Friday, December 02, 2005

Retailer charged for bad security

Shoe retailer DSW Inc. agreed to beef up its computer security to settle U.S. charges that it did not adequately protect customers' credit cards and checking accounts, the Federal Trade Commission said on Thursday.

DSW said this spring that identity thieves had gained access to debit card, credit card and checking account information of more than 1.4 million customers, one of a string of such security breaches announced by U.S. companies this year.

The FTC said the company engaged in an unfair business practice because it created unnecessary risks by storing customer information in an unencrypted manner without adequate protection. As part of the settlement, DSW set up a comprehensive data-security program and will undergo audits every two years for the next 20 years.

CATEGORIES: 1hack, 1id theft, 1encryption, 1legal, 1costs
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