Prioritize Sound Data Security in Company Culture, FTC's Ohlhausen Tells Workshop

Citing the damage data breaches could inflict on businesses and consumers, FTC Commissioner Maureen Ohlhausen told participants Wednesday at the commission's Start with Security forum in Chicago that it's important to integrate security practices into a company. “So whether you’re building an app or managing your network or choosing your vendors, sound security practices are not an accident," she said. "They begin with a commitment to prioritize security within a business’s culture." Data breaches, she said, can harm a company's financial interests and reputation and result in a loss of consumer confidence. Consumers whose data is stolen can become victims of fraud and identity theft, she said. For instance, 16.6 million people -- U.S. residents 16 years and older -- were victims of identity theft in 2012, mainly credit card fraud, said Ohlhausen, citing the Bureau of Justice Statistics. She also cited the FTC's enforcement approach in making sure that companies have reasonable security practices and protections, and recent actions against AsusTeK Computer, Henry Schein Practice Solutions and Oracle (see 1602230032, 1605230030 and 1603290046). The Chicago workshop, with several panels of security experts providing insights and practical tips for the broader business community, is the fourth over the past year, including stops in Austin, San Francisco and Seattle.