Washington state has taken legal action against T-Mobile US (NASDAQ:TMUS) for allegedly neglecting cybersecurity vulnerabilities, leading to a significant data breach in 2021 that impacted 79 million people across the U.S.
What Happened: The lawsuit, filed by Washington Attorney General Bob Ferguson, accuses T-Mobile of ignoring known security issues and failing to adequately notify over two million Washington residents affected by the breach.
The breach exposed sensitive personal information, such as names, phone numbers, and Social Security numbers.
The lawsuit claims T-Mobile’s notifications about the breach violated the Consumer Protections Act by omitting crucial details, making it difficult for individuals to assess their risk of identity theft.
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Furthermore, the filing criticizes T-Mobile for not adhering to industry cybersecurity standards and using weak passwords to protect sensitive data.
Ferguson emphasized that the data breach was “entirely avoidable” and highlighted T-Mobile’s failure to address vulnerabilities.
The lawsuit seeks compensation for affected customers and demands improvements in T-Mobile’s cybersecurity practices and transparency.
This legal action follows T-Mobile’s previous settlements, including a $350 million payout in 2022 related to the same breach.
Why It Matters: The lawsuit against T-Mobile comes amid heightened concerns over cybersecurity threats, particularly from foreign actors.
In recent years, major telecom companies, including T-Mobile, have been targeted by cyber-espionage operations linked to Chinese intelligence.
A report from November revealed that T-Mobile and other telecom giants, such as AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ), were compromised in a large-scale cyber-espionage operation attributed to Chinese hackers.
This breach raised significant national security concerns as it targeted cellphone communications of high-value intelligence targets.
Earlier in 2024, the FBI warned about Chinese hackers infiltrating U.S. critical infrastructure, including telecommunications, energy, and water sectors.
FBI Director Christopher Wray cautioned that these hackers could potentially “physically wreak havoc” on U.S. infrastructure at a time of their choosing.
These incidents underscore the growing threat of cyberattacks and the need for robust cybersecurity measures to protect sensitive data and national security.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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