FTC Settles with CardSystems Over Data Breach

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00016070-ftc-settles-with-cardsystems-over-data-br/

A credit card processing company agreed to settle allegations that it failed to protect consumer data, resulting in millions of dollars in fraudulent purchases, the U.S. Federal Trade Commission said on Thursday.

The security breach by CardSystems Solutions Inc., now owned by Pay by Touch Solutions, is the “largest known compromise of financial data to date,” the FTC said in a statement.

The proposed settlement requires the privately-owned company to adopt stricter security measures and have an independent audit every other year for the next 20 years.

For this complete story, please visit FTC Settles with CardSystems Over Data Breach.