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  • Parv Jain

Major Data Breach: US Carriers Fined Millions for Customer Info Leak

Data Breach

The US government has fined four major wireless carriers—AT&T, Sprint, T-Mobile, and Verizon—for illegally sharing customers' data without their permission. This decision follows an investigation that started due to concerns raised in 2020. The Federal Communications Commission (FCC) found that these companies shared users' location data with third parties, including some who provided services to prisons, without the users' consent.


Here’s what each company must pay: AT&T is fined $57 million, Verizon $47 million, Sprint $12 million, and T-Mobile the highest at $80 million. Even though the carriers said they stopped this practice back in 2018, it continued for at least a year after. All four carriers plan to challenge these fines, arguing that the FCC's decision is not based on solid legal or factual grounds. They all stress their commitment to protecting customer privacy. The investigation gained significant attention in 2018 after Senator Ron Wyden highlighted the issue, leading to broader scrutiny of protecting consumer data.


FAQs

Q1. What did the wireless carriers do wrong?

The carriers, including AT&T, Sprint, T-Mobile, and Verizon, were fined for sharing customers' location data without getting proper permission. They shared this data with third parties, such as companies that provide phone services to prisons.


Q2. Will the carriers have to pay immediately?

Not immediately. The carriers plan to appeal the decision, which means they will challenge the fines in court and argue that the FCC's ruling was not correct.


Q3. What can customers do if they feel their data has been misused?

Customers can file complaints with the Federal Communications Commission (FCC) or contact their service provider to inquire about data usage and privacy policies.


Q4. What is a data breach in the context of this situation?

In this situation, a data breach refers to the unauthorized sharing of customers’ personal location data by AT&T, Sprint, T-Mobile, and Verizon with third-party companies without the customer's consent.


Reference


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