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02.23.10



FTC Warns Organizations Of Data Breaches

By Mike Sachoff

The Federal Trade Commission (FTC) has announced it has contacted nearly 100 organizations about personal information, including sensitive data about customers or employees that has been shared from the organizations' computer networks and is available on peer-to-peer (P2P) file sharing sites which can lead to identity theft or fraud.

The notices went to both private and public organizations, including schools and local governments, and the entities contacted ranged in size from businesses with as few as eight employees to publicly held corporations employing tens of thousands.

"Unfortunately, companies and institutions of all sizes are vulnerable to serious P2P-related breaches, placing consumers' sensitive information at risk. For example, we found health-related information, financial records, and drivers' license and social security numbers–the kind of information that could lead to identity theft," said FTC Chairman Jon Leibowitz.

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"Companies should take a hard look at their systems to ensure that there are no unauthorized P2P file-sharing programs and that authorized programs are properly configured and secure. Just as important, companies that distribute P2P programs, for their part, should ensure that their software design does not contribute to inadvertent file sharing."

The FTC said organizations that receive the letters should review their security practices and consider notifying affected customers and employees. Many states and federal regulatory agencies have laws or guidelines about businesses' notification responsibilities in these circumstances.


About the Author:
Mike is a staff writer for WebProNews.
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