The CFPB took action against the online payment platformprovider Dwolla for deceiving consumers about its data securitypractices and the safety of its online payment system.
The bureau ordered the Des Moines, Iowa-based Dwolla, an agentof the $2.7 billion, Waterloo, Iowa-based VeridianCredit Union and the Houston-based Compass Bank, to pay a$100,000 penalty and fix its security practices.
“Consumers entrust digital payment companies with significantamounts of sensitive personal information,” CFPB Director RichardCordray said. “With data breaches becoming commonplace and moreconsumers using these online payment systems, the risk to consumersis growing. It is crucial that companies put systems in place toprotect this information and accurately inform consumers abouttheir data security practices.”
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Roy Urrico
Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).
