Twitter settles with FTC over hacking breach

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Friday, June 25, 2010


Twitter settles with FTC over hacking breach

Twitter has settled charges brought by the Federal Trade Commission that it deceived consumers by allowing hackers to obtain administrative control over the popular social-networking service because of loose security.

The FTC said Thursday that Twitter allowed hackers in 2009 to view private "tweets" -- micro-blogs of up to 140 characters -- and to send phony messages purportedly from the accounts of then-President-elect Obama and Fox News, among others.

Under the settlement, Twitter will set up a security program to be assessed by a third party and will be prohibited from "misleading consumers about the extent to which it . . . protects . . . nonpublic consumer information," the FTC said. No damages were sought.

In a statement, Twitter general counsel Alexander Macgillivray said that relatively few users were affected by the breach and that the incidents occurred when the company had 50 employees and was grappling with explosive growth. The company said that it has since worked on security measures and that no other complaints have been brought regarding privacy or security lapses.

-- Cecilia Kang


Durable goods orders picked up in May

Businesses spent more on big-ticket goods in May and the pace of layoffs slowed in the past week, the latest evidence that the economy is gradually improving.

Overall, factory orders for durable goods fell 1.1 percent last month, the Commerce Department said Thursday. But that was largely the result of a drop in demand for commercial aircraft. Excluding the volatile transportation sector, orders rose 0.9 percent after falling in April. Contributing to the strength was a 2.1 percent increase in business spending.

Meanwhile, the number of people filing first-time claims for jobless benefits fell last week by 19,000, the largest drop in two months. New claims declined to a seasonally adjusted 457,000, the Labor Department said. That's about the same level as at the beginning of the year. The four-week average dipped to 462,750, the first drop in six weeks.

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