FTC Slams Security Firm That Lost Customer Data

from the burn dept

Remember Guidance Software, the security firm that helps companies identify when a hacker has compromised their systems, but then proceeded to lose data on their own customers? It's finally settled with the FTC, for in the government's words it failed to, "...implement simple, inexpensive and readily available security measures to protect consumers' data. In contrast to claims about data security made on Guidance's Web site, the company created unnecessary risks to credit card information by permanently storing it in clear readable text." So basically, it was total negligence from a company that should have known much better. For most companies, one data breach probably wouldn't damage their reputation too much, but when it's so closely related to your company's mission, and you've received such a harsh rebuke from the FTC, it's hard to see their reputation not taking a hit.

Reader Comments

Subscribe: RSS

View by: Time | Thread

  1. identicon
    The Original Just Matt, 16 Nov 2006 @ 12:43pm

    It was funny

    I'm a (sort of) customer of theirs. We received Xmas cards from Guidance for the first time ever. Then, about a week later, we received the Bad Letter telling us that our data had been taken.

    Since they hadn't sent cards in the past, I'm thinking they sent the holiday cards after they knew about the break in, and that was kind of uncool. I should have received notification ASAP.

    Actually, they should have used BASIC security like, y'know, not putting credit card numbers and passwords on an Internet connected machine. Sheesh.

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here

Subscribe to the Techdirt Daily newsletter

Comment Options:

  • Use markdown. Use plain text.
  • Remember name/email/url (set a cookie)

Follow Techdirt
Techdirt Gear
Show Now: Takedown
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Report this ad  |  Hide Techdirt ads
Recent Stories
Report this ad  |  Hide Techdirt ads


Email This

This feature is only available to registered users. Register or sign in to use it.