DataBreaches.Net

Menu
  • About
  • Breach Notification Laws
  • Privacy Policy
  • Transparency Report
Menu

FTC settles charges against Cord Blood Registry over data breach

Posted on January 28, 2013 by Dissent

Back in December 2010, a computer belonging to Cord Blood Registry (CBR) and a backup tape with customers’ information was stolen from an employee’s unattended vehicle. The breach was disclosed in February 2011, and I covered it on this blog, here.

Today, the FTC announced that it had settled charges against CBR over the breach.  Again, a firm’s claims in its privacy policy and TOS were not consistent with their actions:

In its privacy policy, Cbr claimed that “[w]henever CBR handles personal information, regardless of where this occurs, CBR takes steps to ensure that your information is treated securely and in accordance with the relevant Terms of Service and this Privacy Policy. . . . ”

However, according to the FTC, Cbr failed to use reasonable and appropriate procedures for handling customers’ personal information, making its privacy policy claim deceptive under the FTC Act.  According to the complaint, Cbr did not have reasonable policies and procedures to protect the security of information it collected and maintained.  In addition, Cbr allegedly created unnecessary risks to personal information by, among other things, transporting backup tapes, a thumb drive, and other portable data storage devices containing personal information in a way that made the information vulnerable to theft.  According to the FTC, Cbr also failed to take sufficient measures to prevent, detect, and investigate unauthorized access to computer networks.

The FTC charged that Cbr’s failures to provide reasonable and appropriate security for consumers’ personal information contributed to a December 2010 security breach during which unencrypted backup tapes containing consumers’ personal information, a Cbr laptop, a Cbr external hard drive, and a Cbr USB drive were stolen from a Cbr’s employee’s personal vehicle in San Francisco, California.  According to the complaint, the unencrypted backup tapes included, in some cases, the names, gender, Social Security numbers, dates and times of birth, drivers’ license numbers, credit and debit card numbers, card expiration dates, checking account numbers, addresses, email addresses, telephone number and adoption type (e.g., open, closed, or surrogate) of approximately 298,000 Cbr customers.

The consent decree places CBR under monitoring and requires them to strengthen their information security program. Because this is CBR’s first action by the FTC, there are no monetary penalties involved.

Related posts:

  • Judge tentatively approves Cord Blood Registry class action lawsuit settlement
  • Cord Blood Registry notifies 300,000 of stolen backup tapes (updated)
  • FTC Takes Action Against Drizly and its CEO James Cory Rellas for Security Failures that Exposed Data of 2.5 Million Consumers
  • FTC Announces Hearings On Competition and Consumer Protection in the 21st Century
Category: Breach IncidentsBusiness SectorOf NoteTheft

Post navigation

← 1337day mirror sites hacked by Injector & Sec4ever
LA DPPS employee pleads guilty to stealing clients’ info for tax refund fraud scheme →

1 thought on “FTC settles charges against Cord Blood Registry over data breach”

  1. Tony Phelps says:
    January 28, 2013 at 3:24 pm

    You mean the web developer who copied the text when CBF management crossed their eyes over a privacy policy didn’t take the fall? Imagine that!

    Businesses are going to have actually take those binding agreements seriously. I don’t know how many times in my webdev days I was told just to ‘copy something’ when I asked about a privacy policy or terms and conditions. Its a common joke that no one reads these things ~ but the site owners really should be an exception to this rule.

Comments are closed.

Now more than ever

"Stand with Ukraine:" above raised hands. The illustration is in blue and yellow, the colors of Ukraine's flag.

Search

Browse by Categories

Recent Posts

  • Breaches have consequences (sometimes)
  • Kansas City Man Pleads Guilty for Hacking a Non-Profit
  • British national “IntelBroker” charged with causing $25 million in damages; U.S. seeks his extradition from France
  • France issues press statement about arrest of ShinyHunters members
  • Patients Allege Home Delivery Pharmacy Failed to Timely Notify Them of Data Breach
  • Hackers breach Norwegian dam, open valve at full capacity
  • Patient death at London hospital linked to cyber attack on NHS
  • ShinyHunters and team members arrested in France (2)
  • Texas Enacts Liability Shield From Punitive Damages for Certain Small Businesses That Adopt Cybersecurity Programs
  • Dublin ETB fined €125,000 for data protection breaches

No, You Can’t Buy a Post or an Interview

This site does not accept sponsored posts or link-back arrangements. Inquiries about either are ignored.

And despite what some trolls may try to claim: DataBreaches has never accepted even one dime to interview or report on anyone. Nor will DataBreaches ever pay anyone for data or to interview them.

Want to Get Our RSS Feed?

Grab it here:

https://databreaches.net/feed/

RSS Recent Posts on PogoWasRight.org

  • How Internet of Things devices affect your privacy – even when they’re not yours
  • Sky Views Personal Data as a Potential Weapon in IPTV Piracy War
  • Florida Used a Nationwide Surveillance Camera Network 250 Times To Aid in Immigration Arrests
  • Federal Court Strikes Down HIPAA Reproductive Health Care Privacy Rule
  • The Markup caught 4 more states sharing personal health data with Big Tech
  • Privacy in the Big Sky State: Montana’s Consumer Privacy Law Gets Amended
  • UK Passes Data Use and Access Regulation Bill

Have a News Tip?

Email: Tips[at]DataBreaches.net

Signal: +1 516-776-7756

Contact Me

Email: info[at]databreaches.net

Mastodon: Infosec.Exchange/@PogoWasRight

Signal: +1 516-776-7756

DMCA Concern: dmca[at]databreaches.net
© 2009 – 2025 DataBreaches.net and DataBreaches LLC. All rights reserved.