Twitter is facing a $250 million fine for misusing its users' data , after discovering that their personal security information was being used to create targeted ads.
As reported to the US Securities and Exchange Commission, the platform revealed that it fears a huge penalty from the Federal Trade Commission (FTC) for actions taken between 2011 and 2019.
Twitter admitted that it "accidentally" obtained phone numbers and emails, which were provided for 2FA , and used them to promote the display of targeted ads.
In the filing, the company said it received a complaint from the FCA on July 28, alleging breach of a 2011 consent order issued by the government, aimed at preventing Twitter from misleading users about the security of its data.
"The company estimates the range of potential damages in this matter to be $150 million to $250 million and has recorded an accrual of $150 million," Twitter said.
"The issue remains unresolved and there can be no assurance as to the timing or terms of any final outcome."
At the time the breach was revealed, Twitter said it was unable to determine how many users had been affected.
The problems occurred when phone numbers and email addresses were matched with third-party marketing lists provided by advertisers using the company's "custom audiences" feature, which helps marketers target specific users.
Last July, Facebook was fined $5 billion by the FTC for a series of violations, including one similar to one committed by Twitter. The news follows news of a major Twitter hack a few weeks ago that affected the accounts of famous users including Elon Musk, Jeff Bezos, and Barack Obama.
