Wyndham® Worldwide is known for its luxurious, high quality bedding linens – which are one component of offering hotel guests a relaxing, comfortable experience. Unfortunately, the largest and most diverse hotel group is also making a name for itself in an area that makes guests highly uncomfortable – security breaches.
From 2008-2010, Wyndham® Worldwide experienced three hacks, unauthorized intrusions – that compromised the credit card numbers of 619,000 customers and led to more than $10,600,000 in fraudulent charges.
So what does this mean to you and why should you care?
Consumers have an expectation of reasonable data security, and the FTC is working to ensure that companies live up to the promises they make about privacy and data security.
In 2015, a U.S. appeals court ruled that the Federal Trade Commission has the authority to sue corporations for failing to properly secure customer information from data breaches. The FTC is able to take enforcement action against a company that has failed to protect consumer data from theft.
As a financial institution or lender that may keep sensitive personal information about customers or employees in files and on your networks, it’s essential that you have a sound security plan in place. Don’t put yourself in a position, like the Wyndham, where you are sued by the FTC.
At Lenders Risk, we provide a variety of 1st and 3rd party cybersecurity coverages for everything from breach event support expenses to network interruption and recovery.
Security and privacy liability coverage protects against the insured’s failure to protect private or confidential information and associated legal liability.
Want to learn more about how Lenders Risk can help protect you?