I had to post about this one – our general counsel and compliance specialist Dave Stampley wrote an article recently at Information Week about the importance of ensuring application security as part of your regulatory compliance efforts. From the article:
Web-application security vulnerabilities pose a unique compliance risk for companies. Unlike compliance failures that take place in the background–for example, an unencrypted business-to-business transmission of sensitive consumer data–application weaknesses are open to discovery by any skilled Web surfer and even consumers themselves.
“The FTC appears to be taking a strict liability approach to E-commerce security flaws,” says Mary Ellen Callahan, an attorney at Hogan & Hartson in Washington, D.C., who has represented clients facing government privacy compliance investigations. “White-hat hackers and tipsters have prompted a number of enforcement actions by reporting Web-site flaws they discovered.”
Read the full article here