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FTC files lawsuit against hotel chain following data breach

June 27, 2012

A massive data breach that affected thousands of hotel consumers has resulted in a lawsuit from the federal government.

A massive data breach that affected thousands of hotel consumers has resulted in a lawsuit from the federal government.

Wyndham Worldwide is the target of a lawsuit by the U.S. Federal Trade Commission following three credit card breaches in 2008 and 2009 that exposed the data of millions of guests, leading to massive losses. According to the FTC, the hotel firm failed to take the proper security measures to ensure that data was protected.

The hotel chain said it had acted properly when it was made aware of the issues. 
 
“At the time of these incidents, we made prompt efforts to notify the hotel customers whose information may have been compromised, and offered them credit monitoring services,” the company stated. “To date, we have not received any indication that any hotel customer experienced a financial loss as a result of these attacks.”

Other data breaches have highlighted the importance of security measures such as PCI compliance. The Courthouse News Service reports that customers at Five Guys restaurant had been victims of credit card theft at various franchise location.

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