Random telegraph noise (RTN) measurements are typically carried out at the device level using standard probe station based electrical characterization setup, where the measured current represents a cumulative effect of the simultaneous response of electron capture/emission events at multiple oxygen vacancy defect (trap) sites. To better characterize the individual defects in the high-κ dielectric thin film, we propose and demonstrate here the measurement and analysis of RTN at the nanoscale using a room temperature scanning tunneling microscope setup, with an effective area of interaction of the probe tip that is as small as 10 nm in diameter. Two-level and multi-level RTN signals due to single and multiple defect locations (possibly dispersed in space and energy) are observed on 4 nm HfO2 thin films deposited on n-Si (100) substrate. The RTN signals are statistically analyzed using the Factorial Hidden Markov Model technique to decode the noise contribution of more than one defect (if any) and estimate the statistical parameters of each RTN signal (i.e., amplitude of fluctuation, capture and emission time constants). Observation of RTN at the nanoscale presents a new opportunity for studies on defect chemistry, single-defect kinetics and their stochastics in thin film dielectric materials. This method allows us to characterize the fast traps with time constants ranging in the millisecond to tens of seconds range. © 2016 AIP Publishing LLC.