Soon after the hack was reported, I stated that "it would not surprise me if the FTC became involved in the matter". It appears that the FTC has decided to investigate the company because according to Reuters it has opened an investigation into Ashley Madison's creation of fake female profiles or fembots to increase user engagement with its male customers. Hiring companies that specialize in creating misleading daily active users (DAU's) or other metrics is such a common phenomena that on the season finale of HBO's Silicon Valley this issue became what appears to be an integral part of the series moving forward.
There is a tremendous amount of fraud online because it is very difficult for perpetrators to be exposed and held accountable for their actions. The digital space is teaming with not just unethical companies but also "self described experts" that intentionally mislead others about their background and service offerings to build their reputation.
While its too early to speculate on the focus of the FTC investigation, this should be a wake up call regarding trusting companies or "self described online experts" with your organizations' sensitive data.
Copyright 2016 by Bradley S. Shear, Esq. All rights reserved.
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