AT&T hit with second insider data breach

By Erin Ayers on October 9, 2014

attlogoAT&T recently began notifying Vermont-based customers of a data breach caused by an employee’s violation of the company’s privacy policy. About 1,600 customers were affected by the breach, by which the employee inappropriately accessed information including Social Security numbers, driver’s license numbers and usage data.

The breach occurred in August, according to the letter AT&T is sending to customers. The employee responsible has since been fired from the company, according to Michael Chiaramonte, director of financial billing operations at AT&T.

“Simply put, this is not the way we conduct business,” he said in the letter. Affected customers are being advised to change their account passcodes and AT&T is offering to pay for one year of credit monitoring services.

AT&T experienced a similar breach in April of this year. Employees of an outside vendor stole customer information in an apparent effort to gain “unlock” codes for mobile phones. Recent reports indicate that employee error and insider threats are among the most costly and common risks for businesses.

erin.ayers@zywave.com'

Erin is the managing editor of Advisen’s Front Page News. She has been covering property-casualty insurance since 2000. Previously, Erin served as editor-in-chief of The Standard, New England’s Insurance Weekly. Erin is based in Boston, Mass. Contact Erin at [email protected].