“On Monday, a federal appeals court ruled that the Federal Trade Commission (FTC) has the power to take action (PDF) against companies that employ poor IT security practices. The FTC sued Wyndham in 2012 for failing to protect its customers from hackers, and Wyndham countered by saying that it was a victim of the hack itself and should not be penalized by the FTC for the breach. Although the US government has not mandated a level of security necessary for businesses to meet when they hold customer data, the FTC has been trying to push companies to invest in security.”
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