Thursday, August 27, 2015

Court: FTC Has Authority to Regulate Data Security

A U.S. appeals court ruled the Federal Trade Commission (FTC) has authority to regulate corporate cyber security, and may pursue a lawsuit against a hotel operator for failing to properly safeguard consumers' information.

The 3rd US Circuit Court of Appeals in Philadelphia, in a 3-0 decision, upheld an April 2014 lower court ruling allowing the case to hold the hotel operator accountable for breaches customers' personal identifying information (PII) that led to over $10.6 million in fraudulent charges.

"It is not only appropriate, but critical, that the FTC has the ability to take action on behalf of consumers when companies fail to take reasonable steps to secure sensitive consumer information."
- FTC Chairwoman Edith Ramirez
If the FTC can take action against companies in any industry that don't adequately protect the customer PII in their possession, then companies need to be proactive in protecting such data. For proactive detection of PII theft by insiders, or hackers posing as insiders, organizations can utilize low-cost on-demand SaaS analytics services.
Learn how to proactively detect identity theft and unauthorized breaches of data privacy, even by authorized users - with no hardware and no on-site software.
Sources:
(a) FTC has power to police cyber security: appeals court - www.Reuters.com, 08/24/2015

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