Report Uncovers AT&T and Verizon Neglecting to Inform Most Victims Impacted by Chinese Call-Records Breach

Report Uncovers AT&T and Verizon Neglecting to Inform Most Victims Impacted by Chinese Call-Records Breach

Report Uncovers AT&T and Verizon Neglecting to Inform Most Victims Impacted by Chinese Call-Records Breach


### Telecom Companies Criticized for Not Informing Users About Chinese Metadata Hack

In a disturbing turn of events, prominent U.S. telecom firms, such as AT&T and Verizon, are allegedly failing to inform most of their customers whose call metadata was compromised in an intricate cyberattack linked to the Chinese hacking entity Salt Typhoon. This incident, which has compromised sensitive metadata of more than a million people, prompts serious concerns regarding transparency, cybersecurity measures, and the responsibilities of telecom companies towards their users.

#### **Extent of the Breach**

Reports from NBC News indicate that the hacking operation focused mainly on metadata rather than the actual content of communications. Metadata encompasses details such as the involved phone numbers, call durations, and timestamps. Although this information might seem less sensitive compared to the actual conversations or texts, experts caution that metadata can be leveraged to deduce highly personal information about individuals, including their social networks, routines, and even geographical locations.

The breach has already resulted in serious ramifications for notable figures. U.S. government officials, ranging from senior congressional aides to security personnel, and including President-elect Donald Trump and Vice President-elect J.D. Vance, are said to have had their calls and messages directly accessed. Nevertheless, for the overwhelming majority of impacted individuals, the accessed data was confined to metadata, and telecom firms have largely abstained from alerting these users.

#### **Why the Silence for Customers?**

The absence of notifications is attributable to a mix of regulatory loopholes and corporate guidelines. Following a Federal Communications Commission (FCC) directive issued in December 2023, telecom providers are required to inform customers of breaches only if there is a substantial risk of harm. This “harm-based notification trigger” lets carriers avoid notifying users if they assess that the breach is not likely to cause financial, physical, or other major detriment.

Both AT&T and Verizon have asserted their compliance with notification obligations for the affected parties. Nevertheless, sources informed about the companies’ strategies suggest that only a limited group of customers—specifically those whose communications were directly targeted—have been informed. The FBI, currently investigating the breach, has similarly indicated that it will not alert the wider victim group.

#### **The Discussion on Harm and Transparency**

The FCC’s harm-based approach has ignited a conversation about finding a balance between averting “notification fatigue” and guaranteeing transparency. The FCC posits that excessive notifications can trigger unwarranted anxiety and actions, such as altering passwords or freezing credit, in situations where actual harm is improbable. On the other hand, critics argue that this stance leaves consumers uninformed regarding possible risks and diminishes their capacity to make educated choices about their service providers.

U.S. Senator Ron Wyden (D-Ore.) has openly criticized the telecommunications sector for its management of cybersecurity and data breaches. In response to the Salt Typhoon incident, Wyden has suggested legislation to bolster telecom security requirements and demand heightened transparency. “Americans deserve to be informed when their information has been compromised,” a representative for Wyden commented, emphasizing that such notifications could empower consumers to choose providers with superior security protocols.

#### **Risks Associated with Metadata Exposure**

Though metadata does not comprise the substance of communications, its exposure can still pose significant risks. A 2016 study by Stanford University researchers illustrated that telephone metadata is intricately connected and can be utilized to draw sensitive conclusions about individuals. For instance, metadata could expose communication patterns that hint at a person’s political beliefs, health issues, or personal connections.

The potential for exploitation is especially alarming in the context of state-backed hacking. Metadata could serve as a tool for surveillance, extortion, or other malicious intents, particularly when combined with additional data sources.

#### **Track Record of the Telecom Industry**

This is not the first instance of telecom companies being scrutinized for their management of customer data. In July 2024, AT&T unveiled a distinct breach concerning call and text metadata stored on a third-party cloud system. In that scenario, the company informed affected customers and provided resources to safeguard their information. However, the Salt Typhoon hack seems to exist in a legal gray area, with carriers contending that the harm is insufficient to necessitate widespread notifications.

The telecom sector has also typically resisted regulatory scrutiny in other aspects. After the FCC sanctioned carriers for selling user location data, companies including AT&T and Verizon launched lawsuits challenging the FCC’s authority to impose such penalties.

#### **Looking Ahead**

The Salt Typhoon breach underscores the pressing need for enhanced cybersecurity protocols and clearer regulations surrounding data breaches. While the FCC’s harm-based standard seeks to prevent over-notification, it may inadvertently promote a lack of accountability among telecom providers. As the investigation proceeds, lawmakers like Senator Wyden are advocating for reforms to ensure that customers are better informed and protected moving forward.

For the time being, customers are left in uncertainty regarding whether their data has been compromised and what measures, if any, they might take to safeguard themselves. The situation serves as