[ISN] Legal Showdown on Cybersecurity

http://online.wsj.com/article/SB10001424127887324059704578475461266801742.html By BRENT KENDALL The Wall Street Journal May 12, 2013 When hackers broke into computer systems at Wyndham Worldwide Corp. and several of its hotels, they allegedly stole payment-card numbers for hundreds of thousands of consumer accounts. They also sparked a high-stakes legal battle over whether a federal agency can use its consumer-protection powers to police cybersecurity practices at American companies. The Federal Trade Commission sued Wyndham and three subsidiaries in the wake of the data breaches, alleging that the hotelier followed lax data-security practices that unnecessarily exposed customers’ data to theft. It is asking a federal court to require Wyndham to do better—and to “redress injury” caused by the hacking, which took place from 2008 to early 2010. Wyndham has asked Judge Esther Salas at the U.S. District Court in Newark, N.J., to throw out the agency’s complaint, saying the lawsuit amounts to an unprecedented power grab in which the FTC is seeking to hold businesses responsible for hacking, rather than the hackers themselves. “This is the Internet equivalent of punishing the local furniture store because it was robbed and its files raided,” Wyndham said in a recent court filing. […] ______________________________________________ Visit the InfoSec News Security Bookstore Best Selling Security Books and More! http://www.shopinfosecnews.org




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