Boston, MA 06/17/2014 (wallstreetpr) – AT&T Inc. (NYSE:T) is no longer at ease. In fact, it has not been at ease in the recent past as competition intensifies in its industry. However, the recent breach on its data means the company has an added disadvantage, especially in its reputation.
The company reported that between April 9 and April 29, an undisclosed amount of customer data was stolen from its system allegedly by employees of one of its service providers. The company reported about the data breach nearly two months after the attack. It also does not help matters that the company failed to disclose the exact scale of the data breach except citing loss of call records and social security numbers.
If the law is any guide, it appears the data breach on the system of AT&T Inc. (NYSE:T) affected less than 500 people because the law provides for reporting on the total number of affected customers where the breach impacts at least 500 people.
Inside is outside
AT&T Inc. (NYSE:T) fell short of calling the attack on its data an inside job. However, the company confirmed that the employees of one of its vendors must have had a hand in the embarrassing development. At least three employees of the unidentified vendor are suspected of spearheading the stealing of the customer data.
A hurting development
The attack on the system of the U.S. giant telecom provider comes at a time when competition in the industry is turning red-hot, and players are keen to use any opportunity to paint rival in a bad light if only that can boost their user numbers.
In the recent past carriers such as Verizon Communications Inc (NYSE:VZ), AT&T Inc. (NYSE:T), Sprint Corporation (NYSE:S) and T-Mobile US (NYSE:TMUS) persuaded subscribers to their networks by claiming stronger networks and high Internet speeds than rivals.
In recent times, the war has moved to prices and reputation and the attack on the system of AT&T Inc. (NYSE:T) must be stinking to the management of the telecom giant as they have to work extra hard to avoid the company being painted in a bad light in terms data security. Such marketing attacks can cause the company to lose out in revenue and profit fronts amid cutthroat competition.
