Twitter Hit With $150 Million Fine For Using Two-Factor Authentication Data For Marketing
from the not-helping dept
While a lot of the scandals surrounding “big tech” have been overblown, one that hasn’t been discussed enough is Silicon Valley companies’ abuse of user two-factor authentication data. If you’ve been napping, two-factor authentication (preferably of the email variety) helps protect your accounts from being compromised by hackers.
But when both Facebook and Twitter implemented it, company executives apparently thought it would be a great idea to use the email and phone data collected for marketing purposes. That’s a massive problem, as it completely undermines trust in the two-factor authentication process (and these companies’ security standards in general), making it less likely that users would protect themselves.
For much of the last decade, Twitter told its users that it was collecting their phone and email addresses for account-security purposes. But they didn’t inform users that they would also use this information to send targeted ads to customers. When it was revealed, Twitter claimed it didn’t know this was happening, which if true is still… sloppy and bad in terms of both privacy and security standards.
In 2020, reports emerged that the company would likely be fined up to $250 million for the behavior by the FTC. This week the long-looming action finally dropped, with the FTC announcing that Twitter had struck a $150 million settlement with the DOJ and FTC:
from May 2013 to September 2019, Twitter told its users that it was collecting their telephone numbers and email addresses for account-security purposes, but failed to disclose that it also would use that information to help companies send targeted advertisements to consumers. The complaint further alleges that Twitter falsely claimed to comply with the European Union-U.S. and Swiss-U.S. Privacy Shield Frameworks, which prohibit companies from processing user information in ways that are not compatible with the purposes authorized by the users.
It was underplayed in the scope of other concerns, but big portion of the $5 billion fine levied against Facebook by the FTC also involved this same exploitation of information provided specifically for 2FA.
There are obviously numerous other companies that have chosen to undermine user security by monetizing 2FA information, but given the FTC is too underfunded and understaffed to handle them all, these fines have to be large enough to act as a warning shot over the bow in the absence of federal legislation.