Companies With Lax Data Security Risk Running Afoul of FTC

In a pair of recent enforcement actions, the Federal Trade Commission cracked down on companies with allegedly lax data security measures that resulted in the theft of personal information of millions of consumers.

In the first enforcement action, the FTC alleged that an online marketplace company and its CEO “were alerted to security problems two years prior to the breach yet failed to take steps to protect consumers’ data from hackers.”

Specifically, in 2018 hackers infiltrated the company’s servers until the login information for its cloud computing account was changed. Unfortunately, according to the FTC, the company did not address that breach with adequate security measures yet continued to represent to the public it had appropriate security protections. Two years later, an employee’s account was breached, and customers’ information was stolen.

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