http://www.localnewsleader.com/brocktown/stories/news-00107611.html Staff and agencies 03 December, 2005 WASHINGTON - Shoe retailer DSW Inc. (NYSE:DSW - news) agreed to beef up its computer security to settle U.S. charges that it did not adequately protect customers' credit cards and checking accounts, the Federal Trade Commission said on Thursday. DSW said this spring that identity thieves had gained access to debit card, credit card and checking account information of more than 1.4 million customers, one of a string of such security breaches announced by U.S. companies this year. Identity thieves have generated fraudulent activity on some of those accounts, resulting in out-of-pocket charges for some customers, the FTC said. The FTC said the company engaged in an unfair business practice because it created unnecessary risks by storing customer information in an unencrypted manner without adequate protection. As part of the settlement, DSW set up a comprehensive data-security program and will undergo audits every two years for the next 20 years. DSW operates approximately 190 stores in 32 states. It had been a subsidiary of Retail Ventures Inc. (NYSE:RVI - news) until June, when it was spun off in an initial public offering. DSW issued a statement on Thursday saying it did not agree with all the allegations made by the FTC. But it said the settlement "validates the importance we place on security and brings closure to this matter." The company has said information was stolen from 108 stores. The transaction information stolen involved 1.4 million credit cards and 96,000 checks. Other companies to report such problems include Bank of America Corp. (NYSE:BAC - news) and ChoicePoint Inc. (NYSE:CPS - news), where the thefts involved thousands of individuals' data. _________________________________________ Earn your Master's degree in Information Security ONLINE www.msia.norwich.edu/csi Study IA management practices and the latest infosec issues. Norwich University is an NSA Center of Excellence.
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