AT&T has agreed to pay $13 million to settle a Federal Communications Commission (FCC) investigation following a January 2023 data breach that compromised customer information. The breach occurred when hackers infiltrated the cloud environment of one of AT&T’s vendors, stealing sensitive customer data. The investigation focused on whether AT&T took adequate measures to protect its customers’ data and prevent such attacks.
Under the terms of the settlement, AT&T entered a consent decree requiring the company to strengthen its data governance practices, improve supply chain integrity, and establish clearer procedures for handling sensitive data. The settlement also obliges AT&T to implement a robust data inventory program, conduct annual compliance audits, and enforce stricter vendor controls, ensuring adherence to data retention and disposal obligations.
FCC Chairwoman Jessica Rosenworcel emphasized that carriers like AT&T are responsible for safeguarding consumer data under the Communications Act, especially in the digital age, where data breaches pose increasing risks. Rosenworcel affirmed that the FCC will continue to monitor compliance and enforce stricter cybersecurity standards for telecom companies.
An AT&T spokesperson noted that customers affected by the breach were notified in March 2023, with data stolen pertaining to wireless account information. The FCC highlighted that due to AT&T’s vast customer base, the telecom giant will likely need to invest significantly in compliance efforts moving forward.
This settlement is part of a broader FCC initiative to ensure telecommunications providers take proactive steps to secure customer data. Similar enforcement actions in 2023 led to a consent agreement with Verizon, underscoring the growing scrutiny of cybersecurity practices across the industry.
Additionally, it was revealed that AT&T paid a ransom to hackers who obtained metadata from nearly all call logs and text messages over a six-month period in 2022, impacting around 109 million customers. This incident came after a separate cyberattack where data from 73 million current and former customers was compromised, further emphasizing the need for stronger data protection measures within the industry.
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