AT&T paid hackers $370,000 to delete stolen customer data

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How does the leak relate to the recent incident involving Snowflake?

Recently, the American telecommunications giant AT&T reported another large-scale data leak of its customers. Attackers gained access to the information of almost all AT&T wireless users, as well as customers of virtual mobile operators (MVNOs) using the company's network.

According to WIRED, AT&T paid one of the members of the hacker group to delete the stolen data. The cybercriminal provided journalists with evidence of the transaction, which took place on May 17. The payment amount was about 5.72 bitcoins, which at the time of the transaction was equal to 373,646 dollars. Initially, the hackers demanded a whole million dollars from AT&T, but in the end they agreed to a third of this amount. The hacker provided the company with a video to confirm that the data was deleted.

AT&T itself learned about the data leak in mid-April. Hacker John Erin Binns, allegedly responsible for the theft, contacted a security researcher known under the pseudonym Reddington. Binns said he accessed the call and message records of millions of AT&T customers through a poorly secured cloud storage system called Snowflake.

Meanwhile, the Snowflake incident, which we have already covered from various angles, affected about 165 companies, including Ticketmaster, Santander Bank and Neiman Marcus. Depending on the size of the organization, hackers demanded a ransom in the amount of 300 thousand to 5 million dollars.

The information stolen from AT&T included call and text message metadata, but did not include the names of phone owners or the content of conversations. However, hackers have demonstrated how easy it is to identify the owners of numbers using a reverse search program.

AT&T said the leak affected "almost all" of the company's cellular customers, as well as subscribers of other carriers who communicated with AT&T customers between May 1 and October 31, 2022, and January 2, 2023.

The company disclosed information about the leak only on July 14, despite the fact that it learned about it back in April. The delay is due to the fact that the US Department of Justice granted AT&T a reprieve for national security reasons.

Previously, AT&T has repeatedly become a victim of hacker attacks. The last major leak of 70 million customers occurred in 2021, but in 2024 the same data surfaced on one of the hacker forums again, and absolutely free for cybercriminals. The company long denied the authenticity of this leak, but eventually gave up and admitted hacking.

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