FCC warns telecom firms to protect data.(PRIVACY)

The Federal Communications Commission (FCC) wants to fine hundreds of small telecommunications providers more than $13 million for not following new rules designed to protect customer phone data.

Federal regulators have proposed $20,000 fines for more than 650 small phone, pager, and wireless providers, accusing them of not filing paperwork proving that they are actively protecting customer records, The Wall Street Journal reported.

In April 2007, the FCC responded to consumer complaints about data brokers selling their personal information by requiring phone companies to follow strict new privacy rules.

As part of those requirements meant to increase phone record security, telecom companies must require customers to provide a password before they can provide account information over the phone or online. The FCC also requires phone companies to notify customers when changes are made to their accounts or if their information has been improperly accessed, the Journal said.

[ILLUSTRATION OMITTED]

The companies are required by the FCC to file annual reports certifying that they have complied with those mandates. However, the FCC said hundreds of small companies didn't provide the information in 2008, which was the first year the certification paperwork was required. The agency has warned companies not in compliance that future noncompliance may result in "more severe penalties."

Print Get the Mag Weekly Updates