FTC files lawsuit against Wyndham in data breach

WASHINGTON, June 26 Tue Jun 26, 2012 11:27am EDT

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WASHINGTON, June 26 (Reuters) - U.S. regulators filed a complaint against Wyndham Worldwide Corp and three subsidiaries on Tuesday, alleging that a failure to safeguard consumers' personal information had led to millions of dollars lost to fraud.

The Federal Trade Commission said repeated failures to secure consumer data led to hundreds of thousands of consumers' payment card information being exported to an Internet domain address registered in Russia.

Wyndham runs hotel brands including the value-oriented Days Inn and Super 8.

Wyndham failed to take security measures such as requiring strong passwords, the agency said. It also stored sensitive payment card information in clear readable text, the agency said.

The case was filed in the U.S. District Court for the District of Arizona.

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