The Federal Trade Commission (FTC) settled with Ceridian Corporation and Lookout Services, Inc. for charges that both Ceridian (HR and payroll services company) and Lookout Services, Inc. (Form I-9 Software Solution Company which sells a product called I-9 Solution) claimed they were taking reasonable measures to secure consumer data, including Social Security numbers, but failed to do so. Consequently, both companies experienced data security breaches and exposed consumers personally identifiable data to hackers.
The settlement orders bar misrepresentations, including claims about the privacy, confidentiality or integrity of any personal information collected by the two companies. Additionally, the orders require the companies to implement comprehensive information security programs.
Data security and the risk of identity theft is a major concern of the FTC and all employers who collect, disseminate and/or use personally identifiable data, such as Social Security numbers and credit card information, should have strong privacy protections and plans in place.