FCC Plans $10 Million Cybersecurity Fine Against Two Telecoms

On October 24, 2014, the Federal Communication Commission ("FCC") took a big step into the cybersecurity regulatory space when it announced its intent to assess a $10 million fine against two telecoms, TerraCom and YourTel America ("Companies"), for failing to protect the privacy of personal information the Companies collected from consumers. According to the FCC, the Companies did not properly secure the personal information collected from applicants of the Lifeline program, which is designed to help low-income individuals and families receive communications services. The names, addresses, Social Security numbers, and other personal information of the applicants were stored on a server maintained by a third-party service provider that was publicly accessible from the Internet. A reporter discovered the consumer information using a Google search and notified the Companies, who in turn notified the FCC. The FCC also alleged that both Companies failed to notify all of