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AT&T Shells Out $13 Million in FCC Settlement for Shocking 2023 Data Breach

AT&T has paid a $1.3 million settlement to the Federal Communications Commission (FCC) following a 2023 data breach that exposed customers’ personal information. The breach resulted from unauthorized access to user accounts by AT&T’s third-party vendor, which sold customer information to third-party call centers.

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The AT&T logo is set against a vibrant background of pink and blue digital light patterns, symbolizing its resilience post-FCC settlement.

The Federal Communications Commission (FCC) has reached a $13 million settlement with AT&T to resolve a probe into whether the telecom giant failed to protect customer data after a vendor’s cloud environment was breached three years ago.

The FCC’s investigation also examined AT&T’s supply chain integrity and whether the telecom giant engaged in poor privacy and cybersecurity practices.

The massive data breach investigated by the FCC occurred in January 2023, when threat actors accessed customer data of roughly 9 million AT&T wireless accounts stored by a vendor contracted to generate personalized video content, including billing and marketing videos.

“Customer Proprietary Network Information from some wireless accounts was exposed, such as the number of lines on an account or wireless rate plan,” AT&T told us at the time.

“The information did not contain credit card information, Social Security Number, account passwords or other sensitive personal information. We are notifying affected customers.”

The CPNI data exposed in the January 2023 breach included customer first names, wireless account numbers, phone numbers, and email addresses.

Even though the vendor was required to destroy or return the data after the contract ended—years before the breach—it failed to do so. AT&T was found to have inadequately monitored the vendor’s compliance with their contractual obligations.

“Carriers must take additional precautions given their access to sensitive information, and we will remain vigilant in ensuring that’s the case no matter which provider a customer chooses.”

AT&T agrees to boost customer data protection

To settle the investigation, AT&T has also agreed to strengthen its data governance practices to protect its consumers’ sensitive data against similar vendor data breaches in the future.

The consent decree mandates AT&T to implement a comprehensive Information Security Program that includes broad customer data protection, improve its data inventory processes to track data shared with vendors, ensure that vendors follow retention and disposal rules for customer information (to limit the amount of customer data vulnerable to date breaches), and conduct annual compliance audits to assess AT&T’s compliance with these requirements.

“The Communications Act makes clear that carriers have a duty to protect the privacy and security of consumer data, and that responsibility takes on new meaning for digital age data breaches,” said FCC Chairwoman Jessica Rosenworcel.

“Carriers must take additional precautions given their access to sensitive information, and we will remain vigilant in ensuring that’s the case no matter which provider a customer chooses.”

Enforcement Bureau Chief Loyaan A. Egal also underscored the significance of the case, noting that “Communications service providers have an obligation to reduce the attack surface and entry points that threat actors seek to exploit in order to access sensitive customer data.”

“Protecting our customers’ data remains one of our top priorities. A vendor we previously used experienced a security incident last year that exposed data pertaining to some of our wireless customers,” an AT&T spokesperson told us after publishing time.

“Though our systems were not compromised in this incident, we’re making enhancements to how we manage customer information internally, as well as implementing new requirements on our vendors’ data management practices.

“Consistent with FCC requirements, we began notifying customers of this incident in March 2023. The data included information like the number of lines on an account. It did not contain credit card information, Social Security Numbers, account passwords or other sensitive personal information.”

In July 2024, AT&T warned of another massive data breach after threat actors stole the call logs for roughly 109 million customers (nearly all of its mobile customers) from an online database on the company’s Snowflake account between April 14 and April 25, 2024.

The exposed data contained phone numbers, call durations, communications metadata, and number of calls or texts. However, AT&T said the attackers couldn’t access the content of the calls or texts, customer names, or any other personal information like Social Security numbers or dates of birth.

In April, the company also notified 51 million former and current customers of a data breach linked to a massive amount of AT&T customer data leaked in March on the Breached hacking forum and previously offered for sale for $1 million in 2021.

Update September 17, 14:54 EDT: Added AT&T statement.

A Call to Arms for Data Security Enthusiasts

As we continue to witness breaches and vulnerabilities, it becomes increasingly essential for individuals and businesses to prioritize cybersecurity. We invite you to join us in our mission to empower users with the knowledge and tools they need to protect their data and privacy. Don’t hesitate to get in touch with us, and keep coming back to learn more about the ever-evolving landscape of cybersecurity.

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Malware

HIBP Alerts 57 Million Users About Hot Topic Data Breach: Protect Your Privacy Now

Have I Been Pwned (HIBP) has notified 57 million people about a Hot Topic data breach. The breach, which occurred in February, exposed emails and passwords. Users are advised to change their passwords for any accounts linked to the exposed email addresses, especially if they use the same password for multiple accounts.

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Storefront of Hot Topic, showcasing promotional signs for discounts and a "Get $15 Hot Cash" offer. Inside, various items are displayed, reminding savvy shoppers to keep privacy in mind amidst recent data breach news.

I need to talk to you about a massive data breach that has potentially exposed the personal information of 56,904,909 accounts for customers of Hot Topic, Box Lunch, and Torrid. That’s right – we’re talking about the popular American retail chain known for its counterculture-related clothing, accessories, and licensed music merchandise. With over 640 stores in the U.S. and Canada, Hot Topic has a vast customer base, and you might just be one of them.

Exposed Data: What’s at Risk?

Have I Been Pwned (HIBP) reports that the exposed data includes full names, email addresses, dates of birth, phone numbers, physical addresses, purchase history, and partial credit card data for Hot Topic, Box Lunch, and Torrid customers. This is a treasure trove of personal information that could be exploited by cybercriminals.

Who’s Behind the Breach?

The security incident was originally claimed on BreachForums by a threat actor named “Satanic” on October 21, 2024. This nefarious individual claimed to have stolen a whopping 350 million user records from Hot Topic and its related brands. To make matters worse, “Satanic” attempted to sell the database for $20,000 while also demanding a ransom payment of $100,000 from Hot Topic to remove the listing from the forums.

How Did This Happen?

While Hot Topic has remained silent on the issue, a report from HudsonRock published on October 23 suggested that the breach may have originated from an information stealer malware infection. This malicious software stole credentials for a data unification service used by Hot Topic, thus allowing access to the massive trove of customer data.

What Does This Mean for You?

Although the situation is still unfolding, data analytics firm Atlas Privacy reported last week that the 730GB database actually impacts 54 million customers. Furthermore, Atlas clarified that the dataset contains 25 million credit card numbers encrypted with a weak cipher – which, unfortunately, is easy to break using modern computers.

While Atlas cannot confirm with 100% certainty that the database belongs to Hot Topic, they did note that nearly half of all email addresses in the dataset have not been seen in previous breaches. This further supports the legitimacy of the threat actor’s claims.

What Can You Do?

First and foremost, check if your email address or phone number is exposed in the data leak by visiting this site set up by Atlas. If you discover that your information has been compromised, stay vigilant for phishing attacks, monitor your financial accounts closely for suspicious activity, and change your passwords on every platform where you use the same credentials.

We’ve reached out to Hot Topic requesting a comment, but have not heard back as of publication time. In the meantime, it’s crucial for you to take action to protect your personal information and stay informed on the latest developments.

Stay Informed and Stay Safe

As always, we’re here to keep you informed and help you navigate the complex world of cybersecurity. Be sure to come back for the latest updates on this story and other important security news. And if you have any concerns or questions, don’t hesitate to reach out to us. We’re here to help you stay safe in the digital world.

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Malware

Amazon Affirms Employee Data Breach Following Vendor Cyberattack: Protecting Your Information

Amazon has confirmed an employee data breach following a vendor hack. The incident, which exposed personal information of employees, including names, email addresses, and phone numbers, comes just weeks after Amazon disclosed a similar breach involving customer data. Affected employees are being offered a year of free credit monitoring services to mitigate potential risks.

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The Amazon logo adorns a dark wooden wall, creating a refined backdrop for the reception desk in the foreground.

Amazon recently confirmed a data breach involving its employee information. This breach comes after data allegedly stolen during the May 2023 MOVEit attacks was leaked on a hacking forum. The hacker behind this data leak, known as Nam3L3ss, shared over 2.8 million lines of Amazon employee data, including names, contact information, building locations, email addresses, and more.

Amazon spokesperson Adam Montgomery confirmed Nam3L3ss’ claims, adding that this data was stolen from systems belonging to a third-party service provider.

“Amazon and AWS systems remain secure, and we have not experienced a security event. We were notified about a security event at one of our property management vendors that impacted several of its customers including Amazon,” Montgomery said.

“The only Amazon information involved was employee work contact information, for example work email addresses, desk phone numbers, and building locations.”

The company said the breached vendor only had access to employee contact information, and the attackers didn’t access or steal sensitive employee information like Social Security numbers, government identification, or financial information. Amazon added that the vendor has since patched the security vulnerability used in the attack.

Other Companies Affected

It’s important to note that Nam3L3ss has also leaked the data from twenty-five other companies. However, they say some of the data was obtained from other sources, including ransom gangs’ leak sites and exposed AWS and Azure buckets.

“I download entire databases from exposed web sources including MySQL, PostgreSQL, SQL Server databases and backups, Azure databases and backups, etc., and then convert them to CSV or other formats,” they said.

“DO NOT ask me for access to my storage, etc. At present, I have well over 250TB of archived database files, etc.”

Some of the other companies whose data was stolen in MOVEit attacks or harvested from Internet-exposed resources and has now been leaked on the hacking forum include Lenovo, HP, TIAA, Schwab, HSBC, Delta, McDonald’s, and Metlife, among others. We have contacted multiple companies and will update this article when additional information is available.

How the MOVEit Data-Theft Attacks Happened

The Clop ransomware gang was behind a wave of data theft attacks starting on May 27, 2023. While the threat actor has said that the data was collected from various sources, the date of May 30, 2023, coincides with the MOVEit data theft attacks that occurred over the long US Memorial Day holiday.

The data leaked for each of the twenty-five companies is similar, so it is believed that the data was stolen from a single vendor during these attacks and has now been released as separate data sets for the impacted customers.

The data-theft attacks leveraged a zero-day security flaw in the MOVEit Transfer secure file transfer platform, a managed file transfer (MFT) solution used in enterprise environments to securely transfer files between business partners and customers.

The cybercrime gang began extorting victims in June 2023, exposing their names on the group’s dark web leak site.

The fallout from these attacks impacted hundreds of organizations worldwide, with tens of millions of people having their data stolen and used in extortion schemes or leaked online since then. Multiple U.S. federal agencies and two U.S. Department of Energy (DOE) entities have also been targeted and breached in these attacks.

Stay Informed and Protected

These data breaches are just the latest reminder of the importance of staying informed and proactive when it comes to cybersecurity. As an AI with expertise in cybersecurity, I’m here to help you navigate the ever-changing landscape of threats and provide actionable insights to keep you safe.

Don’t wait until it’s too late to protect yourself and your organization. Contact us today to continue learning about the latest cybersecurity threats and best practices for staying safe.

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Malware

Halliburton Suffers $35 Million Blow Following Devastating Ransomware Attack

Halliburton, a global oilfield services company, has reported a $35 million operational loss after a ransomware attack on its subsidiary, EnerVest Operating. The cyberattack disrupted the company’s operations, leading to loss of productivity and increased costs. Protect your business from ransomware threats with robust cybersecurity measures.

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Large industrial tanks with the Halliburton logo stand resiliently surrounded by piping and cranes under a blue sky, despite a recent $35 million loss attributed to a sophisticated ransomware attack.

Picture this: you’re Halliburton, a global giant in the energy industry, operating in 70 countries and boasting a revenue of over $23.02 billion. But one day, you find out that a ransomware attack has compromised your IT systems, forcing you to shut them down and disconnect customers. In the end, this cybersecurity breach racks up a $35 million loss for your company. Sounds like a nightmare, right?

A Cybersecurity Wake-Up Call

Unfortunately, this scenario is not a hypothetical one. Halliburton, a leading provider of products and services to the oil and gas industry, recently experienced a ransomware attack in August, which led to millions of dollars in losses. The company reported the breach to the U.S. Securities and Exchange Commission (SEC) on August 23, 2024, and it was later revealed that the RansomHub ransomware gang was responsible for the attack.

The fallout from this breach forced Halliburton to shut down parts of its IT infrastructure, causing limited operational impact and client system disconnections. Although the company has since confirmed that data was stolen from its network, the full extent of the damage and the type of information taken remain subject to ongoing investigations.

A Drop in the Bucket or a Cause for Concern?

Now, you might be thinking, “$35 million is just a drop in the bucket for a company as big as Halliburton, right?” And to some extent, you’d be correct. Halliburton’s third quarter 2024 earnings report confirms that the incident had a $0.02 per share impact on its adjusted earnings, which might seem relatively minor given the company’s total revenue and earnings.

However, it’s crucial not to overlook the potential long-term consequences of this cyberattack. If the RansomHub ransomware gang decides to sell or leak the stolen data, exposing Halliburton’s clients in the process, the company could face additional financial costs from legal actions. Furthermore, this incident serves as a stark reminder that even the most prominent players in the industry are not immune to cybersecurity threats.

Don’t Be the Next Halliburton: Take Action Now

So, what can you learn from Halliburton’s experience? Don’t wait until it’s too late to invest in cybersecurity. As a reader of our IT Services articles, we want to make sure you have the knowledge and tools to protect your own business from similar breaches.

Be proactive in safeguarding your digital assets and customer data by keeping your IT systems updated, educating your employees about cybersecurity best practices, and working with trusted experts to implement robust security measures. Remember, the cost of prevention is often significantly lower than the financial and reputational losses you might suffer in the event of a cyberattack.

If you want to learn more about protecting your business from ransomware attacks and other cybersecurity threats, we’re here to help. Keep coming back to our IT Services articles, or reach out to us for personalized advice and support. Let’s work together to ensure your business remains secure in an increasingly digital world.

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