CFIUS Slaps T-Mobile with Record $60 Million Fine for Data Breaches

The Committee on Foreign Investment in the U.S. (CFIUS) has fined T-Mobile $60 million, the largest penalty in its history, for failing to prevent and report data breaches. The breaches occurred during T-Mobile's merger with Sprint. U.S. officials said the penalty aims to enhance enforcement and transparency in future compliance.

A powerful U.S. committee that scrutinizes foreign investment for national security risks has imposed its largest penalty ever, fining T-Mobile $60 million for data breach failures, senior U.S. officials announced on Wednesday.

The Committee on Foreign Investment in the U.S. (CFIUS) said the fine is tied to violations of a mitigation agreement made as part of T-Mobile's $23 billion acquisition of Sprint in 2020. The German-owned company failed to prevent and promptly report sensitive data breaches occurring in 2020 and 2021.

T-Mobile attributed the breaches to technical issues during post-merger integration. The committee emphasized that the size of the fine and the decision to publicize it mark a new rigorous approach to enforcement, with six penalties issued in the last 18 months, aiming to ensure compliance and transparency in handling national security risks.

(With inputs from agencies.)