US reaches $31.5 million settlement with T-Mobile over data breaches

investing.com 30/09/2024 - 16:44 PM

T-Mobile Settles FCC Investigation

By David Shepardson

WASHINGTON (Reuters) – T-Mobile has reached a $31.5 million settlement to resolve a probe by the Federal Communications Commission (FCC) into significant data breaches over three years that impacted tens of millions of U.S. consumers, the agency said on Monday.

T-Mobile will pay a $15.75 million civil penalty and has agreed to spend another $15.75 million over two years to strengthen its cybersecurity program. The FCC stated T-Mobile suffered data breaches in 2021, 2022, and 2023 that affected millions of current, former, or prospective T-Mobile customers.

The 2021 breach alone impacted 76.6 million U.S. consumers, while a 2023 breach impacted 37 million, according to the FCC.

The FCC said T-Mobile, the nation’s third-largest wireless carrier with 119.7 million customers, will address “foundational security flaws, work to improve cyber hygiene, and adopt robust modern architectures, like zero trust and phishing-resistant multi-factor authentication.”

FCC Chairwoman Jessica Rosenworcel noted, “Today’s mobile networks are top targets for cybercriminals. 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.”

T-Mobile did not immediately respond to a request for comment.

Earlier this month, the FCC said AT&T (NYSE:T) agreed to pay $13 million to resolve an investigation into a data breach of a cloud vendor in January 2023 that impacted 8.9 million customers.

AT&T disclosed in July a separate massive hacking incident in April that resulted in the illegal downloading of about 109 million customer accounts, which is under FCC investigation.

In July, the FCC reported that Verizon (NYSE:VZ)’s TracFone Wireless agreed to pay $16 million over data breaches and implement reforms.




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