Judge Decides Firm Not Negligent in Failure to Encrypt Data
Declan McCullagh writes on C|Net News:
A federal court has thrown out a lawsuit that accused a student-loan provider of negligence in failing to encrypt a customer database that was subsequently stolen.
Stacy Lawton Guin, a customer of Brazos Higher Education Service, sued the corporation on the grounds that encryption should be used as a routine security precaution.
But U.S. District Judge Richard Kyle in Minnesota dismissed the case last week, saying Brazos had a written security policy and other "proper safeguards" for customers' information and that it acted "with reasonable care" even without encrypting the database.
posted by Fergie @ 2/15/2006 08:54:00 AM
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