Marriott Settles Data Breach Case With $52M Payout, Focuses On Security Upgrades

Marriott International Inc MAR has agreed to pay a $52 million settlement following a series of data breaches that exposed sensitive information of millions of customers.

The settlement, which involves the Federal Trade Commission (FTC) and attorneys general from 49 states, addresses security lapses that occurred over several years, AP News reports.

What Happened: The breaches, spanning from 2014 to 2020, compromised data such as passport details, credit card numbers and personal information. The FTC's investigation highlighted inadequate security practices at Marriott and Starwood Hotels, a company acquired by Marriott in 2016. According to AP News, these vulnerabilities, including insufficient network monitoring, allowed hackers to infiltrate the systems.

As part of the settlement, Marriott will enhance its data protection measures, introducing a comprehensive security program to prevent future incidents. The hotel chain will also allow U.S. customers to request the deletion of personal information linked to their loyalty accounts. Although agreeing to the settlement, Marriott did not admit wrongdoing and emphasized improvements already made in data security.

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Why It Matters: This agreement underscores growing scrutiny of corporate cybersecurity measures as cyber threats increase. The Marriott breaches reflect broader challenges in data security, as a recent incident involved the Chinese-linked Salt Typhoon group, which infiltrated networks of major U.S. telecommunications firms like AT&T T and Verizon Communications VZ.

The bread by Salt Typhoon, a Chinese-backed hacking group, is a reminder of the persistent risks posed by cyber espionage, as the group reportedly accessed data for intelligence gathering. The incident, alongside the Marriott case, highlights the challenges companies face in protecting sensitive information from sophisticated attackers.

Enhanced security protocols, as seen in Marriott's new commitments, are becoming crucial for safeguarding consumer data and maintaining trust.

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This article was generated using artificial intelligence and was reviewed by Benzinga editors.

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