The Federal Trade Commission charged Lookout Services Inc. and Ceridian Corporation with failing to keep their clients’ data secure, after breaches at the firms compromised sensitive information, including Social Security numbers, of almost 65,000 people, the agency announced yesterday in a statement. Both companies have settled.
The FTC’s complaint against Lookout Services, a software company that helps employers comply with federal immigration laws, pointed to language about the company’s data protection policy on its Website which was alleged to be inconsistent with the company’s actual behavior. In other words, compliance oversight wasn’t up to par with compliance in practice.
