\u201d they wrote.<\/p>\n
\u201cThere are still a lot of unknowns and questions that need to be answered. Many of these allegations, if true, are alarming and reaffirm the need for Congress to pass comprehensive national consumer privacy legislation to protect Americans\u2019 online data.\u201d<\/p>\n
Thousands of employees also had access to core company software, which led to hacks of high-profile users, according to the report.<\/p>\n
The Washington Post, which\u00a0first reported<\/a><\/strong>\u00a0on the complaint along with CNN, said it was sent to the US Securities and Exchange Commission, the Justice Department and the Federal Trade Commission.<\/p>\n The DOJ, FTC and SEC declined to comment.<\/p>\n The whistle-blower document also alleged that Twitter prioritized growth over reducing the number of spam accounts, offering executives cash bonuses of as much as $10 million tied to increasing the number of daily users.<\/p>\n Spam and \u201cbots\u201d on Twitter have been a key flash point in the company\u2019s dispute with Musk.<\/p>\n Musk\u2019s lawyers also said Tuesday that they have issued a subpoena for Zatko to testify in the court battle. Legal experts said\u00a0Zatko\u2019s complaint bolsters Musk\u2019s case<\/a><\/strong>.<\/p>\n Twitter pushed back. \u201cWhat we\u2019ve seen so far is a false narrative about Twitter and our privacy and data security practices that is riddled with inconsistencies and inaccuracies and lacks important context,\u201d a Twitter spokesman said when contacted for comment by Bloomberg.<\/p>\n \u201cZatko\u2019s allegations and opportunistic timing appear designed to capture attention and inflict harm on Twitter, its customers and its shareholders. Security and privacy have long been company-wide priorities at Twitter and will continue to be.\u201d<\/p>\n Twitter said Zatko was fired in January for \u201cineffective leadership and poor performance.\u201d Bloomberg was unable to reach Zatko for comment. Whistleblower Aid, which represents him, said he stands by his disclosures.<\/p>\n \u201cHis career of ethical and effective leadership speaks for itself,\u201d John Tye, chief disclosure officer of Whistleblower Aid, said in an emailed statement.<\/p>\n \u201cThe focus should be on the facts laid out in the disclosure, not ad hominem attacks against the whistle blower.\u201d<\/p>\n In a memo reviewed by Bloomberg, Chief Executive Officer Parag Agrawal told employees it was likely \u201cfrustrating and confusing to read\u201d the complaint, \u201cgiven Mudge was accountable for many aspects of this work that he is now inaccurately portraying more than six months after his termination.\u201d<\/p>\n Agrawal warned of further distractions and said he will address employees at a meeting Wednesday.<\/p>\n Musk made a reference to the claims\u00a0via Twitter<\/a>, with an image of the \u201cPinocchio\u201d character Jiminy Cricket saying \u201cgive a little whistle,\u201d a line from his signature song about listening to your conscience.<\/p>\n\u2018Serious Concerns\u2019<\/h3>\n