Skip to content
Blog
Customer Support
  • About Us
    • Meet KalioTek
    • Join Our Team
    • KalioTek Clients
    • MSP Frequently Asked Questions
    • MSP Buyer’s Guide
  • Industries
    • Artificial Intelligence
    • Life Sciences
    • Emerging Technology
  • Managed IT & Security

    Managed IT & Security

    You have a business to build. It’s time to get help with the things that are essential but not core so you can focus on what matters most. Get the right skills with the right capacity at the right time.

    Learn More

    Managed Security

    Customers, partners, and investors insist on proven security practices. Security is a never-ending journey, but implementing an effective baseline is not that hard and will dramatically reduce your risk.

    Learn More

    Compliance

    With proper planning, you can build compliance into your IT and security systems as you go, instead of as a separate initiative. KalioTek designs our managed services and project work with compliance in mind.

    Learn More

    Managed IT & Security

    Managed Security

    Compliance

    Get Started

    Managed IT & Security

    Co-Managed IT

    Lab IT

    Security Information & Event Management

  • Consulting
    • Solution Implementation
    • New Office IT Setup
    • Security Consulting
    • Okta SSO
    • Rapid IT & Security Assessment
  • Contact Us
  • About Us
    • Meet KalioTek
    • Join Our Team
    • KalioTek Clients
    • MSP Frequently Asked Questions
    • MSP Buyer’s Guide
  • Industries
    • Artificial Intelligence
    • Life Sciences
    • Emerging Technology
  • Managed IT & Security
    • Managed IT & Security
      • IT Planning
      • Onboarding & User Support
      • Managing Cloud Apps
      • Co-Managed IT
      • Mac Support
      • Lab IT
    • Managed Security
      • Managed Security
      • SIEM/SOC
      • Disaster Recovery
    • Compliance
  • Consulting
    • Solution Implementation
    • New Office IT Setup
    • Security Consulting
    • Okta SSO
    • Rapid IT & Security Assessment
  • Blog
  • Customer Support
  • Contact Us

Blog

Companies Held Responsible for Tech Security

Major Fines for IT Data Breaches

Outdated machines, software or employee practices can lead to major security problems. These big companies faced painful fines for their IT mistakes.

As companies increase their online activity, data collection and eCommerce, the stakes will continue to rise. Companies that are lax, poorly prepared or sloppy are facing disastrous tech breaches. Equifax, Uber, TJX and Visa are just a few of the companies that have had to face hefty payouts for data breaches. The public relies on companies to act professionally and secure their information. Many companies that face a security breach or lost data will not be able to stay in business.

With a security breach, the customer’s trust is lost. Not only will the reputation harm business, but fixing the issue will cost more than preventing it. Fines and payouts will also add to that cost. And, the more consumers affected by a major problem in the company’s security, the more painful the clean up. You can’t afford to slack when it comes to IT security.

Equifax Data Breach Settlement of $700 Million

The infamous Equifax data breach of 2017 has lead to 147 million affected customers. The settlement announced by the credit reporting company included $175 million to 48 states, $300 million towards free credit monitoring services for the impacted customers and $100 million to the Consumer Financial Protection Bureau for civil penalties.

Federal Trade Commission (FTC) Chairman Joe Simons said, “Equifax failed to take basic steps that may have prevented the breach that affected approximately 147 million consumers. This settlement requires that the company take steps to improve its data security going forward, and will ensure that consumers harmed by this breach can receive help protecting themselves from identity theft and fraud.”

Facebook Faces $5 Billion in Fines for Privacy Violations

The FTC smacked Facebook with a $5 billion fine for the Cambridge Analytica incident. This privacy violations fine was in response to personal data taken from over 87 million Facebook users to create more persuasive and personalized ads.

Uber Faces $148 Million in Fines for Covering Up Hacked Accounts

In 2016, Uber had over 57 million user accounts compromised–and then tried to cover it up by paying the perpetrator $100k. This lead to the largest data-breach payout at the time of $148 million because they broke data breach violation laws.

Anthem Faces $131 Million for Data Breach of Customers

When the US health insurer Anthem was hacked in 2015, over 79 million customers had their names, birthdates, social security numbers and medical IDs compromised. The company paid out $115 million in a class-action lawsuit in 2017 regarding the breach. The US Department of Health and Human Services fined them an additional $16 million for HIPAA (Health Insurance Portability and Accountability Act) violations.

TJX and Visa Pay Out $40.9 for Data Breach

When over 96 million credit and debit accounts were hacked in a widely-publicized data breach that lasted from 2003 to 2007, TJX promised pay outs. This came under the terms that 80% of card issuers agreed to the recovery offer and promised not to take further legal action. TJX agreed to fund the settlement as a resolution to those U.S. Visa holders with cards from taking further legal action. This amount was not part of the $256 million the company said it had budgeted to deal with the breach.

Texas Cancer Center Fined $4.3 Million for Unencrypted Equipment

Between 2012-2013, the University of Texas MD Anderson Cancer Center lost one unencrypted laptop when it was stolen from an employee’s house and two unencrypted USBs that contained sensitive patient data. The health information of over 33,500 individuals was compromised and the center faced a $4.3 million fine for HIPAA violations.

FMCNA Fined $3.5 Million for Five Data Breaches

In 2012, Fresenius Medical Care North America (FMCNA) was fined $3.5 million for HIPAA violations after five separate breaches in different company locations. The Office for Civil Rights noted that FMCNA could have avoided this with a thorough risk analysis to find the potential risks and vulnerabilities. Many of their breach problems included lacking security policies and failing to encrypt sensitive health data.

A good company will take proactive IT security measures with a great tech team. By outsourcing IT security through a managed IT service company, you can get the best security without hiring a team full-time. Your IT team will provide an audit of your company to help you find the places where your security, devices or practices might be a threat to your company. Ensure you are using the right equipment and your employees are trained to meet compliance standards, privacy laws, customer expectations and more so your company can succeed.

Let's Talk

Interested In:
Consent(Required)

KalioTek respects your data, to learn more, see our privacy policy.

Related Blogs

Outsourcing your SOC: The Right Decision for Mid-Market Companies

6 Vital IT Ops Capabilities for Emerging Companies

20 Years Of Real-World Experience

Security Certifications

4030 Moorpark Ave #210
San Jose, CA 95117

  • sales@kaliotek.com
  • 408.550.8007

About Us

  • Meet KalioTek
  • Join Our Team
  • KalioTek Clients
  • Customer Support
  • Blog
  • Contact Us

Industries

  • Artificial Intelligence
  • Life Sciences
  • Emerging Technology

Services

  • Managed IT & Security
  • Managed Security
  • Co-Managed IT
  • Compliance

Consulting

  • Solution Implementation
  • New Office IT Setup
  • Security Consulting
  • Okta SSO
  • Rapid IT & Security Assessment

Social Media

Facebook-f Linkedin-in

We Are Experts In

  • Co Managed IT Services
  • IT Services for Emerging Technology Companies
  • IT Consulting Services
  • IT Security Cloud Security Consulting Services
  • Managed IT Security Services
  • Cloud Security Consulting Services
  • Life Sciences IT Services
  • IT Services for Life Sciences
  • Managed IT Services Demo
  • Managed IT Support Company
  • Managed IT Services for Labs
  • Security Information and Event Management
  • Managed IT Security Services
  • Rapid IT Security Risk Assessment
© 2025 KalioTek. All Rights Reserved. | Privacy Policy | Terms of Use | Sitemap