Frontier Communications faces three class action lawsuits after a cyberattack compromised data of over 750,000 subscribers, alleging negligence in protecting sensitive information.
What happened
Frontier Communications, a major telecommunications company headquartered in Dallas, is contending with three class action lawsuits after suffering a data breach.
In April, the company was targeted by a cyberattack orchestrated by the ransomware group RansomHub. Compromised information includes names, dates of birth, and Social Security numbers for over 750,000 subscribers nationwide.
Among them, more than 80,000 Texans had their data exposed, raising concerns about potential identity theft. The lawsuits, filed in the Northern District of Texas, allege that Frontier's failure to adequately protect customer data has left affected individuals vulnerable.
Going deeper
Frontier Communications, which recently relocated its headquarters from Norwalk, Connecticut to Dallas in September, has faced scrutiny over its cybersecurity practices following the breach. The company emerged from Chapter 11 bankruptcy in April 2020 and has been undergoing strategic changes amid pressures from stakeholders.
CEO Nick Jeffery has emphasized Frontier's commitment to digital development, evidenced by its move to a 95,000-square-foot innovation center in Uptown Dallas known as the 'Gigahub'. Despite recent financial improvements reported in its quarterly results, the data breach has prompted assessments of Frontier's cybersecurity preparedness and regulatory compliance.
Additionally, RansomHub posted screenshots online of compromised data with the message, “We gave Frontier 2 months to contact us, but they don’t care about clients’ data. Now, anyone who wants to buy this data can contact our blog support; we only sell it once.” RansomHub threatened to publish the stolen data if Frontier did not pay the ransom within nine days.
What was said
"In their legal filings, plaintiffs argue that Frontier Communications failed in its duty to protect customer data, leading to the exposure of sensitive personal information," stated Joe Kendall of the Kendall Law Group, representing plaintiffs in the lawsuits against Frontier.
Furthermore, "Frontier breached its obligations to Plaintiff and Class Members and/or was otherwise negligent and reckless because it failed to properly maintain and safeguard its computer systems and data.”
Why it matters
Plaintiffs argue that Frontier's alleged negligence in maintaining advanced cybersecurity measures, despite warnings from cyber threats like RansomHub, directly exposed customers to identity theft risks. The outcomes of the lawsuits against Frontier Communications could establish benchmarks for data protection standards within the telecommunications industry and influence broader cybersecurity practices.
Related: HIPAA Compliant Email: The Definitive Guide
