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T-Mobile Agrees $31.5 Million Settlement Over Data Breaches
https://www.whatjobs.com/news/usa/us-business-news/t-mobile-agrees-31-5-million-settlement-over-data-breaches
By Hugh Fort in US business news, posted October 2, 2024
T-Mobile has agreed to a $31.5 million settlement to resolve an investigation into multiple data breaches spanning three years.
The breaches happened between 2021 and 2023. They compromised the personal information of tens of millions of US consumers, according to a statement by the Federal Communications Commission (FCC).
As part of the settlement, T-Mobile will pay a $15.75 million civil penalty. It will also invest an additional $15.75 million over the next two years to bolster its cybersecurity program.
Impact of the Breaches
The FCC reported T-Mobile experienced significant data breaches in each of the last three years. These affected millions current, former, and potential customers.
The 2021 breach alone impacted 76.6 million US consumers, while the 2023 breach affected 37 million customers.
T-Mobile is the third-largest wireless carrier in the US with 119.7 million customers. It has committed to addressing "foundational security flaws," and improving cyber hygiene. It will also adopt modern security architecture like zero-trust models and phishing-resistant multi-factor authentication.
FCC’s Stance on Cybersecurity
FCC Chairwoman Jessica Rosenworcel emphasized the growing threat of cyberattacks targeting mobile networks.
She said:
“Today’s mobile networks are top targets for cybercriminals.”
Rosenworcel also issued a warning to service providers, urging them to enhance their cybersecurity measures or face consequences.
She added:
“We will continue to send a strong message to providers entrusted with this delicate information that they need to beef up their systems or there will be consequences,” Rosenworcel added.
T-Mobile’s Response
A T-Mobile spokesperson said:
"We take our responsibility to protect our customers’ information very seriously."
They also highlighted the "significant investments" it has made in strengthening its cybersecurity infrastructure and vowed to continue enhancing its defenses.
Other Carriers Under Scrutiny
T-Mobile is not alone in facing consequences for data breaches.
Earlier this month, the FCC announced AT&T had agreed to pay $13 million to settle an investigation into a data breach involving a cloud vendor in January 2023, which impacted 8.9 million customers.
In a separate incident in July, AT&T revealed a massive hacking event in April 2023, during which unauthorized actors illegally downloaded information from approximately 109 million customer accounts. This case remains under FCC investigation.
Additionally, in July, Verizon’s TracFone Wireless agreed to a $16 million settlement with the FCC over data breaches and pledged to implement new cybersecurity measures.
The Future of Cybersecurity for Telecom Providers
With cyberattacks becoming more sophisticated, telecom providers are under increasing pressure to strengthen their defenses. The T-Mobile settlement underscores the critical importance of robust cybersecurity measures in safeguarding customer data.
As threats continue to evolve, companies must prioritize data security to protect both their customers and their reputations.
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