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Posted by / 03-Mar-2019 14:27

Business executives often ask how to manage confidential information.Experts agree on the key first step: Start with security.The business could have limited its risk by securely disposing of the financial information once it no longer had a legitimate need for it. Nor should businesses use personal information in contexts that create unnecessary risks.In the case, the FTC alleged that the company used real people’s personal information in employee training sessions, and then failed to remove the information from employees’ computers after the sessions were over.But learning about alleged lapses that led to law enforcement can help your company improve its practices.And most of these alleged practices involve basic, fundamental security missteps.

As the Federal Trade Commission outlined in Protecting Personal Information: A Guide for Business, you should know what personal information you have in your files and on your computers, and keep only what you need for your business.Savvy companies think through the implication of their data decisions.By making conscious choices about the kind of information you collect, how long you keep it, and who can access it, you can reduce the risk of a data compromise down the road.Not only did that violate bank rules, but by holding on to the information without a legitimate business need, the FTC said BJ’s Wholesale Club created an unreasonable risk.By exploiting other weaknesses in the company’s security practices, hackers stole the account data and used it to make counterfeit credit and debit cards.

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By collecting email passwords – not something the business needed – and then storing them in clear text, the FTC said the company created an unnecessary risk to people’s email accounts.