Former Twitter security chief Peiter Zatko is set to testify before the Senate Judiciary Committee on Tuesday, only three weeks after his explosive whistleblower complaint became public.
Business leaders should take heed of how quickly Congress hauled Zatko in, because this appears to be the start of a trend that highlights reputational risk.
Zatko alleges that senior executives at Twitter hid cybersecurity vulnerabilities, misreported the effectiveness of security measures to regulators and customers, and intentionally kept information from the board of directors. Twitter dismissed the allegations as “a false narrative” that lacks context. Litigation will likely take years, but Zatko blowing the whistle on cybersecurity malpractice has already maimed Twitter’s reputation and stock price.
This case parallels a whistleblower claim against defense contractor Aerojet Rocketdyne, which agreed last month to pay $9 million to resolve allegations that it violated the False Claims Act by misrepresenting its compliance with cybersecurity requirements.
This makes two publicly traded companies, two boards allegedly misled, and two whistleblowers with inside information and technical expertise identifying cybersecurity failures and misconduct at companies where these kinds of deficiencies have national security implications. The Aerojet Rocketdyne case was quietly and suddenly settled. It’s unlikely that Twitter will enjoy the same fate.
What Zatko claims about Twitter seems closer...
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