The Federal Trade Commission has granted final approval to a settlement with a Utah-based technology company related to allegations that the firm failed to put in place reasonable security safeguards, allowing a hacker to access the personal information of more than a million consumers.
The FTC alleged that InfoTrax Systems, L.C. and its former CEO Mark Rawlins failed to use reasonable, low-cost, and readily available security protections to safeguard the personal information they maintained on behalf of InfoTrax’s business clients. As a result of the company’s alleged security failures, a hacker infiltrated InfoTrax’s server, along with websites maintained by the company on behalf of clients, more than 20 times from May 2014 until March 2016. The hacker accessed consumers’ sensitive personal information, including Social Security numbers, according to the FTC’s complaint.
As part of the settlement with the FTC, InfoTrax and Rawlins are prohibited from collecting, selling, sharing, or storing personal information unless they implement an information security program that would address the security failures identified in the complaint. In addition, the settlement requires the company and Rawlins to obtain third-party assessments of their companies’ information security programs every two years.
After receiving no comments on the settlement, the Commission voted 5-0 to finalize the settlement order with InfoTrax and Rawlins.
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs, and subscribe to press releases for the latest FTC news and resources.
Juliana Gruenwald Henderson
Office of Public Affairs