AT&T (T) and Verizon Communications (VZ) have confirmed that their networks were hit by the China-linked hacking group known as Salt Typhoon. However, the companies stated that only a limited number of accounts were compromised and assured that their networks are now secure.
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Further, both AT&T and Verizon revealed that the hackers mainly targeted individuals with links to foreign intelligence officials. The companies have informed affected parties and are cooperating with law enforcement agencies to investigate the matter.
It is worth noting that the U.S. government has identified about nine telecom companies targeted by the Salt Typhoon group. The attack was first reported in October by The Wall Street Journal. While the full scope of the breach remains unclear, it is considered a major security incident and highlights the need for enhanced cybersecurity measures.
U.S. Government Boosts Telecom Cybersecurity
Earlier this month, the outgoing Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel proposed a new regulation to prevent these cyberattacks. Under the proposed regulation, all communications service providers will be required to submit an annual certification confirming that they have implemented a cyberattack prevention strategy.
Furthermore, on Friday, the Biden administration held a closed-door meeting with telecom industry leaders, including AT&T CEO John Stankey, to address the weaknesses in this sector.
What Is the Future of AT&T?
Turning to Wall Street, AT&T has a Strong Buy consensus rating based on 15 Buys and three Holds assigned in the last three months. At $26.65, the average AT&T price target implies a 16.58% upside potential. Shares of the company have gained about 45% year-to-date.
Is Verizon a Buy, Sell, or Hold?
Turning to Wall Street, VZ stock has a Moderate Buy consensus rating based on eight Buys and 10 Holds assigned in the last three months. At $46.47, the average Verizon price target implies a 16.41% upside potential. Shares of the company have gained 11.2% year-to-date.
