Wednesday 16 December 2015

Cybersecurity Lessons for Businesses in the Aftermath of FTC’s Settlement of Data Breach Charges Against Wyndham

In a precedent-setting agreement, Wyndham Worldwide Corp. has agreed to settle charges brought by the U.S. Federal Trade Commission that the company failed to adequately protect its data systems and customer information from cyberattacks. The FTC announced the settlement on December 9, 2015, and the announcement ends a lawsuit that was the test case for the FTC’s power to regulate data security.

In 2012, after a two-year investigation into Wyndham’s data security practices, the FTC filed suit against the hospitality company alleging that Wyndham had engaged in “unfair … acts or practices” in violation of the Federal Trade Commission Act, 15 U.S.C. §45(a), by failing to take “reasonable and appropriate” measures to adequately secure hotel guests’ personal information. The FTC’s complaint alleged that Wyndham’s deficient security practices led to “the compromise of more than 619,000 consumer payment card account numbers, the exportation of many of those account numbers to a domain registered in Russia, fraudulent charges on many consumers’ accounts, and more than $10.6 million in fraud loss.” For the full article click here 



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