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Ashley Madison Faces F.T.C. Inquiry Amid Rebranding Ashley Madison Faces F.T.C. Inquiry Amid Rebranding
(about 1 hour later)
The Federal Trade Commission is investigating Ashley Madison, a year after the adultery-focused website was roiled by an enormous breach of its members’ personal data, company executives said on Tuesday.The Federal Trade Commission is investigating Ashley Madison, a year after the adultery-focused website was roiled by an enormous breach of its members’ personal data, company executives said on Tuesday.
Ashley Madison, a service that claims to facilitate extramarital affairs, has been in repair mode since last summer, when hackers exposed information attached to more than 30 million accounts and badly bruised the trust upon which its business was built.Ashley Madison, a service that claims to facilitate extramarital affairs, has been in repair mode since last summer, when hackers exposed information attached to more than 30 million accounts and badly bruised the trust upon which its business was built.
A spokesman for the commission declined to comment on the investigation on Tuesday.A spokesman for the commission declined to comment on the investigation on Tuesday.
Rob Segal, the chief executive of Avid Life Media, Ashley Madison’s parent company, said he did not know the focus of the inquiry, but he said Avid began cooperating with government regulators last August.Rob Segal, the chief executive of Avid Life Media, Ashley Madison’s parent company, said he did not know the focus of the inquiry, but he said Avid began cooperating with government regulators last August.
Since the breach, Avid has been puzzling over how to rebuild its reputation as a platform for discreet romantic encounters, while also contending with public anger that has taken shape in several lawsuits against the company by users whose data was exposed.Since the breach, Avid has been puzzling over how to rebuild its reputation as a platform for discreet romantic encounters, while also contending with public anger that has taken shape in several lawsuits against the company by users whose data was exposed.
In a statement on Monday, the company announced that it planned to pursue a “total repositioning of all its brands.” Company executives said that they would not change the name Ashley Madison, which operates in 46 countries, but that the site would broaden in focus beyond extramarital dating.In a statement on Monday, the company announced that it planned to pursue a “total repositioning of all its brands.” Company executives said that they would not change the name Ashley Madison, which operates in 46 countries, but that the site would broaden in focus beyond extramarital dating.
“Our goal is to build the world’s most open-minded dating community,” James Millership, Avid’s president, said in an interview on Tuesday.“Our goal is to build the world’s most open-minded dating community,” James Millership, Avid’s president, said in an interview on Tuesday.
The website now pitches itself to everyone: “Single, attached, looking to explore, or just curious.”The website now pitches itself to everyone: “Single, attached, looking to explore, or just curious.”
That is in contrast to its old slogan: “Life is short, have an affair.”That is in contrast to its old slogan: “Life is short, have an affair.”
Last August, a hacking group calling themselves Impact Team released nearly 10 gigabytes’ worth of stolen data, including details on members’ names phone numbers and payment transactions. Last August, a hacking group calling themselves Impact Team released nearly 10 gigabytes’ worth of stolen data, including details on members’ names, phone numbers and payment transactions.
The hackers said they were upset about Ashley Madison’s business practices, such as overstating how many women really used the website. According to one analysis, only 15 percent of the site’s users were female. Many of the women listed on the site were believed to be fake profiles.The hackers said they were upset about Ashley Madison’s business practices, such as overstating how many women really used the website. According to one analysis, only 15 percent of the site’s users were female. Many of the women listed on the site were believed to be fake profiles.
In 2014, the F.T.C. fined a British dating company, JDI Dating, after it engaged in a similar practice of faking profiles.In 2014, the F.T.C. fined a British dating company, JDI Dating, after it engaged in a similar practice of faking profiles.
Leaked Ashley Madison emails also showed that the company may have hacked into a rival’s website. In the wake of the disclosures, Avid’s former chief executive, Noel Biderman, stepped down.Leaked Ashley Madison emails also showed that the company may have hacked into a rival’s website. In the wake of the disclosures, Avid’s former chief executive, Noel Biderman, stepped down.
In April, Mr. Segal and Mr. Millership were brought on to rehabilitate the brand.In April, Mr. Segal and Mr. Millership were brought on to rehabilitate the brand.
Among their first steps, Mr. Millership said on Tuesday, was the removal from the site of fembots, computer programs that were used to lure male customers to the site by impersonating women.Among their first steps, Mr. Millership said on Tuesday, was the removal from the site of fembots, computer programs that were used to lure male customers to the site by impersonating women.
“That was one of the criteria that both Rob and I had before joining the company,” he said. “It’s certainly not a business practice that either Rob or I condone.”“That was one of the criteria that both Rob and I had before joining the company,” he said. “It’s certainly not a business practice that either Rob or I condone.”
Mr. Segal said the current male-to-female ratio on Ashley Madison is roughly 5-to-1, which he said is comparable to other dating sites.Mr. Segal said the current male-to-female ratio on Ashley Madison is roughly 5-to-1, which he said is comparable to other dating sites.
The hackers also complained that the company charged members a $19 fee to scrub their profiles from the site, but then failed to do so. Mr. Millership said Ashley Madison has since added a free option to remove data from the site that “is confirmed does in fact work.”The hackers also complained that the company charged members a $19 fee to scrub their profiles from the site, but then failed to do so. Mr. Millership said Ashley Madison has since added a free option to remove data from the site that “is confirmed does in fact work.”
Reports have suggested that the Ashley Madison release of user information had devastating consequences for at least some marriages, as blackmailers threatened to tell wives and the attempted adultery of prominent people ended up in news pages. A New Orleans pastor, who was married with two children, committed suicide after his name was included in the data dump.Reports have suggested that the Ashley Madison release of user information had devastating consequences for at least some marriages, as blackmailers threatened to tell wives and the attempted adultery of prominent people ended up in news pages. A New Orleans pastor, who was married with two children, committed suicide after his name was included in the data dump.
Company executives said on Tuesday that Avid has been investing heavily in defenses to its networks since the breach and had hired security experts at Deloitte, a consultant, in September to identify flaws and help patch them up.Company executives said on Tuesday that Avid has been investing heavily in defenses to its networks since the breach and had hired security experts at Deloitte, a consultant, in September to identify flaws and help patch them up.
Robert Masse, who leads Deloitte’s incident response team, said that the focus of its work was not on identifying how the breach occurred, but making sure potential vulnerabilities were addressed.Robert Masse, who leads Deloitte’s incident response team, said that the focus of its work was not on identifying how the breach occurred, but making sure potential vulnerabilities were addressed.
The team has focused on adding new safeguards against phishing attacks, which use malicious emails to steal data, and instituting 24/7 monitoring of the company’s infrastructure, he said.The team has focused on adding new safeguards against phishing attacks, which use malicious emails to steal data, and instituting 24/7 monitoring of the company’s infrastructure, he said.
Company executives said on Tuesday that despite the harsh publicity, Ashley Madison has been growing and now has more than 45 million members. Mr. Millership said the company was on course to post about $80 million in revenue this year, down about a quarter from its 2015 revenue.Company executives said on Tuesday that despite the harsh publicity, Ashley Madison has been growing and now has more than 45 million members. Mr. Millership said the company was on course to post about $80 million in revenue this year, down about a quarter from its 2015 revenue.
Avid, based in Toronto, also operates Cougar Life, a website that claims to pair older women with younger men, and Established Men, which offers to facilitate relationships between women and wealthy men.Avid, based in Toronto, also operates Cougar Life, a website that claims to pair older women with younger men, and Established Men, which offers to facilitate relationships between women and wealthy men.