- Associated Press - Thursday, March 3, 2016

DES MOINES, Iowa (AP) - A federal agency has fined a Des Moines-based financial technology company for misleading users about the company’s data security practices.

The Des Moines Register (https://dmreg.co/1TUvCDp ) reports that the Consumer Financial Protection Bureau ordered Dwolla to pay $100,000 and bolster how it handles security.

The agency said in an order filed Wednesday that the online payments-transfer network misrepresented the security of its platform, which has users submit personal information to set up an account.

The agency found that Dwolla’s security didn’t always exceed industry standards or encrypt all personal information, even though its website said from January 2011 to March 2014 that it did.

The company transfers up to $5 million daily between 653,000 members as of May 2015.

Dwolla issued an apology Wednesday, saying it didn’t intend to mislead anyone about data security.


Information from: The Des Moines Register, https://www.desmoinesregister.com

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