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Website Security Flaw Costs ZD (Wired)
Brian McWilliams reports, in Wired, that a security oversight which allowed unauthorized
web access to some customer's
identifying information and credit card numbers has resulted in
Ziff-Davis Media agreeing to pay $500 each to about 50
affected customers and an additional $100,000 to the state of New York.
An investigation led by New York with the assistance of Neohapsis
revealed that Ziff-Davis failed to follow industry-standard security
practices, such as encrypting and password-protecting the data, and
keeping track of who accessed it.
According to the settlement agreement (PDF), the attorneys general concluded that Ziff-Davis was guilty of violating their states' business laws prohibiting deceptive business practices and false advertising. (Log in to post comments)
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