JAKARTA - Twitter Inc. has reportedly lied to federal regulators about its defenses against hackers and spam accounts. This was revealed by the former head of security for social media company Peiter Zatko in a whistleblower complaint.
In the 84-page complaint, Zatko, a notorious hacker widely known as "Mudge," accused Twitter of falsely claiming it had a solid security plan. This Zatko document has also been submitted by investigators at the congress. As a result of the report, Twitter shares immediately plunged and fell 7.3% to close at 39,865 US dollars.
The document accuses Twitter of prioritizing user growth over reducing spam, with executives eligible to win individual bonuses of as much as $10 million tied to daily user gains, and none explicitly cutting spam accounts.
While Twitter itself called the complaint a "false narrative." The social media company has fought Elon Musk in court after the world's richest man tried to pull out of a $44 billion deal to buy Twitter. Musk said Twitter had failed to provide details on the prevalence of bot and spam accounts.
Tesla Inc CEO has previously wanted to buy Twitter at a price of 54.20 US dollars per share. He also said that he believed it could turn this global platform into an arena for free speech.
Twitter and Musk have sued each other in court. Twitter asked a judge in the Delaware Court of Chancery to order Musk to close the acquisition deal. The hearing is scheduled for October 17.
Zatko filed a complaint last month with the US Securities and Exchange Commission and the Department of Justice, as well as the Federal Trade Commission (FTC). Complaints are also sent to congressional committees.
"We are reviewing edited claims that have been published but what we have seen so far are false narratives full of inconsistencies and inaccuracies," Twitter's Chief Executive, Parag Agrawal, told employees in a memo.
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Senate Judiciary Committee member Chuck Grassley said the complaint raised serious national security and privacy concerns and needed to be investigated.
"Take a technology platform that collects massive amounts of user data, combine it with what appears to be a very weak security infrastructure, and plug it in with foreign state actors with specific agendas, and you've got a recipe for disaster," he said.
The FTC declined to comment on the matter. A spokesman for the Senate Intelligence Committee said it had received the complaint and held a meeting to discuss the allegations.
"Twitter's true regulatory risk lies in whether the documentary evidence shows "knowing or recklessly misled" investors or regulators," said Howard Fischer, partner at Moses & Singer and former SEC attorney.
Elon Musk quips Twitter
Elon Musk could not be reached for comment on the allegations. But he reacted on Twitter with memes and robot emojis. Musk's legal team has summoned Zatko, after the disclosure of the whistleblower's name was announced by CNN.
Most recently, Musk made a tweet on his Twitter account with a picture that read "Give a Little Whistle".
— Elon Musk (@elonmusk) August 23, 2022
American hackers have admired Zatko since the 1990s, when he was credited with inventing a tool to crack passwords. He then used his hacking skills to become the most sought-after security consultant of the era.
The whistleblower document also says that following the January 6 riots, the upcoming Biden administration offered him "the designated position of Chief Information Security Officer for the United States," but he declined.
Cybersecurity leaders expressed broad support for Zatko, and many lamented Twitter's reaction to the disclosure of their flaws and disgrace.
Robert Lee, founder of industrial cybersecurity firm Dragos, said it was "one of those very rare times based on who I am, I don't even need to know the details to form an opinion," he said on Twitter. "If Mudge makes a claim like this, it's worth investigating," Lee said.
In January, Twitter said Zatko was no longer head of security or two years after his appointment to the role.
On Tuesday, August 23, a Twitter spokesperson said Zatko was fired for "ineffective leadership and poor performance." He added that his allegations appeared to be designed to attract attention and cause harm to Twitter, its customers, and shareholders.
Debra Katz and Alexis Ronickher, Zatko's attorneys, said in a statement that throughout her tenure at Twitter, she repeatedly raised concerns about inadequate information security systems to the social media company's executive committee, CEO, and corporate boards. But Twitter did not respond to a request for comment on the statement.
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