FCC Enters Into $25 Million Settlement Following Cell Phone Carrier Data Breach
On April 8, the Federal Communications Commission (FCC) announced a $25 million settlement with an international telecommunications carrier concerning the unauthorized release of the personal information of nearly 280,000 customers by certain employees. The alleged data breach took place over a 168-day period at carrier call centers in Mexico, Columbia, and the Philippines where employees of the carrier allegedly were paid by unauthorized third parties to disclose confidential customer information. The third parties appear to have sought the information to unlock and traffic stolen cell phones. The FCC Enforcement Bureau found that the data breach violated a carrier’s duty under Section 222 of the Communications Act and also constituted “an unjust and unreasonable practice” under Section 201. In addition to paying the $25 million civil money penalty, terms of the settlement require the carrier to (i) notify all affected customers and reimburse them for any subsequent credit monitoring services; and (ii) implement new internal policies to improve the carrier’s privacy and data security practices.