AT&T to Pay $25 Million Penalty for Data Breaches

Advertisement
By Agence France-Presse | Updated: 9 April 2015 10:18 IST
AT&T will pay a $25 million (roughly Rs. 155 crores) fine for "lax security" at overseas call centers where employees stole personal data for mobile phone traffickers, US regulators said Wednesday.

The Federal Communications Commission announced the settlement in the case which affected some 280,000 AT&T customers.

FCC officials said the lack of security at AT&T call centers in Mexico, Colombia, and the Philippines allowed employees in those locations to steal personal information which could be used to "unlock" stolen phones.

The employees "provided that information to unauthorized third parties who appear to have been trafficking in stolen cell phones or secondary market phones that they wanted to unlock," an FCC statement said.

Advertisement

The breach allowed those in the scheme to get customer names, full or partial social security numbers and other data that could be used to submit an "unlock" request to the big US telecom carrier, allowing them to resell stolen devices.

Advertisement

The breaches exposed US victims to potential identity theft, according to the FCC, which said the settlement requires AT&T to offer credit monitoring and notifications to affected consumers.

FCC chairman Tom Wheeler said the agency "cannot and will not stand idly by when a carrier's lax data security practices expose the personal information of hundreds of thousands of the most vulnerable Americans to identity theft and fraud."

Advertisement

The FCC began a probe after learning of a 168-day data breach that took place at an AT&T call center in Mexico between November 2013 and April 2014.

During this period, three call center employees were paid by outside parties to obtain customer information that could then be used to submit online requests for cellular handset unlock codes, the FCC said.

Advertisement

In Mexico, some 68,000 customers had data compromised, according to investigators.

The probe later was extended to call centers in Colombia and the Philippines. In those two countries, 40 employees were able to access the confidential data and sold information on around 211,000 customers, the FCC said.

The FCC said the case represented its "largest privacy and data security enforcement action to date" and also requires AT&T to upgrade its security procedures and appoint a privacy compliance officer.

AT&T said in a statement regarding the case that it sees customer privacy as "critical."

"We hold ourselves and our vendors to a high standard. Unfortunately, a few of our vendors did not meet that standard and we are terminating vendor sites as appropriate," the company said

"We've changed our policies and strengthened our operations. And we have, or are, reaching out to affected customers to provide additional information."

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Oppo Find X9 Series Price in India Leaked Again Ahead of Debut
  2. Oppo Reno 15 Series Launched With Up To 6,500mAh Battery: See Price, Features
  3. Vivo X300 and Teleconverter Kit India Prices Tipped Ahead of Launch
  4. Here's When the Nothing Phone 3a Lite Will Launch in India
  5. Mastiii 4 OTT Release Date Tipped Online: Know When and Where to Watch it Online?
  6. Landman Season 2 Now Streaming on JioHotstar: Everything You Need to Know
  1. Oppo Find X9 Series Launching Today: Know Price in India, Features, Specifications and More
  2. Astronomers Uncover the Vast Greater Pleiades Complex with 3,000 Hidden Stars
  3. Astronomers Capture First-Ever Early Snapshot of Supernova Shock Wave Using ESO’s VLT
  4. Artemis Era Raises Safety Concerns as Lunar Orbit Nears Capacity, New Study Finds
  5. SpaceX Sends Sentinel-6B to Orbit for Precision Sea-Level Tracking
  6. India Approves Chandrayaan-4 Moon Sample Mission and National Space Station
  7. Landman Season 2 Now Streaming on JioHotstar: Everything You Need to Know About This American Political Drama Series
  8. Nadu Center OTT Release Date: Know When to Watch This JioHotstar Specials Tamil Series Online
  9. Usiru OTT Release Date Revealed: Know Where to Watch This Kannada Thriller Online
  10. Boron Arsenide Surpasses Diamond in Heat Conductivity, Paving Way for Advanced Electronics
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.