Guidance Software settles with FTC

Guidance Software, which sells solutions for responding to network incidents, failed to safeguard its network to withstand common web-based attacks and detect unauthorised access to credit card information, the FTC said in a statement Thursday.

In addition, the Pasadena, Calif. company stored credit card data in "clear readable text" that allowed for easy access.

Last December, Guidance reported hackers broke into a company database and stole 3,800 credit card numbers, including those of information security and law enforcement officers.

Thursday's settlement requires Guidance to create a "comprehensive information-security program" and to undergo audits every two years for the next decade.

"We at Guidance Software take the security of our customers very seriously, and remain dedicated to maintaining a comprehensive program designed to protect the security, confidentiality and integrity of our customers' information," John Colbert, Guidance CEO, said in a statement Thursday.

"We will continue with an aggressive approach to information security and plan to surpass the requirements set forth in our agreement with the FTC."
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