Volume IV

Issue : 5: March 9, 2006

• Yahoo! Restricts Bids on Competitors Trade marked Keywords
• Missouri Attorney General Targets Another Cell Phone Records Provider
• IBMs New Consumer Identity Protection Program
• Vonage Canada Complains About "VoIP Tax"
• FTC Settles with Cardsystems over Data Breach
• Toronto Hydro Plans Wireless Internet Access for Downtown
• RIM Concludes Patent Battle With $612.5M Payment to NTP
• Alberta Privacy Commissioner Issues Report on Outsourcing

Home > Volume IV > Issue 5: March 9, 2006 > FTC Settles with Cardsystems over Data Breach

FTC Settles with Cardsystems over Data Breach

Cardsystems Solutions Inc. has settled charges arising from a data breach that left 40 million customer accounts vulnerable to hackers. Last summer, tens of millions of MasterCard and Visa accounts were exposed to possible fraud after a hacker broke into Atlanta-based Cardsystems’ computer system. Cardsystems was charged with breaking the law by failing to ensure that adequate safeguards for sensitive customer information were in place. According to the chairman of the Federal Trade Commission, “CardSystems kept information it had no reason to keep and then stored it in a way that put consumers’ financial information at risk.” FTC officials have said that the data breach will lead to tighter security measures to protect credit and debit card users.

Cardsystems’ assets have since been bought by San Francisco-based Pay By Touch. The settlement requires that Pay By Touch implement a comprehensive security program and obtain independent audits every other year for 20 years.

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http://www.bizreport.com/news/9688/