CBP is conducting warrantless phone searches of up to 10,000 Americans annually and storing details in a government database.

Public records and reporting has revealed that federal agencies have spent millions of dollars on contracts with massive data brokers.

The issue has long been a concern for civil liberties groups and press advocates.

Privacy advocates are denouncing the ruling.

As federal agencies increasingly draw on biometric data for their work, the stakes for protecting that data from hackers have grown.

The punishment could last for years if Perceptics is placed on a government blacklist.