FTI Consulting News Bytes – 16th September 2022

This week’s news

Twitter whistle-blower testifies to the Senate Judiciary Committee

Twitter whistle-blower and ex-security lead Peiter Zatko testified to the Senate Judiciary Committee on Tuesday – in a high-stakes battle that has opened the social media’s cyber security practices to scrutiny and could impact Elon Musk’s ongoing legal battle.  On 13th September, Zatko claimed Twitter was “over a decade behind industry standards” and accused its executives of “misleading the public lawmakers, regulators and even its own board of directors” over its security practices, according to the Financial Times. He even claimed that the security failures were so serious they threatened national security referring to a warning from the FBI that the company had Chinese spies within its ranks. Zatko went on to highlight how staffers had “too much access to data” of users’ sensitive information and that of advertising clients. Elon Musk is weighed in on these accusations as he attempts to get out of his $44bn takeover bid to buy the company. Musk cited Twitter’s deception about the number of bots on its platform as the reason to withdraw the bid.

Google loses appeal over record EU anti-trust Android fine

The BBC reports that the European Commission (EC) has upheld its decision to issue Google with a massive multibillion-euro antitrust fine of £3.5bn after being found in breach of competition laws. The company was accused of imposing restrictions on Android phone makers’ ability to access the Google Play Store via its search and web browser apps. The record fine is being seen as further indication the EC plans to clamp down on big tech firms following antitrust probes in recent months. In response to the ruling the European Consumer Organisation Director General, Monique Goyens, stated it “confirms that Europe’s consumers must enjoy meaningful choice between search engines and browsers on their phones and tablets”. Google is expected to submit another appeal in the coming months.

Ethereum’s software upgrade “Merge” an evolution in blockchain technology

In a key moment for the crypto market, Ethereum the blockchain network completed its most ambitious software upgrade to date the “Merge.” This update will see Ethereum undergo a network transition from proof-of-work concept (energy hungry computers validate transactions) to proof-of stake (individuals and companies act as validators), according to Reuters. Experts predict the transition will reduce energy consumption by around 99.95%. For years, Ethereum has relied on fossil fuels to support its networks and had electricity requirements totaling that of a small country, according to the Independent. With a more energy-efficient set-up, Ethereum is expected to face fewer regulatory challenges and allow for mainstream use of crypto technology in finance.

Story 4 – Wall St jobs are hot again as tech and crypto sectors lay off staff

Wall Street firms are said to now be recovering from the previous lay-offs and hiring shortages that saw many workers opt for jobs in the technology sector. According to the tracking site Layoffs.fyi, up to 75,000 job cuts have been announced in 2022 in response to signs of an imminet recession and downward stock and cryptocurrency prices. The Financial Times article noted the downward spiral has as a result left banks, exchanges and market institutions as a more attractive choice for tech professionals. Executives have warned competition for talent will mean businesses must continue to invest. Chris Isaacson, Chicago Board Options Exchange COO stated, “the best talent always has opportunities. We will need to remain competitive…in the way we reward people and seek to retain them.”

EU proposes rules targeting smart devices with cybersecurity risks

Finally, the European Commission has unveiled proposals which could mean all forms of smart devices connected to the internet including laptops and fridges will soon be obligated to address any cybersecurity risks under a new Cyber Resilience Act. With a ransomware attack happening every 11 seconds around the world – this has demanded a new approach to the complex cybersecurity issue. Now, manufacturers will be responsible for the security of their products throughout their lifecycle and will have to ensure their products/software comply with strong cybersecurity safeguards. According to the draft, companies will face fines of up to 15 million euros or up to 2.5% of their global turnover if they fail to mitigate the problem. One EU executive wanted to show the value in mitigation – comparing the cost of cyber incidents which stand at 290 billion euros annually versus compliance costs of about 29 billion euros to demonstrate the massive savings companies could make.

Top Tweets of the Week

• Bloomberg Technology reports that Adobe has agreed to buy software design startup Figma in a deal valued at $20 billion to expand tools for creative professional development
• Reuters Tech News tweets that Tesla is being sued by drivers over claims they mislead the public by falsely advertising its Autopilot and Full Self-Driving feature
• Bloomberg Pursuits notes that analysts at HSBC say Porsche’s IPO valuation is too high, ahead of one of Europe’s biggest listings

Number of the Week

25,782 – The number of days Queen Elizabeth II reigned as Monarch, following her ascension in 1952

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