AT&T to Pay $177 Million in Settlement for Major Data Breaches
AT&T has agreed to settle allegations stemming from two significant data breaches, with a payout set at $177 million. This decision comes after investigations revealed unauthorized access to sensitive customer data in both 2019 and 2024, which has impacted millions of individuals. According to the Identity Theft Resource Center’s 2024 Annual Data Breach Report, nearly 135 million notices were sent out in 2024 alone, with approximately 10% of those related to the April breach of AT&T’s servers.
On June 20, US District Judge Ada Brown granted preliminary approval for the settlement terms, marking a significant step in resolving legal claims related to the data breaches. The amount will be distributed among customers adversely affected by either incident, with higher compensations for those who can demonstrate direct damages linked to the breaches. Notably, those affected by the 2019 breach could receive up to $5,000, while those impacted by the later breach are eligible for as much as $2,500. Claims will begin processing on August 4, 2025, and must be filed by November 18, 2025.
The breaches in question raised serious concerns about AT&T’s data protection practices. The 2019 incident resulted in the exposure of data pertaining to approximately 7.6 million current and 65.4 million former customers, including sensitive information such as Social Security numbers. The investigation into this breach was triggered when customer data began appearing on illicit online platforms. The subsequent incident, occurring in April 2024, involved a compromise of AT&T’s cloud storage provider, Snowflake. This breach affected a staggering 109 million customers, with call and text records accessed by unauthorized actors. AT&T emphasized that no personal identifiers were associated with the stolen data during this incident.
Both breaches have ignited a series of class-action lawsuits, accusing AT&T of negligence regarding customer data protection. As a tech industry leader, AT&T continues to deny any responsibility for these breaches, attributing the incidents to criminal acts.
From a cybersecurity standpoint, these breaches underline the importance of robust data protection measures and incident response protocols. Initial access and exploitation techniques may have been employed by the attackers, utilizing tactics outlined in the MITRE ATT&CK framework. Techniques such as credential dumping and lateral movement could have facilitated the unauthorized access to sensitive information.
As business owners and professionals continue to navigate the complexities of cybersecurity, the AT&T incident serves as a cautionary tale regarding the necessity of proactive measures against data vulnerabilities. For those seeking further information on cybersecurity tactics and their implications, resources detailing the MITRE ATT&CK Matrix can provide valuable insights into potential adversary actions that could compromise systems.
As the settlement process unfolds, affected customers should remain vigilant for notifications pertaining to their eligibility and the claims process. This incident also highlights the broader repercussions of data breaches on corporate reputations and customer trust. Ensuring compliance with data protection regulations and implementing best practices is essential for mitigating the risks posed by potential cyber threats.
For ongoing updates regarding the settlement and similar cybersecurity incidents, stakeholders are encouraged to monitor relevant news channels frequently. Business owners should also explore educational opportunities available through cybersecurity organizations, ensuring they are equipped to safeguard their operations against evolving threats.
