Cheapo telcos fined for their cheapo security: Financial records on 305,000 people spilled

  • 25 October 2014
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By Shaun Nichols, 25 Oct 2014
 
American watchdog the FCC is fining a pair of US mobile operators for an astonishing lack of security in handling customer information.
The commission said that TerraCom Wireless and YourTel Wireless improperly stored information on 305,000 customers and will have to pay a joint fine of $10m split between the two firms as a penalty.
 
According to the FCC's order, the two companies used a web service which did not properly secure customer records and personal information.
Both companies offered the discounted Lifeline Assistance phone service for low-income residents of the US. As part of the registration process, customers are required to submit financial records which prove that their incomes are low enough to qualify for government-backed scheme.
 
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