Experian, T-Mobile and third party security risk

T-Mobile’s security woes at the hands of Experian show trust cannot be outsourced

suspicious man watching for an interent scam

Another day, another corporate security breach (or six). This time telco T-Mobile has revealed up to 15 million customers’ data has been compromised.

Notable in this story is that T-Mobile are firmly putting the blame on credit monitoring company Experian.

For both companies this is extremely embarrassing with T-Mobile stating, “our vendors are contractually obligated to abide by stringent privacy and security practices, and we are extremely disappointed that hackers could access the Experian network.”

T-Mobile, like most telcos, sees a major opportunity in being a trusted provider of security services and this setback hurts them in a key market.

Experian on the other hand have shown their slack attitude to user data previously, having been caught selling consumer details to identity thieves.

That a company in such a privileged position as Experian can be constantly caught this way will almost certainly increase the push to see penalties for corporate data breaches start to get real teeth and the United States’ cavalier attitude to public privacy and online security will take another dent.

For T-Mobile and most other companies, the lesson is start and clear. Trust starts with your own contractors and business partners, it cannot be outsourced.

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Author: Paul Wallbank

Paul Wallbank is a speaker and writer charting how technology is changing society and business. Paul has four regular technology advice radio programs on ABC, a weekly column on the smartcompany.com.au website and has published seven books.

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