Posts Tagged: "Department of Homeland Security"

Cybercrime seemed to be in the news daily in 2016. From the hack of the Democratic National Committee email accounts to the massive data breaches suffered by large technology companies, a major restaurant chain, and numerous government agencies, the news seemed inundated by a steady stream of high profile cybercrime. What is in store for 2017? Given the proliferation of electronic devices and data in our society, we can reasonably expect cases of cybercrime to continue to increase in number and complexity in the new year.

In creating a privacy and security plan, IOT companies should be mindful of regulatory enforcement for failure to fully comply with their own advertised practices. For example, companies should honor representations made to consumers regarding privacy and security practices, or risk regulatory scrutiny. If not, the FTC may bring an enforcement action, which it did against IOT company, TRENDnet, Inc. According to the FTC, TRENDnet failed to implement reasonable security practices, monitor security vulnerability reports from third parties, test and review potential security vulnerabilities, and implement reasonable guidance for its employees, and thus was in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). The case settled, and the terms of the settlement prohibited TRENDnet from misrepresenting its privacy and security practices and required it to establish a comprehensive security risk program.