Outgoing Secret Service Director To Join Snapchat Parent As New Security Chief

Snap Inc SNAP is reportedly roping in the head of a top federal law enforcement agency as its new chief security officer.

What Happened: Outgoing U.S. Secret Service Director James Murray will assume his new role in Snapchat's parent company after his term with the federal agency ends on July 30, Variety reported on Thursday.

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The report, citing an emailed statement from a company spokesperson, said Murray would report directly to Snap CEO and co-founder Evan Spiegel from Aug. 1.

The news came immediately after the Secret Service announced Murray's departure in an official statement. Snap did not respond to Benzinga's request for comment on the report, as of press time.

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Why It Matters: Murray has served the Secret Service for 27 years, and according to the agency, has overseen the recovery of about $4.2 billion in fraud loss and prevented an estimated $8.1 billion in additional losses from criminal enterprises. 

For Snap, Murray's hiring comes as the social media firm emerges from the effects of Apple Inc's AAPL 2021 privacy update that lets users prevent apps from tracking their online activity for targeted advertising.

Snap, whose business model has always relied on advertising, rolled out a premium paid subscription service last month in some countries. 

The most preferred social media platform by Gen Z, Snapchat has not faced serious privacy breaches since 2013-14, when a security flaw led to the hacking of 4.6 million users’ names and phone numbers.

According to Statista data, about 44.5 million U.S. Gen Z users are estimated to be using Snapchat in 2022.

Price Action: Snap shares, which are down nearly 68% so far this year, ended Thursday almost 6% higher at $15.10 but fell 0.4% in extended trading, according to data from Benzinga Pro. 

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Photo by Sergei Elagin on Shutterstock