U.S. regulators have filed a complaint against Wyndham Worldwide Corp and three subsidiaries, alleging that a failure by the hospitality company to safeguard consumers’ personal information led to more than $10 million lost to fraud. According to the Federal Trade Commission, repeated failures to secure consumer data led to hundreds of thousands of consumers’ payment card information being exported to an Internet domain address registered in Russia. Wyndham, which operates several hotel brands, including Days Inn and Super 8, is one of a large number of organizations that acknowledged in the past three years that they had been hacked by people seeking either financial gain or intellectual property.
Other victims have included entertainment giant Sony, the International Monetary Fund, Google, Lockheed Martin and Citigroup. In its complaint, the FTC alleged that fraudulent charges on Wyndham’s consumer accounts totaled more than $10.6 million following three data breaches in less than two years. The breaches occurred in April 2008, March 2009 and in late 2009, according to the FTC. It was further alleged by the FTC in the complaint:
Even after faulty security led to one breach… Wyndham still failed to remedy known security vulnerabilities; failed to employ reasonable measures to detect unauthorized access; and failed to follow proper incident response procedures.
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