#CyberFLASH: AshleyMadison security protocols violated privacy laws, watchdog says

ashley-madison-hack-20150720AshleyMadison used inadequate privacy and security technology while marketing itself as a discreet and secure way for consenting adults to have affairs, the Office of the Privacy Commissioner of Canada says.

In a report Tuesday, the privacy watchdog says the Toronto-based company violated numerous privacy laws in Canada and abroad in the era before a massive data breach exposed confidential information from their clients to hackers.

The hack stole correspondence, identifying details and even credit card information from millions of the site’s users. At the time of the breach in July 2015, AshleyMadison claimed to have 36 million users and took in more than $100 million in annual revenue.

The resulting scandal cost the company about a quarter of its annual revenues from irate customers who demanded refunds and cancelled their accounts.

Working with a similar agency in Australia, the privacy group says the company knew that its security protocols were lacking but didn’t do enough to guard against being hacked. The company even adorned its website with the logo of a “trusted security award” — a claim the company admits it fabricated.

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