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FTC Urges Start-ups To Adopt Information Security

Now since the FTC has been granted the authority to enforce information security on firms not adhering to regulatory standards, they are also issuing global warnings. The FTC has warned all start-ups to adopt information security into their growth plans.

This makes sense because start-ups are typically concerned with raising capital and increasing the number of users in their database and often are not concerned with securing the consumers privacy and/or transactions. Most start-ups deal with security matters after they are successful and have millions of users operating in their platform. This is not a good strategy and is not fair to the consumers that are taking part in their products and services. If a startup fails during their inception, they will loose the confidence of their consumers and eventually default to zero.

With the FTC warning start-ups of this shortcoming, we believe they will begin to make examples of certain startups to prove their point and more importantly to have start-ups adopt information security during the formation of their company.

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