T-Mobile fined $80 million for failing to prevent and report unauthorized access to sensitive data

It has been revealed that the Committee on Foreign Investment in the United States (CFIUS) has imposed a fine of $60 million (approximately 8.86 billion yen) on telecommunications giant T-Mobile. T-Mobile had entered into a national security agreement with CFIUS before its 2020 merger with Sprint, but the fine was imposed for failing to prevent unauthorized access to classified data and failing to promptly report the breach.

CFIUS Enforcement | US Department of the Treasury

US fines T-Mobile $60 million over unauthorized data access | Reuters
https://www.reuters.com/business/media-telecom/us-committee-slaps-60-million-fine-t-mobile-over-unauthorized-data-access-2024-08-14/

US authorities fine T-Mobile $60 million over data theft | Reuters
https://jp.reuters.com/markets/japan/funds/OKZKRH4HKBNOZMGCV4VVOTI6IE-2024-08-15/

CFIUS Imposes $60 Million Penalty on T-Mobile for Unauthorized Da
https://natlawreview.com/article/cfius-fines-t-mobile-60-million-over-unauthorized-data-access-and-breach-response

According to CFIUS, T-Mobile had entered into a national security agreement with CFIUS in connection with the foreign ownership of entities resulting from its merger with fellow telecommunications giant Sprint in 2020. However, between August 2020 and June 2021, T-Mobile violated the agreement by failing to take appropriate steps to prevent unauthorized access to certain sensitive data, and failed to promptly report the unauthorized access to CFIUS.

CFIUS concluded that T-Mobile's violations of the agreement harmed U.S. national security and imposed a $60 million fine, the largest fine ever imposed by CFIUS.

The company doesn't normally release the names of companies it fines, but the company said it did so to encourage T-Mobile to comply with national security agreements surrounding its acquisitions.

T-Mobile has worked with CFIUS to strengthen its compliance regime and responsibilities, and has committed to continuing to work with the government to ensure compliance with the agreement.