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Verizon Subsidiary TracFone Settles With FCC for $16 Million Over Three Data Breaches

The FCC says TracFone experienced three API-related breaches from January 2021 to January 2023. Its July 2024 Consent Decree settled investigations for $16 million.
From TheFinanceBase Team2 min to read
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The Federal Communications Commission announced a $16 million Consent Decree with TracFone Wireless on July 22, 2024, resolving agency investigations into whether the carrier reasonably protected customer information. The FCC says three breaches between January 2021 and January 2023 involved exploited application programming interfaces (APIs), exposed customer information, and numerous unauthorized phone-number port-outs. The announcement does not state how many customers were affected.

What happened in the TracFone data breaches?

According to the FCC, TracFone experienced three data breaches from January 2021 through January 2023. The agency says the incidents involved exploitation of APIs—connections that let computer programs or components communicate, including to access information on websites. The FCC says the activity led to unauthorized access to or exposure of customer proprietary information and numerous unauthorized port-outs.

A port-out transfers a phone number from one carrier to another. Unauthorized port-outs can put a customer’s ability to use their number at risk, but the FCC’s announcement does not describe individual customers’ losses or provide a total count of affected people.

What information was involved?

The FCC identifies some of the information as customer proprietary network information (CPNI) and personally identifiable information (PII). The announcement does not specify every data element involved or say how many customers’ records were affected, so neither a comprehensive list of exposed information nor an affected-customer total can be stated from it.

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Why did TracFone settle with the FCC for $16 million?

The FCC said the Consent Decree resolves its investigations into whether TracFone reasonably protected customer information. It announced the $16 million settlement on July 22, 2024. That is an agency settlement resolving investigations; the announcement does not say a court found TracFone liable.

The FCC pointed to Sections 222 and 201 of the Communications Act as relevant to carriers’ duties concerning customer information. Its release says the decree includes terms aimed at strengthening TracFone’s API security. It does not detail the specific compliance deadlines, audits, reporting schedules, or remediation milestones in the decree.

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Loyaan A. Egal, then chief of the FCC Enforcement Bureau and chair of its Privacy and Data Protection Task Force, said the investigations and Consent Decree made clear that “API security is paramount and should be on the radar of all carriers.”

How are Verizon and TracFone connected?

TracFone Wireless is a wholly owned Verizon subsidiary. Verizon acquired TracFone in November 2021, during the period covered by the FCC’s breach chronology. The FCC’s announcement names Straight Talk, Total by Verizon Wireless, and Walmart Family Mobile as service brands associated with TracFone.

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The settling carrier was TracFone, not a separate settlement with each named service brand. The FCC announcement identifies the brands but does not provide a brand-by-brand breakdown of incidents or affected customers.

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What customers can and cannot conclude from the announcement

The FCC’s release establishes the agency’s account of three API-related breaches, the types of information it says were involved, and the settlement’s general security focus. It does not establish a total number of affected customers, identify every exposed data element, or explain what happened to any particular customer’s information.

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Customers seeking to determine whether their own account or number was affected would need information from TracFone or the relevant service brand; the FCC announcement itself does not identify individual affected accounts. For the precise legal obligations and decree terms, consult the Consent Decree and the Communications Act rather than inferring details from the press release.

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