Germany Imposes $51 Million Penalty on Vodafone for Privacy and Security Violations
The German Federal Data Protection Authority (BfDI) has imposed a fine of €45 million (approximately $51.4 million) on Vodafone GmbH, the German subsidiary of the multinational telecommunications company, in response to violations of privacy and security regulations.
The BfDI identified incidents of fraud stemming from malicious actions by employees of partner agencies who managed customer contracts on behalf of Vodafone. This involved unauthorized modification of contracts and the creation of fictitious agreements, ultimately harming customers.
A fine of €15 million was levied due to Vodafone’s inadequate oversight of partner agencies, resulting in unauthorized contract alterations and the deception of clients via fictitious contracts. Additionally, the BfDI issued a €30 million penalty attributed to security vulnerabilities in the MeinVodafone application and the associated customer hotline, which permitted unauthorized access to customer eSIM profiles.
Prof. Dr. Louisa Specht-Riemenschneider, the Federal Commissioner for Data Protection and Freedom of Information, emphasized the importance of imposing sanctions for data breaches while advocating for preventive measures. She acknowledged Vodafone’s cooperation throughout the investigative process, highlighting the company’s transparency regarding incriminating factors.
In response to these breaches, Vodafone has initiated significant updates to its internal processes and systems to reduce potential future risks. The company has overhauled its partner selection and auditing procedures and has severed relationships with entities implicated in fraudulent activities.
The sanctions have already been settled by Vodafone, which has additionally directed several million euros towards initiatives aimed at enhancing data protection, promoting media literacy, and combating cyberbullying, as noted by the BfDI.
Vodafone services a diverse base of over 330 million customers across 15 countries across Europe, Asia, Africa, and Oceania. Its financial technology services reach nearly 83 million customers in seven African nations.
As of now, a Vodafone representative has not provided a statement regarding the matter when approached for comment.
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