In a significant development, the Federal Communications Commission (FCC) has reached a USD 13 million settlement with AT&T, following the investigation into the telco’s supply chain practices and the way it handled a data breach that compromised customer information.
The breach, which occurred in January 2023, involved unauthorized access to AT&T’s customer data stored in a vendor’s cloud environment.
As part of the settlement, AT&T has agreed to a Consent Decree, committing to enhance its data governance practices. This includes strengthening supply chain integrity and implementing robust procedures to better protect sensitive customer information.
“The Communications Act makes clear that carriers have a duty to protect the privacy and security of consumer data, and that responsibility takes on new meaning for digital age data breaches,” said FCC Chairwoman Jessica Rosenworcel. “Carriers must take additional precautions given their access to sensitive information, and we will remain vigilant in ensuring that’s the case no matter which provider a customer chooses.”
The Consent Decree underscores the growing importance of privacy, cybersecurity, and supply chain security, particularly in the context of cloud services and vendor management. It highlights the vulnerabilities in vendor oversight across the industry and the need for stringent measures to protect consumer data.
The FCC has made it clear that it will hold AT&T accountable for implementing the necessary changes to comply with the Consent Decree and the Communications Act.
This follows a history of data protection issues for the telecom giant, including a USD 57 million fine issued by the FCC in April 2024 for improperly disclosing customer location data to unauthorized third parties without consent. As a result, approximately 90 million customers were affected in 2022.
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