The Federal Trade Commission (FTC) has taken a significant step by issuing refunds worth $5.6 million to customers of Ring, the Amazon-owned smart home security brand.
This decision comes after it was discovered that Ring users’ private video feeds had been improperly accessed by Amazon employees and contractors, and others faced account and device breaches due to inadequate security measures.
Details of the FTC Settlement with Ring
This reimbursement is a part of a broader settlement that resolves issues raised in a May 2023 complaint, which highlighted that Ring did not enforce sufficient security protocols to guard against unauthorized access to its devices.
Known for their range of products like video doorbells, security cameras, and smart sensors, Ring devices enable users to monitor their homes remotely via internet-connected mobile applications.
The FTC’s original allegations pointed out that Ring had granted its employees unrestricted access to customer devices, apparently in an effort to boost productivity and expedite development.
Moreover, Ring provided substantial access to customer support agents, including many third-party contractors in Ukraine and other locations, without adequate oversight to prevent misuse of this access.
Security Lapses and Customer Impact
One significant oversight by Ring was the delayed implementation of multi-factor authentication (MFA) – the feature was not adopted until 2019. This delay facilitated unauthorized access to user accounts and private video feeds through credential stuffing and brute force attacks.
To address the harm caused, the FTC is now compensating over 117,000 affected Ring consumers. These payments are being made via PayPal, and recipients are required to claim these funds within the next 30 days.
“The FTC identified eligible Ring customers based on data provided by the company,” explained the agency. They further clarified that “Ring users were eligible for a payment if their account was vulnerable because of privacy and security problems alleged in the complaint.”
For those seeking more information on how to claim their payment, the FTC has advised consumers to refer to its FAQ page. This resource provides clarity about the compensation process in-detail, so make sure to check it out if you have been impacted.
Final Word
The FTC’s move sends a strong message about the importance of privacy and security, reminding tech companies to protect user data and build trust.
Anas Hasan
April 25, 2024
1 week ago
