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The Federal Trade Commission (FTC) has announced two mobile app makers have agreed to settle charges for allegedly deceiving customers by failing to securely transmit sensitive data. Fandango and Credit Karma, the FTC alleged, did not take reasonable steps to secure their apps, leaving credit card and credit report data as well as Social Security numbers at risk. The FTC has also charged the companies with disabling the Secure Sockets Layer (SSL) certificate validation process. FTC Chairwoman Edith Ramirez said the companies “have failed to properly implement SSL encryption,” and added, “Our cases against Fandango and Credit Karma should remind app developers of the need to make data security central to how they design their apps.”
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