Two debt brokers settle with FTC after posting debt portfolios online
A pair of debt brokers agreed to settle with the Federal Trade Commission (FTC) after posting personal information of 55,000 consumers online.
Last year, the commission filed separate complaints against brokers Brandon Lambert and Aron Tomko after the two posted non-encrypted debt portfolios to a public website, according to a release. The site catered to the debt collection industry but the information was accessible anyone.
The complaints alleged that the brokers put people at risk of fraudulent debt collection and identity theft. Lambert and Tomko reached settlements ordering them to notify those affected and to establish and maintain security programs to protect the consumers' sensitive information.
They also must abide by stricter privacy requirements and their companies must frequently undergo evaluation by a certified third party. The debt broker website was ordered to immediately remove the sensitive information.