AT&T’s Data Scheme Unveiled After Big Security Breach

CNBC‘s Josh Lipton, and Mike Prospero, Tom’s Guide reviews editor, discussed a security breach at Ma Bell, where customer data was compromised by a third-party vendor. “AT&T Inc. (NYSE:T) confirmed that the attackers have compromised the security of a number of its mobility wireless customers; personal information!” Mr. Lipton commenced. Now, the company assured that it has taken steps to help prevent it from ever happening again. But, should wireless customers still be leery here? How did this get by? – the reporter asked, emphasizing the fact that it was employees of one of AT&T’s vendors that stole this personal information.

To this, Mr. Prospero answered that it has been just a breach of protocol and, although the telecom company said that it has taken measures to avoid this from happening again, someone can always find a loophole. Consumers should be concerned to varying degrees. While AT&T Inc. (NYSE:T) already alerted its customers, “if you suspect a data breach, you can always use a credit monitoring service to make sure that someone hasn’t taken your social security number and used it for ill purposes.”

The breach was first reported in May. However, concerns regarding its actual reach still linger. Some customers could feel inclined to believe that the breach was actually much larger than previously informed, and could be concerned about their personal data’s safety. “We know that at least 500 customers, in California alone, have been affected by this, because it is required by law. But all the other people who have been affected have already been notified by AT&T Inc. (NYSE:T), and they are not saying how many is the total. But the affected customers have been notified.”

To close up, Mr. Prospero highlighted the importance of having good passwords to increase your security when using a smart phone or other devices.

AT&T Inc. (NYSE:T)’s stock fell more than 4% since mid-May, and roughly 0.3% during Monday’s trading, after the data scheme was unveiled.

Disclosure: Javier Hasse holds no position in any stocks mentioned.