{"id":37945,"date":"2020-10-30T19:58:44","date_gmt":"2020-10-30T19:58:44","guid":{"rendered":"https:\/\/packetstormsecurity.com\/news\/view\/31714\/Marriott-Gets-Data-Breach-Fine-Lowered-To-23.8-Million.html"},"modified":"2020-10-30T19:58:44","modified_gmt":"2020-10-30T19:58:44","slug":"marriott-gets-data-breach-fine-lowered-to-23-8-million","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/marriott-gets-data-breach-fine-lowered-to-23-8-million\/","title":{"rendered":"Marriott Gets Data Breach Fine Lowered To $23.8 Million"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/techcrunch.com\/wp-content\/uploads\/2019\/02\/GettyImages-94847899.jpg?w=602\" class=\"ff-og-image-inserted\"><\/div>\n<p id=\"speakable-summary\">The U.K.\u2019s ICO has reduced the size of a data breach penalty for hotel business Marriott \u2014 dropping it to \u00a314.4 million (~$23.8 million) in a <a href=\"https:\/\/ico.org.uk\/about-the-ico\/news-and-events\/news-and-blogs\/2020\/10\/ico-fines-marriott-international-inc-184million-for-failing-to-keep-customers-personal-data-secure\/?utm_source=twitter&amp;utm_medium=iconews&amp;utm_term=190d3f65-917a-4355-b766-abe4812b048d&amp;utm_content=&amp;utm_campaign=\">final penalty notice<\/a>, down from the \u00a399 million ($123 million) figure that the watchdog initially said it would levy in <a href=\"https:\/\/techcrunch.com\/2019\/07\/09\/marriott-data-breach-uk-fine\/\">July 2019<\/a>.<\/p>\n<p>The fine relates to a data breach suffered by the hotel giant that dates back to 2014 (involving the network of Starwood hotels, which it had acquired in 2015) \u2014 but which wasn\u2019t discovered until November 2018.<\/p>\n<p>The personal data involved in the breach differed between individuals but the ICO said it may have included names, email addresses, phone numbers, unencrypted passport numbers, arrival\/departure information, guests\u2019 VIP status and loyalty programme membership numbers.<\/p>\n<p>Globally, some 339 million guest records were affected but fewer individuals are thought to have been compromised owing to some of the records being duplicates. The breach is thought to have affected around 30 million users across the EU, per an earlier ICO estimate.<\/p>\n<p>Its investigation found there were failures by Marriott to put \u201cappropriate technical or organisational measures in place to protect people\u2019s data\u201d \u2014 as required by the pan-EU General Data Protection Regulation (<a class=\"crunchbase-link\" href=\"https:\/\/crunchbase.com\/organization\/gdpr\" target=\"_blank\" data-type=\"organization\" data-entity=\"gdpr\" rel=\"noopener noreferrer\">GDPR) <span class=\"crunchbase-tooltip-indicator\"><\/span><\/a>. (The penalty only covers the portion of the breach that dates from 25 May 2018 \u2014 when the GDPR came into effect.)<\/p>\n<p>Commenting in a statement, the U.K.\u2019s information commissioner Elizabeth Denham said: \u201cMillions of people\u2019s data was affected by Marriott\u2019s failure; thousands contacted a helpline and others may have had to take action to protect their personal data because the company they trusted it with had not. When a business fails to look after customers\u2019 data, the impact is not just a possible fine, what matters most is the public whose data they had a duty to protect.\u201d<\/p>\n<p>A Marriott spokesperson told us the company \u201cdeeply regrets\u201d the incident, adding in a statement: \u201cMarriott remains committed to the privacy and security of its guests\u2019 information and continues to make significant investments in security measures for its systems. The ICO recognises the steps taken by Marriott following discovery of the incident to promptly inform and protect the interests of its guests.\u201d<\/p>\n<p>The hotel giant also confirmed it does not intend to appeal the ICO\u2019s decision (while not making any admission of liability).<\/p>\n<p>The penalty had to be signed off by other EU data protection authorities, under the GDPR\u2019s one-stop-shop mechanism for cross-border cases. And the ICO confirmed it completed the Article 60 process prior to the issuing of the penalty.<\/p>\n<h2>Going down<\/h2>\n<p>One interesting element here is the difference between the initial penalty proposed by the ICO and the final fine.<\/p>\n<p>The GDPR framework greatly increased the potential size of penalties for data breaches, up to a maximum of \u00a320 million or 4% of an entity\u2019s global annual turnover (whichever is greater). Prior to that, data protection rules existed in the region but could be easily ignored, given puny penalties. The GDPR was supposed to change that.<\/p>\n<p>However, almost 2.5 years since the framework begun being applied, large fines remain rare \u2014 with a <a href=\"https:\/\/techcrunch.com\/2020\/02\/19\/lack-of-big-tech-gdpr-decisions-looms-large-in-eu-watchdogs-annual-report\/\">backlog of major cross-border cases still awaiting decisions<\/a>.<\/p>\n<p>Regulations may also be concerned about being able to make large sums stick if companies appeal.<\/p>\n<p>The ICO\u2019s initial penalty for the Marriott breach would have been one of the largest fines issued under the GDPR. Today\u2019s haircut revises that. The first figure proposed represented around 3% of the company\u2019s 2018 revenue (circa $3.6 billion) \u2014 but that\u2019s now shrunk to around 0.6%.<\/p>\n<p>It follows a very similar episode at the ICO over a BA data breach. In <a href=\"https:\/\/techcrunch.com\/2019\/07\/08\/uks-ico-fines-british-airways-a-record-183m-over-gdpr-breach-that-leaked-data-from-500000-users\/\">July 2019<\/a> the regulator said it intended to fine the airliner \u00a3183.39 million ($230 million) for a <a href=\"https:\/\/techcrunch.com\/2018\/09\/06\/british-airways-customer-data-stolen-in-data-breach\/\">2018 data breach <\/a>that affected some 500,000 customers. But <a href=\"https:\/\/techcrunch.com\/2020\/10\/16\/uks-ico-downgrades-british-airways-data-breach-fine-to-20m-after-originally-setting-it-at-184m\/\">earlier this month<\/a> it issued a final penalty to BA of just \u00a320 million ($25.8 million).<\/p>\n<p>In both cases the impact of the coronavirus appears to be playing some part in explaining why the ICO has reduced the size of the penalties. Although the pandemic might be something of a useful scapegoat, given the substantial size of the reductions involved. (The regulator has also used it to <a href=\"https:\/\/techcrunch.com\/2020\/05\/07\/adtech-scores-a-pandemic-pause-from-uk-privacy-oversight\/\">\u201cpause\u201d any action over major adtech complaints<\/a>, for example.)<\/p>\n<p>All the ICO has to say vis-\u00e0-vis Marriott\u2019s penalty haircut is that it \u201cconsidered representations from Marriott, the steps Marriott took to mitigate the effects of the incident and the economic impact of COVID-19 on their business before setting a final penalty\u201d.<\/p>\n<p>On the reduction in the size of the penalty Marriott told us it reflects \u201cextensive mitigating measures\u201d it put in place following the security incident \u2014 noting that it established a dedicated website to provide information to concerned guests; opened a dedicated helpline; and sent \u201cmillions\u201d of email notifications to individuals whose information was involved in the breach. It also said it offered guests the opportunity to sign up for a personal information monitoring service where it was available.<\/p>\n<p>The ICO similarly took representations from BA after issuing its initial intention to fine \u2014 and ended up making a small discount as a result, per our <a href=\"https:\/\/techcrunch.com\/2020\/10\/16\/uks-ico-downgrades-british-airways-data-breach-fine-to-20m-after-originally-setting-it-at-184m\/\">report<\/a>, though we reported that the lion\u2019s share of the BA reduction was due to revising how much blame it had placed on the airline for the breach.<\/p>\n<p>Asked for a view on the ICO\u2019s penalty haircuts, <a href=\"https:\/\/twitter.com\/tim2040\">Tim Turner<\/a>, a U.K.-based data protection trainer and consultant, agreed that the coronavirus looks like a handy scapegoat.<\/p>\n<p>\u201cI\u2019m not accusing the ICO of feeding misunderstanding but the impression that these reduced fines are down to the pandemic is very helpful to them,\u201d he told TechCrunch. \u201cThey plainly miscalculated both the BA and Marriott fines by a huge margin, and they don\u2019t really deny it. The notices just skate over that on the basis that the original mistake has been rectified so it doesn\u2019t matter.<\/p>\n<p>\u201cThe ICO were proposing fines way beyond anything in the EU on the basis of a draft, unpublished procedure. They ought to account for that rather than letting everyone think this is a big COVID-19 discount.\u201d<\/p>\n<p> READ MORE <a href=\"https:\/\/packetstormsecurity.com\/news\/view\/31714\/Marriott-Gets-Data-Breach-Fine-Lowered-To-23.8-Million.html\">HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>READ MORE HERE&#8230;<\/p>\n","protected":false},"author":2,"featured_media":37946,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[277],"tags":[8755],"class_list":["post-37945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cybersecurity-blogs","tag-headlinehackergovernmentprivacydata-loss"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Marriott Gets Data Breach Fine Lowered To $23.8 Million 2026 | ThreatsHub 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