Twitter has agreed to settle Federal Trade Commission charges that it deceived consumers and put their privacy at risk by failing to safeguard their personal information.  The charges stem from alleged lapses in the company’s data security that permitted hackers to access tweets that users had designated as private and to issue phony tweets from the accounts of some users, including then-President-elect Barack Obama.  According to the FTC’s complaint (main document, exhibits), these attacks on Twitter’s system were possible due to a failure to implement reasonable safeguards, including:

• requiring employees to use hard-to-guess administrative passwords that are not used for other programs, websites or networks;
• prohibiting employees from storing administrative passwords in plain text within their personal email accounts;
• suspending or disabling administrative passwords after a reasonable number of unsuccessful login attempts;
• providing an administrative login webpage that is made known only to authorized persons and is separate from the login page for users;
• enforcing periodic changes of administrative passwords by, for example, setting them to expire every 90 days;
• restricting access to administrative controls to employees whose jobs required it; and
• imposing other reasonable restrictions on administrative access, such as by restricting access to specified IP addresses.

The proposed settlement agreement contains a consent order requiring Twitter to implement data security safeguards and submit to periodic independent security audits.  The FTC’s press release contains more details.