Security

CSO

T-Mobile US to cough up $31.5M after that long string of security SNAFUs

At least seven intrusions in five years? Yeah, those promises of improvement more than 'long overdue'


T-Mobile US has agreed to fork out $31.5 million to improve its cybersecurity and pay a fine after a string of network intrusions affected millions of customers between 2021 and 2023.

Specifically, the telco has entered a legal settlement [PDF] with the FCC today that requires the carrier to pay a $15.75 million civil penalty to the US Treasury, and also spend $15.75 million over the next two years on its infosec program, including:

The settlement was reached after the FCC formally accused T-Mo of breaking its obligations under the Communications Act of 1934, which require carriers to do such outlandish things as protecting customers' information from theft and having in place reasonable cybersecurity defenses.

"Implementing these practices will require significant - and long overdue - investments," the FCC's settlement notes. "To do so at T-Mobile's scale will likely require expenditures an order of magnitude greater than the civil penalty here." 

By our count, the un-carrier has suffered at least seven IT security breaches over a five-year period, resulting in tens of millions of customers' data being stolen and leaked on dark web marketplaces. That said, the settlement officially covers four SNAFUs since 2021.

When asked about the deal, a T-Mobile US spokesperson told The Register the telco was already trying to shore up its computer security:

We take our responsibility to protect our customers' information very seriously. This consent decree is a resolution of incidents that occurred years ago and were immediately addressed. We have made significant investments in strengthening and advancing our cybersecurity program and will continue to do so.

As far as we can tell, T-Mo has admitted no wrongdoing in settling this case.

As outlined in the agreement, the first of the privacy breaches occurred in 2021. At that time, a criminal gained access to a T-Mo environment remotely, and ultimately stole a ton of sensitive personal and device information, including PINs, belonging to 76.6 million current, former, and prospective T-Mobile customers.

The FCC goes into some detail about that data theft:

A threat actor was able to gain access to a T-Mobile lab environment via a piece of telecommunications equipment by impersonating a legitimate connection to the piece of equipment.

Prior to achieving this access, the threat actor appears to have engaged in reconnaissance over a period of months. The threat actor was able to exploit this initial access and successfully guess passwords for certain servers, and then moved across network environments. As a result, the threat actor was able to access another lab environment, in which the threat actor engaged in additional network scanning and password-spraying attacks.

This enabled the threat actor to access other environments containing database backup files and other information. Forensic review confirmed the threat actor was able to exfiltrate data from these environments...

A year later, a crook broke into a management platform that T-Mobile US provides to its mobile virtual network operator (MVNO) resellers using a few different tactics, including an illegal SIM swap involving a T-Mo employee and a phishing attack against another employee.

Then in 2023, a miscreant used stolen T-Mob account credentials to access a sales application and view customer data. The un-carrier clocked this privacy breach after an increase in customer port-out complaints. An internal investigation revealed the attacker had stolen credentials belonging to "several dozen" retail employees, and these are believed to have been swiped in a phishing campaign.

And in a separate 2023 incident, T-Mobile US discovered a data security breach involving one of its APIs. "Human error led to a misconfiguration in permissions settings that allowed a threat actor to submit queries and obtain T-Mobile customer account data," the settlement says. Using this API, the data thieves stole a "limited set" of full customer account data along with about 37 million post- and pre-paid customer accounts.

"Today's mobile networks are top targets for cybercriminals," FCC boss Jessica Rosenworcel said in a statement [PDF]. "Consumers' data is too important and much too sensitive to receive anything less than the best cybersecurity protections." 

To this end, the FCC in February issued updated reporting rules that require telcos in America to officially disclose that a criminal has broken into their systems within seven days of discovering the intrusion.

The new FCC rule came just days after Verizon began notifying more than 63,000 people, mostly current employees, that someone had gained illicit access to their personal information. ®

Send us news
4 Comments

Wanted. Top infosec pros willing to defend Britain on shabby salaries

GCHQ job ads seek top talent with bottom-end pay packets

FCC chair: Mobile dead spots will end when space-based and ground comms merge

Jessica Rosenworcel looks at policy challenges for the next decade

Just how private is Apple's Private Cloud Compute? You can test it to find out

Also updates bug bounty program with $1M payout

Five Eyes nations tell tech startups to take infosec seriously. Again

Only took 'em a year to dish up some scary travel advice, and a Secure Innovation … Placemat?

Scientists demand FCC test environmental impacts of satellites

Boffins say it's absurd that the US comms watchdog won't consider atmospheric harms

Windows Themes zero-day bug exposes users to NTLM credential theft

Plus a free micropatch until Redmond fixes the flaw

Sophos to snatch Secureworks in $859M buyout: Why fight when you can just buy?

Private equity giant Thoma Bravo adds another trophy to its growing collection

The billionaire behind Trump's 'unhackable' phone is on a mission to fight Tesla's FSD

Dan O'Dowd tells El Reg about the OS secrets and ongoing clash with Musk

Millions of Android and iOS users at risk from hardcoded creds in popular apps

Azure Blob Storage, AWS, and Twilio keys all up for grabs

Beijing claims it's found 'underwater lighthouses' that its foes use for espionage

Release the Kraken!

Perfctl malware strikes again as crypto-crooks target Docker Remote API servers

Attacks on unprotected servers reach 'critical level'

Merde! Macron's bodyguards reveal his location by sharing Strava data

It's not just the French president, Biden and Putin also reportedly trackable