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Home > Cybersecurity > 1&1 was hit with 9.8 million euros in fines over GDPR violations

1&1 was hit with 9.8 million euros in fines over GDPR violations

German web hosting company 1&1 was hit with 9.8 million euros in fines over GDPR violations by the Federal Data Protection Commissioner.

Erdem Yasar by Erdem Yasar
December 11, 2019
in Cybersecurity
2 min read
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1&1 was hit with 9.8 million euros in fines over GDPR violations
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The Federal Data Protection Authority found a violation of Article 32 of the GDPR and fined 1&1 9.8 million euros. Violation is caused by the phone authentication mechanism. Only names and birthdates were required to change account information for customers. The FDPA also stated that the phone authentication methods of all major webs services and telecom providers in Germany will be investigated.

1&1: Absolutely disproportionate

1&1 has filed a lawsuit against the DPA. The company claims that the amount is absolutely disproportionate. 1&1 states:

The 1 & 1 Telecom GmbH will not accept the fines decision issued against it by the Federal Commissioner for Data Protection and Freedom of Information (Federal Data Protection Commissioner) and sue. The Federal Data Protection Commissioner has imposed a fine of 9.55 million euros for an individual case. The authority accuses 1 & 1 of having failed to comply with technical and organizational measures to protect personal data through non-compliant telephone authentication.

This procedure was not about the general protection of data stored in 1 & 1, but about how customers can access their contract information. The case in question already occurred in 2018. Specifically, it was about the telephone query of the mobile number of a former partner. The responsible employee fulfilled all the requirements of the then valid 1 & 1 security guidelines. At that time, two-factor authentication was common and there was no single market standard for higher security requirements.

Conclusion

This issue once again shows us the importance of penetration tests. We all know tech giants spending huge amounts of money on penetration tests to evaluate their safeguards. But it seems like most penetration testers are focusing mainly on software and network security.

The problems similar to this one underline the importance of testing the authentication methods, social engineering aspects and even the physical location and accessibility of the devices, such as servers. Web hosting companies should rule out any possibilities of GDPR violations during the penetration tests and even ask the penetration testers to create and evaluate unusual situations to improve their methods and employees.

See more Cyber Security News


Tags: GDPRIONOS by 1&1Law
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Erdem Yasar

Erdem Yasar

Erdem Yasar is a news editor at Cloud7 News. Erdem started his career by writing video game reviews in 2007 for PC World magazine while he was studying computer engineering. In the following years, he focused on software development with various programming languages. After his graduation, he continued to work as an editor for several major tech-related websites and magazines. During the 2010s, Erdem Yasar shifted his focus to cloud computing, hosting, and data centers as they were becoming more popular topics in the tech industry. Erdem Yasar also worked with various industry-leading tech companies as a content creator by writing blog posts and other articles. Prior to his role at Cloud7 News, Erdem was the managing editor of T3 Magazine.

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