U.S. sues Wyndham hotels over data breaches

Multiple security lapses reportedly led to more than $10.6 million in fraudulent charges

If you needed one more reason to protect your data against hackers, here’s the cautionary tale of Wyndham Worldwide Corp. The U.S. Federal Trade Commission (FTC) hit Wyndham with a lawsuit Tuesday on charges that the hotel chain failed to properly secure consumer data, allowing hackers to charge more than $10.6 million of fraudulent purchases to customer payment cards.

According to the FTC’s lawsuit, Wyndham misrepresented its security measures to customers. In reality, the feds say, the company stored customer passwords in plain text, failed to use firewalls or secure passwords and did not properly monitor its network for malware. These lax security measures reportedly resulted in three data breaches in less than two years, which gave hackers access to more than 600,000 customer accounts.

Alanna Byrne

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