Utah Company Settles FTC Allegations it Failed to Safeguard Consumer Data

guest · Nov 12, 2019

Utah Company Settles FTC Allegations it Failed to Safeguard Consumer Data
As a result, hacker gained access to personal information of a million consumers, agency says
November 12, 2019
https://www.ftc.gov/news-events/pre...-ftc-allegations-it-failed-safeguard-consumer

A Utah-based technology company has agreed to implement a comprehensive data security program to settle Federal Trade Commission allegations that the company failed to put in place reasonable security safeguards, which allowed a hacker to access the personal information of a million consumers.

InfoTrax Systems, L.C., provides back-end operation services to multi-level marketers. This includes such services as compensation, inventory, orders, accounting, training, and data security, as well as operating its clients’ website portals.

“Service providers like InfoTrax don’t get a pass on protecting sensitive data they handle just because their clients are other businesses rather than individual consumers,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection.
As a result of the company’s security failures, a hacker infiltrated InfoTrax’s server, along with websites maintained by the company on behalf of clients, more than 20 times from May 2014 until March 2016. In March 2016, the intruder accessed about one million consumers’ sensitive personal information, according to the complaint.

InfoTrax did not detect these intrusions until March 2016, when it was alerted that its servers had reached maximum capacity.
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guest · Jan 6, 2020

FTC Finalizes Settlement with Utah Company and its former CEO over Allegations they Failed to Safeguard Consumer Data
January 6, 2020
https://www.ftc.gov/news-events/pre...s-settlement-utah-company-its-former-ceo-over

The Federal Trade Commission has granted final approval to a settlement with a Utah-based technology company related to allegations that the firm failed to put in place reasonable security safeguards, allowing a hacker to access the personal information of more than a million consumers.

The FTC alleged that InfoTrax Systems, L.C. and its former CEO Mark Rawlins failed to use reasonable, low-cost, and readily available security protections to safeguard the personal information they maintained on behalf of InfoTrax’s business clients.
After receiving no comments on the settlement, the Commission voted 5-0 to finalize the settlement order with InfoTrax and Rawlins.
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zapjb · Jan 6, 2020

Settlement was 0.001% of companies worth. My guess is probably too high.

guest · Jan 6, 2020

An article about this case:

InfoTrax Gets Slap on The Wrist After Being Breached 20+ Times
January 6, 2020
https://www.bleepingcomputer.com/ne...p-on-the-wrist-after-being-breached-20-times/

The Federal Trade Commission (FTC) finalized a settlement with a Utah-based tech company that got hacked and had the personal info of over a million clients stolen following a series of more than 20 undetected network intrusions.
Hacker fills a server with stolen data
InfoTrax was only able to detect the hacker because the archive of stolen data he collected grew so large that one of the servers' hard disks ran out of space.
To make things even worse, according to the FTC, the company "stored consumers’ personal information [...] in clear, readable text on InfoTrax’s network."

While the total number of consumers InfoTrax stored information on at the time of the hacks, the FTC says that it stored personal info of around 11.8 million individuals as of September 2016.
A second chance to get things right
As part of the finalized settlement with the FTC, the company is prohibited from collecting, selling, sharing, or storing any consumer personal information until it addresses the security issues described in the complaint.
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Utah Company Settles FTC Allegations it Failed to Safeguard Consumer Data

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