FCC warns telecom firms to protect data.

• Position: PRIVACY - Federal Communications Commission - Brief article

The Federal Communications Commission (FCC) wants to fine hundreds of small telecommunications providers more than $13 million for not following new rules designed to protect customer phone data.

Federal regulators have proposed $20,000 fines for more than 650 small phone, pager, and wireless providers, accusing them of not filing paperwork proving that they are actively protecting customer records, The Wall Street Journal reported.

In April 2007, the FCC responded to consumer complaints about data brokers selling their personal information by requiring phone companies to follow strict new privacy rules.

As part of those requirements meant to increase phone record security, telecom companies must require customers to provide a password before they can provide account information over the phone or online. The FCC also...