Telecom giant AT&T (T) reportedly paid a hacker around $400,000 to delete sensitive data they allegedly stole. Here’s what happened and why it matters.
What Happened?
According to Bloomberg, a hacker claimed to have accessed call and text logs from nearly all AT&T wireless customers for six months in 2022. To resolve the breach, AT&T allegedly paid the hacker about $400,000 in Bitcoin to delete the stolen data.
The Payment
The hacker provided a Bitcoin wallet address showing a transaction in mid-May that matched the extortion amount. A source familiar with the situation confirmed that AT&T made the payment. The hacker also reportedly sent a video of them deleting the data, though its authenticity is still up in the air.
Possible Extortion
Blockchain analysis firm Chainalysis examined the Bitcoin transaction and confirmed it as an extortion payment. However, they couldn’t verify if AT&T was the one who made the initial payment. Despite the hefty sum, security expert says the $400,000 payment is “a drop in the ocean” for a company like AT&T.
This isn’t the first time AT&T has faced security issues. In April 2023, hackers targeted users with AT&T email addresses, gaining access to cryptocurrency exchanges and stealing digital assets.
Upcoming Financial Results
This news comes just days before AT&T’s second-quarter results on July 24. Analysts predict the company will report an EPS of $0.57 on revenue of $29.99 billion for the quarter. In the same quarter last year, AT&T posted an EPS of $0.63, beating expectations by $0.03.
What Is AT&T’s Stock Price?
Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average T price target of $21.71. Shares of the company have jumped by nearly 48.5% over the past year. However, the alleged payment made by AT&T to the hackers threatens to remove some of those gains over the coming sessions.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
