Owner of CafePress Penalized $500,000 for Hiding a Data Breach

 

CafePress’s past owner Residual Pumpkin firm has been fined $500,000 by U.S. Federal Trade Commission (FTC) in their final order over a 2019 data breach that impacted 23 million customers.
CafePress is a US site that sells print-on-demand items like apparel, housewares, and kitchenware. Sellers can register on the website and upload their designs, and CafePress takes a percentage of every sale. 
Social Security numbers and password recovery responses were kept in plain text and for a longer period by the Residual Pumpkin firm. Additionally, the organization did not implement existing safeguards and react to security vulnerabilities. After several attacks on its servers, it attempted to hide the significant data breach carried on by its inadequate security protocols. 
A unanimous 5-0 vote accepted the FTC’s order. The FTC has mandated that the corporations immediately implement multi-factor authentication of stored data and set an encryption key for all social security numbers, in addition to imposing fines on the businesses. 

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