A PYMNTS Company

SEC Investigates Twitter’s Security Lapse Pre-Elon Musk Acquisition

By  |  October 11, 2023

The Securities and Exchange Commission (SEC) is currently conducting an investigation into Twitter Inc.’s handling of a 2018 security breach that exposed users’ personal information prior to Elon Musk’s acquisition of the platform last year.

The SEC’s inquiry centers on whether former top executives failed to adequately disclose the privacy breach to shareholders and implement necessary security controls.

An undisclosed source has revealed this information, as the investigation remains confidential. The breach in question allowed unauthorized parties to access user email addresses during password resets, effectively revealing users’ identities.

Related: Musk Facing SEC Lawsuit Over Twitter Takeover

This incident occurred during Jack Dorsey’s tenure as CEO, with Ned Segal as CFO and Parag Agrawal serving as the chief technology officer. Bloomberg News initially reported on the security flaw.

Source: Bloomberg