AT&T and Verizon Contain Cyberattack Linked to China's Salt Typhoon Group

Telecom giants AT&T Inc T and Verizon Communications Inc VZ announced that their networks are secure following a cyberespionage attack by the China-linked Salt Typhoon group.

This marks the first acknowledgment by the companies of the breach, TechCrunch reports. Both the stocks are down Monday.

AT&T’s Alexander Byers communicated to TechCrunch the company currently detects no nation-state activity on its networks.

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Verizon’s Richard Young confirmed to TechCrunch that the breach had been contained, with verification from a respected third-party cybersecurity firm, though the firm remains unnamed.

Both companies emphasized TechCrunch’s collaboration with federal law enforcement and cybersecurity experts to address the incident.

AT&T told TechCrunch that China-backed hackers targeted a limited number of individuals with foreign intelligence ties, with relatively few instances of compromised information.

Verizon told TechCrunch that it identified the attackers as focusing on a small group of high-profile government customers.

Verizon’s chief general officer said the company took decisive actions, collaborating with law enforcement, national security agencies, and private cybersecurity firms to address and contain the breach.

U.S. officials have identified at least nine telecom providers targeted by Salt Typhoon, including Lumen Technologies Inc LUMN and T-Mobile US, Inc TMUS.

China denied the hacking allegations, but U.S. officials remain concerned about its extensive hacking program. FBI Director Christopher Wray stated that China’s cyber operations surpass all other significant nations combined.

In April, Wray cautioned that China could disrupt U.S. infrastructure, explicitly targeting telecommunications, energy, and water sectors.

In May, a significant hacking event compromised the data of U.K. military personnel, with China emerging as the primary suspect.

Microsoft Corp MSFT and other cybersecurity companies are investigating the Salt Typhoon breach.

U.S. and China remain embroiled in geopolitical tensions. The Western counterpart imposed semiconductor sanctions on its Asian counterpart after the 2020 pandemic outbreak disrupted semiconductor supply chains.

Investors can gain exposure to the telecom stocks through Fidelity MSCI Communication Services Index ETF FCOM and Vanguard Communication Services ETF VOX.

Price Actions: At the last check on Monday, T stock was down 1.03% to $22.63.

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