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US regulator imposes first fine over data security

Published Sun, Oct 26, 2014 · 09:50 PM
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Washington

THE Federal Communications Commission (FCC) has imposed a US$10 million fine on two telecom companies that allegedly stored personally identifiable customer data online without firewalls, encryption or password protection.

The firms, YourTel America and TerraCom, share the same owners and management. From September 2012 to April 2013, the FCC said, they collected information from applicants to Lifeline, the government's telephone subsidy programme for poor Americans. To prove their eligibility, potential customers were asked for personal information, including Social Security numbers, birth dates, addresses, names and driver's licence numbers.

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