Business
Privacy Failures Cost Tech Giants Billions: Biggest Penalties of 2024 Revealed
In 2024, regulators imposed hefty penalties on global giants like Meta, LinkedIn, and Uber for failing to protect user data. The EU and US governments took stricter measures to enforce data protection laws, with fines reaching billions of dollars.
The year 2024 saw a surge in penalties for companies failing to safeguard user data, with governments across the US and EU cracking down on privacy violations. From tech giants like Meta and LinkedIn to service providers like Uber and Marriott, businesses were held accountable for negligence in securing sensitive information.
Key Fines and Settlements:
- Meta – $1.4 Billion Fine for Biometric Data Violations
In the largest penalty of the year, Meta was fined $1.4 billion by the State of Texas for unlawfully capturing biometric data of millions of residents. The fine underscores the growing concern over the misuse of personal data in the US. - LinkedIn – $336 Million Fine for GDPR Violations
The Irish Data Protection Commission penalized LinkedIn for using third-party data without user consent, violating GDPR regulations. LinkedIn was found to have improperly processed personal data for targeted advertising purposes. - Uber – $324 Million Fine for Driver Data Mismanagement
Uber faced heavy fines in the Netherlands for failing to secure driver data, including personal identification and financial details, which were transferred to US servers without adequate safeguards. - Meta – $102 Million Fine for Password Mishandling
Ireland’s data protection authority fined Meta again for storing user passwords in plaintext, a major cybersecurity lapse that could have allowed unauthorized access to accounts. - Marriott – $52 Million Settlement for Data Breach
Marriott paid $52 million to settle claims from all 50 US states after a multi-year data breach exposed sensitive information of 131.5 million guests. The breach highlighted long-standing vulnerabilities in the hotel chain’s systems. - Lehigh Valley Health Network – $65 Million Settlement for Healthcare Data Breach
Hackers gained access to patient data, including sensitive medical records and photos. This case marked one of the largest healthcare data breach settlements on a per-patient basis. - 23andMe – $30 Million Settlement for Genetic Data Leak
A breach in 2023 exposed sensitive genetic data of over six million individuals. In 2024, 23andMe agreed to a $30 million settlement, emphasizing the risks of cyberattacks on biotech firms. - T-Mobile – $15.75 Million for Multiple Breaches
T-Mobile settled with the FCC for a series of data breaches from 2021 to 2023, which exposed customer Social Security numbers and proprietary information. - AT&T – $13 Million for Cloud Data Breach
The FCC fined AT&T after customer data from a cloud vendor was leaked. The settlement included commitments to improve data governance practices. - New York – $11.3 Million Settlement with Insurance Firms
New York penalized two insurance companies for a breach affecting over 120,000 residents. Stolen driver’s license data was misused for fraudulent unemployment claims during the COVID-19 pandemic.
The fines and settlements of 2024 reflect a growing emphasis on data protection and privacy, sending a clear message to businesses about the importance of robust cybersecurity measures. As governments tighten regulations, companies must adapt or risk facing severe financial and reputational damage.