Briefing
FTC fines Ashley Madison $1.6 million for failure to protect and delete customer data, as well as creation of fake accounts
February 10, 2017
|
Briefing
|
- $1.6 million Fine – FTC orders Ashley Madison to pay $1.6 million fine for data breach in August 2015 which failed to protect data of 36 million customers
- Audited Data Security – Required company to implement data security program audited by third-party
- Undeleted Accounts – Failed to delete user account information which stayed in servers up to 12 months even after users paid $19 fee
- Fake Female Accounts – Admitted tens of thousands of female users on its site were made up
- Fine Less Than Settlement – Reached $17.5 million settlement, but fined only $1.6 million for inability to pay (though may be asked to pay full amount if found they can afford it)
|
|
Accelerator
|
|
|
Market Disruption
|
|
|
Sector
|
Information Technology
|
|
Organization
|
Ruby Life Inc.
|
|
Source
|
|
|
Original Publication Date
|
December 15, 2016
|
