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America's Phone Networks Could Soon Face Financial - and Criminal - Penalties for Insecure Networks


The head of America's FCC "has drafted plans to regulate the cybersecurity of telecommunications companies," reports the Washington Post, and the plans could include financial penalties phone network operators with insufficient security — "the first time the agency has asserted such powers und...

Rosenworcel said the FCC's authority in this matter comes from Section 105 of the Communications Assistance for Law Enforcement Act [passed in 1994] — a single sentence that stipulates, without elaboration, that telecommunications carriers should ensure systems security "in accordance with regulations prescribed by the Commission." As one of the measures, she is seeking to require network providers to submit an annual certification to the FCC that they are implementing a cybersecurity risk management plan. In addition to imposing fines, the FCC could coordinate with other agencies to pursue criminal penalties against carriers deemed too careless on cybersecurity... Biden administration officials said voluntary efforts to protect against aggressive Chinese hacking activity have fallen short.

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