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Trump Hotels Fined $50K for Not Telling Guests About Data Breach

Donald Trump’s luxury hotel company Trump Hotel Collection agreed on Friday to pay a $50,000 settlement and upgrade its security systems after investigators found that Trump’s hotels failed to notify customers that a hacker had stolen their credit card numbers and personal information from Trump Hotel computers.
In June 2015, Trump's hotels became aware of malware within its system that was stealing credit card information. However, the company did not inform consumers of the data breach until four months later in September 2015.
After the initial breach, a final report on the hack recommended that Trump adopt additional security precautions including “two-factor authentication” for remote access to the THC network. But Trump hotels never did. As a result, Trump Hotels and some of Trump's condo properties were hacked again less than a year later. And when the banks alerted the company to the second data breach, Trump Hotel Collection waited three more months before alerting potential victims of the second hack.
“It is vital in this digital age that companies take all precautions to ensure that consumer information is protected, and that if a data breach occurs, it is reported promptly to our office, in accordance with state law,” said New York Attorney General Eric Schneiderman in a statement about the settlement. New York law requires that companies inform their customers as soon as possible about the suspected theft of personal information.
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