The Consumer Financial Protection Bureau took action Wednesday against online payment platform Dwolla for deceiving consumers about its data security practices and the safety of its online payment system.
“Consumers entrust digital payment companies with significant amounts of sensitive personal information,” said Richard Cordray, director of the bureau. “With data breaches becoming commonplace and more consumers using these online payment systems, the risk to consumers is growing. It is crucial that companies put systems in place to protect this information and accurately inform consumers about their data security practices.”
Since December 2009, Dwolla has collected and stored consumers’ sensitive personal information and provided a platform for financial transactions.