Two US telecom companies to pay $3.5 million for data breach

Two sister mobile and telecom service providers will pay a combined US$3.5 million after the U.S. Federal Communications Commission found that they were storing customers’ personal data on unprotected servers accessible over the Internet.

TerraCom and YourTel America failed to adequately protect the personal information of more than 300,000 customers, the FCC said. The settlement stems from a 2013 incident when an investigative reporter found customer records from the companies’ low-income Lifeline programs online, the agency said in an October 2014 proposal to fine the companies.

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