AT&T fined $13M for data breach after giving customer bill info to vendor

AT&T fined $13M for data breach after giving customer bill info to vendor

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AT&T consented to pay a $ 13 million fine since it offered consumer expense details to a supplier in order to develop tailored videos, then supposedly stopped working to guarantee that the supplier damaged the information when it was no longer required. In addition to the fine, AT&T accepted more stringent controls on sharing information with suppliers in an approval decree revealed today by the Federal Communications Commission.

In January 2023, years after the information was expected to be damaged, the supplier suffered a breach “when threat actors accessed the vendor’s cloud environment and ultimately exfiltrated AT&T customer information,” the FCC stated. Info associated to 8.9 million AT&T cordless clients was exposed.

Telephone company are needed by law to safeguard consumer details, and AT&T must not have actually simply depended on third-party companies’ guarantees that they ruined information when it was no longer required, the FCC stated.

“AT&T used the vendor to generate and host personalized video content, including billing and marketing videos, for AT&T customers,” an FCC news release stated. “Under AT&T’s contracts, the vendor should have destroyed or returned AT&T customer information when no longer necessary to fulfill contractual obligations, which ended years before the breach occurred. AT&T failed to ensure the vendor: (1) adequately protected the customer information, and (2) returned or destroyed it as required by contract.”

The information “remained in the vendor’s cloud environment for many years after it should have been deleted or returned to AT&T and was ultimately exposed” in the January 2023 breach, an FCC Enforcement Bureau order stated.

Information need to have been erased in 2018

AT&T informed the FCC that it shared client information with the supplier in between 2015 and 2017, which information was expected to be “securely destroyed or deleted” by 2018. The exposed information consisted of “line count for all impacted customers, and bill balance and payment information and rate plan name and features for approximately one percent of impacted customers,” the FCC stated.

AT&T informed Ars today that the information “did not contain credit card information, Social Security Numbers, account passwords or other sensitive personal information.” AT&T stated it alerted clients of the breach in March 2023.

“AT&T stated that it monitored impacted customer accounts following the incident and identified no evidence of AT&T account-related fraud or other unlawful or unauthorized activity tied to the Breach,” the approval decree stated. “According to AT&T, porting, SIM swap, and equipment fraud rates for impacted customers following the incident were consistently less than the rates for the general population of AT&T Mobility customers across all account types.”

When gotten in touch with by Ars, AT&T did not react straight to the FCC’s accusation that it stopped working to make sure the supplier safeguarded consumer details. AT&T supplied us with a declaration stating, “A vendor we previously used experienced a security incident last year that exposed data pertaining to some of our wireless customers. Though our systems were not compromised in this incident, we’re making enhancements to how we manage customer information internally, as well as implementing new requirements on our vendors’ data management practices.”

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