Group items tagged

More than 6 million current and former customers of online brokerage TD Ameritrade Holding Corp. will be able to benefit from the settlement of a class-action lawsuit filed over the theft of client contact information. Formal notice of a settlement agreement will be sent to people who used TD Ameritrade's services before mid-September 2007. U.S. District Judge Vaughn Walker in San Francisco approved a revised version of the settlement agreement earlier this month despite some misgivings about it. Last summer, Walker rejected an earlier version of the deal. Anyone who held an Ameritrade account or provided an e-mail address to the company before Sept. 14, 2007, could benefit from the lawsuit. The database that was breached included information on 6.2 million people. The plaintiffs in the lawsuit said they received unwanted e-mail ads about certain stocks. The ads appeared to be designed to manipulate the value of thinly traded stocks. Ameritrade officials and one of the lead plaintiff's attorneys, Scott Kamber, have said the data theft has not been linked to cases of identity theft. As part of the proposed settlement, the Omaha-based company will pay nearly $1.9 million in legal fees and cover the cost of one year of anti-spam service for the victims. Ameritrade also promised to better protect customer data. Those terms have not changed from the original proposed settlement. But the new agreement will more clearly state that Ameritrade customers were at risk of identity theft, and it will preserve customers' ability to pursue identity theft claims against Ameritrade. Most of the changes to the agreement happened because the Texas Attorney General's Office and a former named plaintiff objected to the previous deal. In his order, the judge questioned whether the settlement does enough to benefit Ameritrade clients whose information was stolen. "The court is particularly concerned that TD Ameritrade has agreed to pay the class counsel $1.87 million and yet the

To assist small businesses and other entities, the Federal Trade Commission staff will redouble its efforts to educate them about compliance with the "Red Flags" Rule and ease compliance by providing additional resources and guidance to clarify whether businesses are covered by the Rule and what they must do to comply. To give creditors and financial institutions more time to review this guidance and develop and implement written Identity Theft Prevention Programs, the FTC will further delay enforcement of the Rule until November 1, 2009. The Red Flags Rule is an anti-fraud regulation, requiring "creditors" and "financial institutions" with covered accounts to implement programs to identify, detect, and respond to the warning signs, or "red flags," that could indicate identity theft. The financial regulatory agencies, including the FTC, developed the Rule, which was mandated by the Fair and Accurate Credit Transactions Act of 2003 (FACTA). FACTA's definition of "creditor" includes any entity that regularly extends or renews credit - or arranges for others to do so - and includes all entities that regularly permit deferred payments for goods or services. Accepting credit cards as a form of payment does not, by itself, make an entity a creditor. "Financial institutions" include entities that offer accounts that enable consumers to write checks or make payments to third parties through other means, such as other negotiable instruments or telephone transfers.

They may be after the phone, but what about the data? How much of your life is on your mobile device? Some misguided companies let employees use personal devices for work. I wonder what an auditor would say about due diligence and due care when data is leaked through such ignorance. Think, before you set a lax password, or none at all. Karl Thieves are increasingly going after iPhones and other smartphones but victims now can fight back with technology. One device allows a user to remotely activate a loud siren designed to rattle the thief. Another application, designed for iPhones, can reveal the phone's location. Police statistics show petty crime is down in New York but anecdotal evidence and recent headlines about street muggings targeting costly and coveted devices like Apple's iPhone and T-Mobile's Sidekick have disturbed smartphone users concerned about protecting access to e-mail, passwords and other data.

Thieves are increasingly going after iPhones and other smartphones but victims now can fight back with technology. One device allows a user to remotely activate a loud siren designed to rattle the thief. Another application, designed for iPhones, can reveal the phone's location. Police statistics show petty crime is down in New York but anecdotal evidence and recent headlines about street muggings targeting costly and coveted devices like Apple's iPhone and T-Mobile's Sidekick have disturbed smartphone users concerned about protecting access to e-mail, passwords and other data.