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New York AG Settles Charges with Tech Company Over WiFi Lock Vulnerabilities

Privacy/Cyber Risk & Data Security Enforcement State Attorney General

Privacy, Cyber Risk & Data Security

On May 22, New York Attorney General Eric T. Schneiderman announced that a Utah-based tech company agreed to settle allegations that, among other things, its wireless doors and padlocks failed to protect consumers’ personal information, leaving consumers vulnerable to hacking and theft. This action marks the first time the Attorney General’s office has taken legal action against a wireless security company for failing to protect private data. Results from an August 2016 study, conducted by independent security researchers, reveal that the tech company’s Bluetooth-enabled locks “transmitted passwords between the locks and the user’s smartphone . . . without encryption” and also contained “weak default passwords.” Both issues allowed perpetrators to intercept passwords and undo the locks. Under the terms of the settlement, the company agreed to reform its data security practices and implement a comprehensive security program.

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