Feeds

Credit report resellers settle charges over data breaches

1,800 reports exposed

Security for virtualized datacentres

Three resellers of credit information have settled federal charges they didn't do enough to prevent security breaches that exposed sensitive consumer information to hackers.

The companies – Washington state-based ACRAnet Inc. and SettlementOne Credit Corporation and Statewide Credit Services of California – have agreed to obtain independent security audits every other year for the next two decades and develop comprehensive security programs designed to protect the confidentiality of the consumer data they sell. The companies buy credit reports from the three nationwide consumer reporting agencies and combine them into special reports used by mortgage brokers.

The companies collectively exposed more than 1,800 credit reports via compromised client networks, the US Federal Trade Commission said in a statement. Even after learning of the compromises, the companies failed to take reasonable steps to prevent future breaches, the FTC added.

SettlementOne, for instance, allowed “end users with unverified or inadequate security to access consumer reports” through the company's portal, according to a complaint (PDF) submitted in the case.

“As a direct result of these failures, between February and June 2008, hackers were able to exploit vulnerabilities in the computer networks of multiple SettlementOne end user clients, putting consumer reports in those networks at risk,” FTC officials wrote. “In multiple breaches, hackers accessed at least 784 consumer reports without authorization.”

The FTC alleged the shortcomings violated several federal laws, including the Fair Credit Reporting Act, the FTC Act, and the Gramm-Leach-Bliley Safeguards Rule. ®

Internet Security Threat Report 2014

More from The Register

next story
UK smart meters arrive in 2020. Hackers have ALREADY found a flaw
Energy summit bods warned of free energy bonanza
DRUPAL-OPCALYPSE! Devs say best assume your CMS is owned
SQLi hole was hit hard, fast, and before most admins knew it needed patching
Knock Knock tool makes a joke of Mac AV
Yes, we know Macs 'don't get viruses', but when they do this code'll spot 'em
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Mozilla releases geolocating WiFi sniffer for Android
As if the civilians who never change access point passwords will ever opt out of this one
Why weasel words might not work for Whisper
CEO suspends editor but privacy questions remain
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.