: 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 recei[...]
: Data security settlement with service provider includes updated order provisions lfair June 12, 2019 | 11:39AM Data security settlement with service provider includes updated order provisions By Lesley Fair The domino principle. The ripple effect. The butterfly phenomenon. Apply the analogy of your choice to describe what happens when one software developer ’s allegedly lax security practices result in the breach of confidential customer information maintained by multiple businesses that use the software. If your business is a service provider – or if your company uses third-party service providers to help manage your data – a proposed FTC settlement merit s your attention. One notable aspect of the case: a proposed order that includes new data security requirements reflecting the current Commission priority of updating its data security orders. Many third-party service providers sell industry-specific data management software to consumer-facing businesses. One example is DealerBuilt, software for auto deale[...]
: Ticket broker Elite Events and its operators will pay $300,000 in civil penalties to resolve Federal Trade Commission allegations that the firm purchased millions of dollars’ worth of tickets to high-demand events by illegally circumventing measures designed to limit the number of tickets that can be purchased to a single event. In a complaint , the FTC alleged that Elite Events and Tickets LLC, which also does business as Smart Scalpers or smartscalpers.com, and its owners, Kevin W. McKerley and Aaron L. Fera, violated the Better Online Ticket Sales Act. That law makes it illegal for any person to “circumvent a security measure, access control system, or other technological control or measure on an Internet website or online service that is used by the ticket issuer to enforce posted event ticket limits or to maintain the integrity of posted online ticket purchasing order rules.” The complaint alleged Elite Events used a variety of unlawful tactics to bypass ticket purchasing limits for more than 2,400 diff[...]