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FCC gets hard on small telco companies - fines totalling $13M

2009-02-26 15:46:12 (GMT) (Caymanmama.com - Technology News)

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The FCC

he Federal Communications Commission (FCC) has cracked down on over 660 small telecommunications companies with $13.3 million in fines over security of customer information

Fresno, California (CaymanMama.com) –  The Federal Communications Commission (FCC) has cracked down on over 660 small telecommunications companies, slapping them with a total of $13.3 million in fines for failing to confirm that they are taking extra measures to keep customer information secure.

The FCC’s made this stern move as part of an attempt to bolster rules concerning customer information.

In recent years, it was discovered that private investigators and alleged “data broker” were able to extract phone records and other personal information from telco companies. This is commonly called “pretexting”and is done when companies are called under a false pretense.

According to the Associated Press, “Last year, the FCC required for the first time that companies file statements to certify that they are following regulations on customer information. The companies must list the actions they are taking to thwart data brokers and complaints they have received from customers.”

Each telco company (phone, paging, cable, Internet service and business communications companies were included in the discipline) was fined $20,000 on Tuesday for failure to make those filings last year. They have the opportunity to challenge the fine.



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