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

  • Achieving Clear Audio

    In today’s ever-changing world of security and risk management, effective communication via an intercom and door entry communication system is a critical communication tool to keep a facility’s staff, visitors and vendors safe. Read Now

  • Beyond Apps: Access Control for Today’s Residents

    The modern resident lives in an app-saturated world. From banking to grocery delivery, fitness tracking to ridesharing, nearly every service demands another download. But when it comes to accessing the place you live, most people do not want to clutter their phone with yet another app, especially if its only purpose is to open a door. Read Now

  • Survey: 48 Percent of Worshippers Feel Less Safe Attending In-Person Services

    Almost half (48%) of those who attend religious services say they feel less safe attending in-person due to rising acts of violence at places of worship. In fact, 39% report these safety concerns have led them to change how often they attend in-person services, according to new research from Verkada conducted online by The Harris Poll among 1,123 U.S. adults who attend a religious service or event at least once a month. Read Now

  • AI Used as Part of Sophisticated Espionage Campaign

    A cybersecurity inflection point has been reached in which AI models has become genuinely useful in cybersecurity operation. But to no surprise, they can used for both good works and ill will. Systemic evaluations show cyber capabilities double in six months, and they have been tracking real-world cyberattacks showing how malicious actors were using AI capabilities. These capabilities were predicted and are expected to evolve, but what stood out for researchers was how quickly they have done so, at scale. Read Now

  • Why the Future of Video Security Is Happening Outside the Cloud

    For years, the cloud has captivated the physical security industry. And for good reasons. Remote access, elastic scalability and simplified maintenance reshaped how we think about deploying and managing systems. Read Now

New Products

  • ResponderLink

    ResponderLink

    Shooter Detection Systems (SDS), an Alarm.com company and a global leader in gunshot detection solutions, has introduced ResponderLink, a groundbreaking new 911 notification service for gunshot events. ResponderLink completes the circle from detection to 911 notification to first responder awareness, giving law enforcement enhanced situational intelligence they urgently need to save lives. Integrating SDS’s proven gunshot detection system with Noonlight’s SendPolice platform, ResponderLink is the first solution to automatically deliver real-time gunshot detection data to 911 call centers and first responders. When shots are detected, the 911 dispatching center, also known as the Public Safety Answering Point or PSAP, is contacted based on the gunfire location, enabling faster initiation of life-saving emergency protocols.

  • 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.

  • PE80 Series

    PE80 Series by SARGENT / ED4000/PED5000 Series by Corbin Russwin

    ASSA ABLOY, a global leader in access solutions, has announced the launch of two next generation exit devices from long-standing leaders in the premium exit device market: the PE80 Series by SARGENT and the PED4000/PED5000 Series by Corbin Russwin. These new exit devices boast industry-first features that are specifically designed to provide enhanced safety, security and convenience, setting new standards for exit solutions. The SARGENT PE80 and Corbin Russwin PED4000/PED5000 Series exit devices are engineered to meet the ever-evolving needs of modern buildings. Featuring the high strength, security and durability that ASSA ABLOY is known for, the new exit devices deliver several innovative, industry-first features in addition to elegant design finishes for every opening.