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early unsuccessful legal challenges to the encrypted all sensitive personal information Corey D. Silverstein, Esq., Attorney, Law Offices
of Corey D. Silverstein, P.C. - Corey Silverstein is the
constitutionality of some of the provisions of and that its mobile applications were safe and
managing and founding member of the Law Offices
the CFPB, the CFPB continues to enhance the secure.
of Corey D. Silverstein, P.C. After receiving his
number of its enforcement activities.
Bachelor of Science degree from Purdue University
Following its investigation, the CFPB alleged
in 2002, Mr. Silverstein attended the University of
Very recently (on March 2, 2016, to be exact), that Dwolla misrepresented its data-security Detroit Mercy School of Law and earned his Juris
the CFPB imposed the frst data security fne of practices by falsely claiming its data security Doctor degree in 2006. Following law school,
its kind against Dwolla, Inc. (“Dwolla”). Dwolla practices “exceed” or “surpass” industry security Mr. Silverstein founded the Law Offices of Corey
D. Silverstein, P.C. in 2006. His practice focuses
has been described as a payment platform and standards and false claiming its “information
on representing all areas of the adult industry
according to its website, Dwolla describes itself is securely encrypted and stored”. Ultimately
and his clientele includes hosting companies,
as “The ideal way to move money”; “Our digital the CFPB entered into a Consent Order which affiliate programs, content producers, processing
payment network securely connects with U.S. can be found at: http://fles.consumerfnance. companies, website owners and developers,
banks and credit unions to enable safe, fast, gov/f/201603_cfpb_consent-order-dwolla- just to name a few. Mr. Silverstein is especially
familiar with the latest amendments to 18 USC
bank transfers.”. (www.dwolla.com). inc.pdf.
2257, DMCA issues, obscenity laws, copyright
claims, corporate law (including international
According to the CFPB’s own website, “The So just in case you didn’t have enough to worry
incorporation), criminal defense and various other
Consumer Financial Protection Bureau today about with government agencies including the
areas of the law. Mr. Silverstein is an acclaimed
took action against online payment platform State Attorney Generals and the FTC, the CFPB litigator and dispute resolution specialist. His
Dwolla for deceiving consumers about its data Is now putting everyone on notice that they practice also concentrates on complex contracts
security practices and the safety of its online aren’t messing around when it comes to data and business structure and formation. Mr.
Silverstein prides himself in providing prompt and
payment system.” (www.consumerfnance.gov). security practices and prosecuting those who
aggressive representation tailored to each of his
The end result was an apparent settlement decide to misrepresent their data-security
clients’ individual needs. Mr. Silverstein is licensed
between the CFPB and Dwolla, Inc. that imposes policies. in numerous jurisdictions, including, Michigan,
a $100,000 fne and requires Dwolla to “fx its Arizona and the District Columbia. Mr. Silverstein
security practices”. On top of the monetary fne, The lesson to be learned here is that all is regularly featured in adult industry periodicals
Dwolla is required pursuant to the Consent online services need to immediately re-assess including XBiz and AVN and has been quoted and
published in mainstream media including the
Order to regularly report to the CFPB (including their data security practices and what is
New York Times, FOX News, MSNBC, the Miami
providing audit reports and compliance being disclosed to its consumers in terms of Herald, the Washington Post, the Detroit News
plans), adopt and implement reasonable its privacy policy and protection. Now is the and the Associated Press. Mr. Silverstein regularly
and appropriate data security measures to time for online services to meet with counsel speaks at conferences in the United States and
protect consumers’ personal information to review all of the business’s practices and Canada and has won numerous awards including
the “Rising Star” award from Super Lawyers in
on its networks and applications, including statements to its consumers. Waiting until the
2015. Mr. Silverstein is a member of numerous
the implementation of a comprehensive FTC, the CFPB, or a State’s Attorney General is
legal associations including the First Amendment
data security plan, conducting semiannual knocking on your door will prove to be a costly Lawyers Association (FALA) and the Foundation
security risk assessments, conducting regular, mistake. Sticking your head in the sand and for Individual Rights in Education (F.I.R.E). Mr.
mandatory employee training, and obtaining thinking that this couldn’t happen to you is Silverstein has a 10.0 (Superb) rating from
an external annual data security audit. Between dangerous and irresponsible. I’d also strongly Avvo.com and has been recognized by his peers
as a “top lawyer” by numerous organizations.
the monetary fnes, legal costs and the cost of urge all online businesses to discuss with
Myadultattorney.com is a website dedicated to the
complying with the Consent Order, this has and their insurance agents the types of insurance representation of adult clientele. Mr. Silverstein
will continue to be a very expensive matter for that may be available to provide some degree can be reached through Myadultattorney.com
Dwolla. of protection in the event of a data or privacy or by email at corey@myadultattorney.com. Mr.
breach. Silverstein can also be contacted by telephone at
248-290-0655.
According to its website, the CFPB alleged that
from December 2010 to 2014, Dwolla claimed The time to act is now. There is no shame in
to protect consumer data from unauthorized learning from the mistakes of others. This article does not constitute legal advice and
access with “safe” and “secure” transactions. is provided for your information only and should
On its website and in communications with not be relied upon in lieu of consultation with legal
advisors in your own jurisdiction. It may not be
consumers, Dwolla claimed its data security
current as the laws in this area change frequently.
practices exceeded industry standards and
Transmission of the information contained in this
were Payment Card Industry Data Security
article is not intended to create, and the receipt
Standard compliant. They claimed also that they does not constitute, an attorney-client relationship
between sender and receiver.

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