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 (rss)

(Flattened / Threaded)

  • identicon
    Common Sense, Nov 16th, 2006 @ 11:33am


    reply to this | link to this | view in chronology ]

  • identicon
    Common Sense, Nov 16th, 2006 @ 11:40am

    Seriously, that is pretty discouraging when a data security company stores its clients data in plain text.

    Kinda like hiring a body guard who ends up shooting you.

    reply to this | link to this | view in chronology ]

  • identicon
    The Original Just Matt, Nov 16th, 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.

    reply to this | link to this | view in chronology ]

  • identicon
    eb, Nov 17th, 2006 @ 8:46am

    Take a Hit?

    I hope they are driven out of business by customers flocking to their competitor(s). Imagine the idiocy--would you want to continue running their software?

    reply to this | link to this | view in chronology ]

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