The Consumer Financial Protection Bureau has charged financial technology company Dwolla with misrepresenting how it protects its customers’ data and fined it $100,000. Dwolla said the practices in question date back to 2011 and 2012 and that they never sustained a data breach, and, according to The Wall Street Journal, this is one of the CFPB’s first regulatory actions against a financial technology company. “With data breaches becoming commonplace and more consumers using these online payment systems, the risk to consumers is growing,” said CFPB Director Richard Cordray in a statement. “It is crucial that companies put systems in place to protect this information and accurately inform consumers about their data security practices.” (Registration may be required to access this story.)
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