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Tuesday, August 25, 2015

FTC Can Punish Companies With Sloppy Cybersecurity

The Congressional act that created the Federal Trade Commission gave that agency broad powers to punish companies engaged in "unfair and deceptive practices." Today, a U.S. appeals court affirmed that sloppy cybersecurity falls under that umbrella. The case involves data breaches at Wyndham Worldwide, which stored customer payment card information in clear, readable text, and used easily guessed passwords to access its important systems.

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