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FTC Warns Organizations of Data Leaks To P2P Site
Category : General 25 Feb 2010 06:33 AM | Industry News
The Federal Trade Commission says it has uncovered data breaches at companies, schools and local governments where people are swapping music, software and movie files over the Internet. The agency said it sent nearly 100 letters to organizations that have had information on customers and employees -- including financial data -- leaked through peer-to-peer Web sites. It warned that the breaches could lead to identity fraud or theft, and it recommended the companies review their policies.
In the notification letters, the FTC urged the entities to review their security practices and, if appropriate, the practices of contractors and vendors, to ensure that they are reasonable, appropriate, and in compliance with the law. The letters state, “It is your responsibility to protect such information from unauthorized access, including taking steps to control the use of P2P software on your own networks and those of your service providers.”
The FTC also recommended that the entities identify affected customers and employees and consider whether to notify them that their information is available on P2P networks. Many states and federal regulatory agencies have laws or guidelines about businesses’ notification responsibilities in these circumstances.