[{"description":"Stick with Security: Require secure passwords and authentication lfair August 11, 2017 | 10:47AM Stick with Security: Require secure passwords and authentication By Thomas B. Pahl, Acting Director, FTC Bureau of Consumer Protection To make it harder for hackers to bluff their way onto a computer network, careful companies follow the advice of Start with Security and require strong authentication practices . We’ve considered FTC settlements, closed investigations, and the questions we get from businesses about implementing good authentication “hygiene.” Here are some tips on using effective authentication procedures to help safeguard your network. Insist on long, complex, and unique passwords. A password’s very reason for being is to be easy for a user to remember, but hard for a fraudster to figure out. Obvious choices like ABCABC, 121212, or qwerty are the digital equivalent of a “hack me” sign. Furthermore, experts have determined that passphrases or longer passwords are generally harder to crack. The smarter strategy is for companies to think through their standards, implement minimum requirements, and educate users about how to create stronger passwords. Also, when you install software, applications, or hardware on your network, computers, or devices, change the default password immediately. And if you design products that require consumers to use a password, configure the initial set-up so they have to change the default password. Example: A staff member attempts to select payroll as the password for the database that includes employee payroll information. The company sets up its system to reject an obvious choice like that. Example: To access the corporate network, a business allows employees to type in their username and a shared password common to everyone who works there. Employees are also allowed to use that shared password to access other services on the system, some of which contain sensitive personal information. The more prudent policy would be to require strong, unique passwords for each employee and to insist that they use different passwords to access different applications. Example: At a staff meeting, a company’s IT manager offers tips for employees about good password hygiene. She explains that passphrases or longer passwords are better than short passwords based on standard dictionary words or well-known information (for example, a child’s name, a pet, a birthday, or a favorite sports team). By establishing a more secure corporate password standard and educating employees about implementing it, the IT manager is taking a step to help her company reduce the risk of unauthorized access. Store passwords securely. A company’s first line of defense against data thieves is a workforce trained to keep passwords secret. But even the strongest password is ineffective if an employee writes it on a sticky note on her desk or shares it with someone else. Train your staff not to disclose passwords in response to phone calls or emails, including ones that may appear to be coming from a colleague. Con artists have been known to impersonate corporate officials by spoofing phone numbers or email addresses. A compromised password poses a particular risk if it can be used to open the door to even more sensitive information – for example, a database of other user credentials maintained on the network in plain, readable text. Make it difficult for data thieves to turn a lucky password guess into a catastrophic breach of your company’s most sensitive data by implementing policies and procedures to store credentials securely. Example: A new employee gets a call from someone who claims to be the company’s system administrator. The caller asks him to verify his network password. Because the new staffer learned about impersonation scams at an in-house security orientation, he refuses to disclose his password and instead reports the incident to the appropriate person in the company. Example: A company keeps user credentials and other passwords in plain","pubDate":"Mon, 05 Oct 2026 08:07:08 +0200","id":3197409,"titre":"Stick with Security: Require secure passwords and authentication","url":"https://www.ftc.gov/business-guidance/blog/2017/08/stick-security-require-secure-passwords-authentication","source":"FTC USA Business Blog Posts"},{"source":"Federal Trade Commission - Protecting America's Consumers","url":"https://www.ftc.gov/news-events/news/press-releases/2025/12/ftc-will-require-illusory-systems-return-money-stolen-hackers-implement-information-security-program","titre":"FTC Will Require Illusory Systems to Return Money Stolen by Hackers and Implement an Information Security Program","id":2577895,"pubDate":"Wed, 17 Dec 2025 09:50:37 +0100","description":"The Federal Trade Commission is taking action against Illusory Systems Inc. for failing to implement adequate data security measures, leading to a major security breach in which hackers stole $186 million from consumers. Under a proposed order settling the FTC’s allegations, Utah-based Illusory, which does business as Nomad, will be required to implement an information security program to address numerous alleged security failures and to return recovered money to affected consumers. “The FTC Act requires companies to take reasonable security measures,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “It’s important that companies live up to their security promises to consumers.” In its complaint , the FTC alleged that Nomad prominently touted its security in its advertising, claiming that it offered “security-first” services. The FTC, however, alleged that the company failed to live up to these promises by failing to: use secure coding practices; implement processes for receiving and addressing vulnerability reports and responding to security incidents; and utilize widely known technologies that might have helped mitigate consumer losses. According to the complaint, in June 2022, Nomad introduced inadequately tested code that included a significant vulnerability. Just over a month later, hackers began exploiting the vulnerability. The FTC alleged that Nomad failed to respond to the attack in time because of its inadequate security and incident response measures, which led to the loss of $186 million. The company was able to recover some money, but consumers lost approximately $100 million. Nomad was warned about the dangers of inadequate testing as well as the need to ensure it had adequate staff and security in place. The company, however, failed to implement basic safety measures that would mitigate consumer losses, the FTC alleged. Under the proposed order , Nomad will be prohibited from making misrepresentations about its security practices. In addition, the company will also be required to: Implement a comprehensive information security program that is designed to protect consumers from theft or other unauthorized access and address the security issues outlined in the FTC’s complaint; Obtain biennial assessments of its information security program by an independent third party and cooperate with the third-party assessor; and Return to consumers money recovered following the security breach that was not already returned to customers. The Commission voted 2-0 to accept the proposed complaint and order for public comment. The FTC will publish a description of the consent agreement package in the Federal Register soon. The agreement will be subject to public comment for 30 days after publication in the Federal Register after which the Commission will decide whether to make the proposed consent order final. Instructions for filing comments will appear in the published notice. Once processed, comments will be posted on Regulations.gov. NOTE:  The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $51,744. The lead staff attorneys on this matter are M. Hasan Aijaz and Julia Horwitz with the FTC’s Bureau of Consumer"}]