British Airways plane

British Airways Hit With Record $229 Million Fine After 2018 Hack

The airline, along with Mariott International, is facing harsher penalties for not properly protecting customers’ personal data prior to cyberattacks.

British Airways, the second largest airline in the United Kingdom, could have to pay a record fine of over 183 million pounds, or about $229 million, for a hack that exposed the private data of hundreds of thousands of customers. The penalty is the largest ever issued by the Information Commissioner’s Office, the British agency tasked with protecting citizens’ data privacy.

An investigation conducted by the ICO found that the airline’s lack of security measures allowed for hackers to “harvest” personal data of 500,000 customers for several months in the summer of 2018. The incident involved diverting customers from the British Airways website to a fraudulent site where users entered their names, email addresses, travel details and credit card information.

Since the attack, the company has made improvements to its security operation and cooperated with the investigation, according to the ICO.

“People’s personal data is just that – personal,” ICO commissioner Elizabeth Denham said in a Monday statement. “When an organisation fails to protect it from loss, damage or theft it is more than an inconvenience. That’s why the law is clear – when you are entrusted with personal data you must look after it.”

She added: “Those that don't will face scrutiny from my office to check they have taken appropriate steps to protect fundamental privacy rights."

The announcement came in the wake of new regulations in the U.K., introduced last year, that make it mandatory for companies to report security breaches to the ICO. The changes to the General Data Protection Regulation (GDPR) also increased the maximum penalty to 4 percent of the corporation’s turnover, or yearly net sales. While the fine on British Airways was the largest ever levied by the agency, it was only about 1.5 percent of the airline’s turnover in 2017, according to the BBC.

“If there was any doubt that regulators would enforce GDPR, the ICO’s decision to hand down an unprecedented, if unexpectedly, stiff penalty will surely put that to rest and leave all companies under GDPR anxious about data security and privacy,” said Alex Calic, the strategic technology partnerships officer for The Media Trust.

It doesn’t look like the regulator is slowing down anytime soon. On Tuesday, the ICO announced its intention to fine Mariott International over 99 million pounds, or $124 million, for a data breach that led to the exposure of 339 million sensitive guest records, 30 million of which were related to European residents.

The ICO investigators concluded that Mariott failed to undertake “sufficient due diligence” when it bought Starwood, a group of hotels that had its reservation database hacked in 2014, eventually exposing the data of over 500 million guests. The attack was only discovered and reported to the regulator in November.

Tim Erlin, the vice president of product management and strategy at cybersecurity company Tripwire, said the regulations “walk a fine line” between improving security and blaming the victim of criminal activity.

“In order for GDPR to remain effective, the supervisory authorities have to levy fines appropriately, and specifically in cases where clear negligence was present,” Erlin said. “It’s fair to expect organizations to safeguard sensitive data, but even an organization delivering above average protection can fall victim to a sophisticated attacker. Very simply, cybersecurity isn’t a solved problem.”

Both companies will have the opportunity to argue for a reduction in the fine before the ICO makes its final decision. Regardless of the outcome, security experts say the severity of the British Airways penalty should be a wake-up call to companies about the importance of data security.

“The message is clear,” Calic said. “If you collect consumer data, you’d better make sure it’s safe and know who has access to it.”

Featured

  • Gaining a Competitive Edge

    Ask most companies about their future technology plans and the answers will most likely include AI. Then ask how they plan to deploy it, and that is where the responses may start to vary. Every company has unique surveillance requirements that are based on market focus, scale, scope, risk tolerance, geographic area and, of course, budget. Those factors all play a role in deciding how to configure a surveillance system, and how to effectively implement technologies like AI. Read Now

  • 6 Ways Security Awareness Training Empowers Human Risk Management

    Organizations are realizing that their greatest vulnerability often comes from within – their own people. Human error remains a significant factor in cybersecurity breaches, making it imperative for organizations to address human risk effectively. As a result, security awareness training (SAT) has emerged as a cornerstone in this endeavor because it offers a multifaceted approach to managing human risk. Read Now

  • The Stage is Set

    The security industry spans the entire globe, with manufacturers, developers and suppliers on every continent (well, almost—sorry, Antarctica). That means when regulations pop up in one area, they often have a ripple effect that impacts the entire supply chain. Recent data privacy regulations like GDPR in Europe and CPRA in California made waves when they first went into effect, forcing businesses to change the way they approach data collection and storage to continue operating in those markets. Even highly specific regulations like the U.S.’s National Defense Authorization Act (NDAA) can have international reverberations – and this growing volume of legislation has continued to affect global supply chains in a variety of different ways. Read Now

  • Access Control Technology

    As we move swiftly toward the end of 2024, the security industry is looking at the trends in play, what might be on the horizon, and how they will impact business opportunities and projections. Read Now

Featured Cybersecurity

Webinars

New Products

  • Compact IP Video Intercom

    Viking’s X-205 Series of intercoms provide HD IP video and two-way voice communication - all wrapped up in an attractive compact chassis. 3

  • A8V MIND

    A8V MIND

    Hexagon’s Geosystems presents a portable version of its Accur8vision detection system. A rugged all-in-one solution, the A8V MIND (Mobile Intrusion Detection) is designed to provide flexible protection of critical outdoor infrastructure and objects. Hexagon’s Accur8vision is a volumetric detection system that employs LiDAR technology to safeguard entire areas. Whenever it detects movement in a specified zone, it automatically differentiates a threat from a nonthreat, and immediately notifies security staff if necessary. Person detection is carried out within a radius of 80 meters from this device. Connected remotely via a portable computer device, it enables remote surveillance and does not depend on security staff patrolling the area. 3

  • Camden CV-7600 High Security Card Readers

    Camden CV-7600 High Security Card Readers

    Camden Door Controls has relaunched its CV-7600 card readers in response to growing market demand for a more secure alternative to standard proximity credentials that can be easily cloned. CV-7600 readers support MIFARE DESFire EV1 & EV2 encryption technology credentials, making them virtually clone-proof and highly secure. 3