AT&T Text and Call Data Stolen in Expanding Snowflake Hack

AT&T Suffers Major Data Breach Linked to Snowflake Hack

AT&T Inc. recently reported a significant data breach where thieves made off with half a year’s worth of call and text data, affecting nearly all of its wireless users. This breach is part of a broader hacking campaign that has impacted up to 165 customers of Snowflake Inc., a data analysis software company. Snowflake revealed in June that hackers had targeted its clients, blaming them for insufficient data protection measures. Despite this, the company’s reputation has taken a hit due to the breach.

A Snowflake spokesperson confirmed that the AT&T incident is linked to the same group of hacks that have compromised other clients, including Ticketmaster, under Live Nation Inc., and LendingTree. The hacking group has suspected members in North America and Turkey, according to Mandiant, a unit of Google Cloud. Analysts warn that the sequence of Snowflake-related intrusions appears more severe than initially expected, potentially causing short-term business slowdowns.

National Security Concerns Over Compromised Data

The stolen data includes critical details such as call and text information and location data of AT&T customers, raising national security concerns. This data could reveal sensitive communications involving politicians, executives, activists, and journalists. Experts underline that while some Snowflake clients only lost email addresses, the detailed nature of AT&T's compromised data presents a risk on a different scale.

Snowflake’s Response and Future Measures

Hackers have tried to extort Snowflake customers for up to $5 million each, though they have only managed to collect less than $1 million across no more than five companies. Snowflake claims that its own systems remained largely uncompromised, except for one employee’s demo account. In response, the firm has launched new cybersecurity monitoring tools and plans to implement multifactor authentication by default. These actions are seen as positive steps towards restoring customer trust.

The breach is less damaging to Snowflake’s reputation compared to incidents at firms like Okta Inc. and SolarWinds Corp., primarily because Snowflake’s core offerings do not focus on security software. Nevertheless, the company continues to manage the fallout and address vulnerabilities.

Additional Victims and Ongoing Investigation

The hacking campaign also affected luxury retailer Neiman Marcus, which notified approximately 64,000 individuals about stolen personal information after unauthorized access was gained through a Snowflake platform. Snowflake announced it hasn’t detected any unauthorized customer account access since early June and has concluded its investigation into the incidents.

FCC Involvement

The Federal Communications Commission (FCC) has initiated an investigation into the extensive breach of AT&T customer data, underlining the breach’s significance and the need for regulatory oversight.

Maintaining Customer Relationships

In the wake of the breach, Snowflake’s efforts to ensure data security and maintain customer relationships are pivotal. According to an analyst at RBC Capital Markets, the company’s new measures are essential for maintaining customer trust. Snowflake’s management asserts that they continue to have a strong relationship with AT&T, despite the crisis.

Conclusion

As the extent of the breach unfolds, Snowflake and its affected clients are focusing on tightening security measures and managing the resulting damage. The hacks highlight the ongoing challenges companies face in protecting data against increasingly sophisticated cyber threats.