Security Newswire

Judge Rules FTC can Sue Wyndham over Cyber Security Lapses

A federal judge ruled that the U.S. Federal Trade Commission can sue hotel group Wyndham Worldwide over alleged poor data security.

U.S. District Judge Esther Salas in New Jersey denied Wyndham’s motion to dismiss the FTC’s lawsuit, which alleges the company’s “failure to maintain reasonable and appropriate data security" led to hacking and over $10.6 million in fraud loss, said Fox News.

“We continue to believe the FTC lacks the authority to pursue this type of case against American businesses, and has failed to publish any regulations that would give such businesses fair notice of any proposed standards for data security," Wyndham said in a statement, adding it plans to "defend our position vigorously.”

The FTC is suing Wyndham in an effort to obtain permanent injunctive relief and other equitable relief from the company related to hacking on three separate occasions in less than two years,  said Fox News.

The government’s complaint argues Wyndham’s “security failures” fueled fraudulent charges on consumers’ accounts, more than $10.6 million in fraud loss and the export of hundreds of thousands of consumers’ payment card account information to a domain registered in Russia, said Fox News.

The FTC said Wyndham failed to provide reasonable security for personal information collected and maintained by its hotels since at least April 2008. The company engaged in a number of practices that, taken together, “unreasonably and unnecessarily exposed consumers’ personal data to unauthorized access and theft,” the suit alleges.

"Specifically, the FTC said Wyndham failed to use readily available security measures like firewalls, allowed software to be configured inappropriately, failed to ensure hotels implemented adequate information security policies, failed to remedy known security vulnerabilities and made a number of other security lapses," said Fox News.

Did you enjoy this article? Click here to subscribe to Security Magazine. 

You must login or register in order to post a comment.



Image Galleries

ASIS 2013 Product Preview

ASIS International 59th Annual Seminar and Exhibits, September 24-27 in Chicago, Illinois, will include an exhibit hall packed with innovative security solutions. Here are some of the products that will be shown at ASIS this year.


Virtualization and Data Center Security: What You Need to Know for 2014

Data centers are increasingly becoming the center of the enterprise, and data center and cyber security is following the same path for security departments. According to Justin Flynn, a consultant at the Burwood Group, the virtualization of data centers allows enterprises to scale more easily and faster, with a smaller footprint.

However, hosting enterprise data in the cloud can make intrusion detection more difficult – how can enterprise security leaders team up with other departments to keep aware of cyber risks and traffic, and physical and data compliance during the virtual transition? How can CISOs and CSOs discuss cyber threats with the C-Suite to get the resources they need? And how can the proper infrastructure test and verify possible malicious attacks? 

More Podcasts

Security Magazine

Security May 2015 Issue cover

2015 May

In the May 2015 issue of Security, learn how to be the bridge between busieness and security with "customer facing," how to effectively work with your CFO, and covert security.

Table Of Contents Subscribe

Body Cameras on Security Officers

Body cameras are being used increasingly by police in cities across the U.S. Will you arm your security officers with a body camera?
View Results Poll Archive


Effective Security Management, 5th Edition.jpg
Effective Security Management, 5th Edition

 Effective Security Management, 5e, teaches practicing security professionals how to build their careers by mastering the fundamentals of good management. Charles Sennewald brings a time-tested blend of common sense, wisdom, and humor to this bestselling introduction to workplace dynamics. 

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Facebook 40px 2-12-13 Twitter logo 40px 2-12-13  YouTube  LinkedIn logo 40px 2-12-13Google+

Vertical Sector Focus: Critical Infrastructures

criticalhomepagethumbFrom terrorism to vandalism, it’s preparedness, response, training and partnerships. Learn about some of the critical security issues facing this sector.

Visit the Critical Infrastructure page to read more.