T-Mobile Fined $60 Million for Failing to Report Data Breaches
Largest Penalty Ever for Negligence
The Committee on Foreign Investment in the United States (CFIUS) has fined T-Mobile US$60 million for failing to report data breaches that put national security at risk.
Penalties Stemming From Breach of National Security Agreement
T-Mobile's alleged failure to disclose the data breaches violated a national security agreement required for the company's merger with Sprint in 2020. The fine is the largest ever imposed by CFIUS for such a violation.
Details of the Breach
- The breaches occurred in 2021 and exposed the personal information of millions of T-Mobile customers.
- The breaches were allegedly caused by a "rogue employee" who gained access to the company's systems.
- T-Mobile failed to report the breaches to CFIUS in a timely manner, as required by the national security agreement.
Implications of the Fine
The fine sends a strong message to companies that they must take data security seriously and comply with national security agreements. Failure to do so can result in significant financial penalties and damage to reputation.
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