Tax prep firm reaches settlement with FTC over cybersecurity lapses
TaxSlayer, a tax preparation company hacked by a ring of identity thieves in 2015, has agreed to settle a Federal Trade Commission complaint about its cybersecurity and data privacy practices — consenting to adopt a new security program and pay for third-party audits of its services. “Tax preparation services are responsible for very sensitive information, so it’s critical they implement appropriate safeguards,” said Tom Pahl, acting director of the FTC’s Bureau of Consumer Protection in a statement. “TaxSlayer didn’t have an adequate risk assessment plan.” The FTC announced the settlement in a statement Tuesday, saying the company was in violation of the Gramm-Leach-Bliley Act’s Safeguards Rule, which requires financial institutions to implement security safeguards to protect customers’ personal information; and its Privacy Rule, which requires financial institutions to tell customers about their privacy practices — the widely ignored “privacy notices” that they distribute. There is no direct financial penalty, but the company has to bear the […]
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