Company Settles With FTC In Minn. Security Breach

ST. PAUL, Minn. (AP) -- The company that allegedly failed to protect the personal information of 500 Minnesota employees and 37,000 consumers nationwide has settled with the Federal Trade Commission.

Texas-based Lookout Services was hired by the state of Minnesota under Gov. Tim Pawlenty's administration. In 2009, weaknesses were discovered in the company's practices, and information like employee's birth dates and Social Security numbers were too easily accessed online.

Minnesota Public Radio reports entering into a 20-year agreement with the FTC, Lookout Services is not admitting wrongdoing and does not have to pay a fine.

A 2009 report by the state's legislative auditor said state officials didn't adequately assess the company or heed warnings about the security of employee data.

A representative from the company was not immediately available for comment.

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