Meta, the parent company of Facebook and Instagram, has been hit with a significant €91 million (£79 million) fine by Ireland’s Data Protection Commission (DPC) after an investigation revealed serious lapses in the company’s handling of user data. The fine stems from Meta’s failure to properly encrypt millions of user passwords, which were stored in plaintext on internal servers.

The Breach and Investigation

The security mishap, which dates back to 2019, was uncovered when Meta discovered that passwords for both Facebook and Instagram users had been improperly stored without encryption, leaving them vulnerable to internal access. While Meta initially reported the issue to the DPC in early 2019, further investigation revealed that these passwords had been stored in plaintext as far back as 2012. These credentials were potentially accessible to over 20,000 Meta employees, though the company has clarified that no external breaches occurred.

GDPR Violations

The Irish regulator found Meta in violation of several General Data Protection Regulation (GDPR) principles. Specifically, Meta failed to:

• Notify the DPC in a timely manner about the breach.
• Properly document the incident.
• Implement appropriate technical measures to secure user data from unauthorised access.

According to Deputy Commissioner Graham Doyle, passwords are highly sensitive pieces of data, as they provide access to users’ social media accounts, and storing them in plaintext is a fundamental breach of security practices.

Meta’s Response

Meta acknowledged the error in 2019 and took corrective action by securing the affected passwords. The company has since upgraded its security infrastructure, ensuring that passwords are now encrypted. However, the DPC’s ruling highlights the importance of proper data handling practices, particularly for companies managing vast amounts of sensitive information.

Industry Impact

This hefty fine marks another significant penalty for Meta, which has faced increasing scrutiny in recent years over its data privacy practices. The incident serves as a reminder to all businesses of the critical importance of complying with GDPR standards and implementing robust cybersecurity protocols to protect user data. Given Meta’s influence and size, the penalty is seen as part of a broader effort by European regulators to hold tech giants accountable for lapses in user privacy.

What’s Next for Meta?

In addition to the fine, the DPC issued a reprimand to Meta, although further details on what this entails are yet to be disclosed. Meta, which has been fined several times for other data privacy breaches, is likely to face ongoing regulatory challenges as the European Union continues to tighten oversight of data protection laws​.