Aflac says cyberattack breach could expose personal data of customers
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(NEW YORK) — A group of cybercriminals hacked into data systems at insurance company Aflac, possibly gaining access to sensitive information such as Social Security numbers and health reports, the company said on Friday.
Aflac, which boasts millions of customers, “identified suspicious activity” and “stopped the intrusion within hours,” the company said.
The company attributed the attack to a “sophisticated cybercrime group” but did not identify the organization.
The cyberattack marks the latest in a string of data breaches targeting insurance companies, including attacks earlier this month against Philadelphia Insurance Companies and Erie Insurance.
“This attack, like many insurance companies are currently experiencing, was caused by a sophisticated cybercrime group. This was part of a cybercrime campaign against the insurance industry,” Aflac said in a statement. The company has opened an investigation into the cyberattack, saying initial findings indicate the cybercriminals deployed “social engineering tactics” or measures that rely on manipulation to gain network access.
Information tied to customers’ insurance claims and personal data may also have been breached in the cyberattack, Aflac said.
“We regret that this incident occurred,” Aflac said. “We will be working to keep our stakeholders informed as we learn more and continue investigating the incident.”
Aflac generated nearly $19 billion in revenue last year, which marked a 1.2% increase over the previous year, according to an earnings release.
(NEW YORK) — U.S. stocks rallied in early trading on Wednesday, one day after President Donald Trump said tariffs on China would “come down substantially.”
Trump also appeared to soften previous attacks on the Federal Reserve, saying late Tuesday he has “no intention” of firing top central banker Jerome Powell.
The Dow Jones Industrial Average jumped 625 points, or 1.6%, while the S&P 500 climbed 2.5%. The tech-heavy Nasdaq increased 3.4%.
Shares of electric carmaker Tesla surged 6.5% in the first trading since CEO Elon Musk said his time devoted to the Department of Government Efficiency would “drop significantly” next month, paving the way for his return to the company. Still, Tesla shares have fallen by nearly half since a December peak.
Musk described his work at DOGE as necessary, but he said that “working for the government to get the financial house in order is mostly done.”
The uptick also took hold at the other so-called “Magnificent Seven” tech giants, which drove much of the gains in the S&P 500 over recent years.
Facebook parent Meta climbed 5%, while chipmaker Nvidia also increased 5%.
Earlier this month, Trump hiked tariffs on Chinese goods to a total of 145%, prompting China to respond with 125% levies on U.S. products.
The tit-for-tat measures escalated a trade war between the world’s two largest economies, but the White House this week appeared to signal a desire to ease the tensions.
Treasury Secretary Scott Bessent reportedly told a group of investors on Tuesday that “over the very near future, there will be a de-escalation” of the trade war with China. Bloomberg News first reported the remarks.
Bessent’s comments, which came at a private JPMorgan event, sent stocks climbing on Tuesday afternoon. Trump echoed the sentiment hours later.
“145% is very high and it won’t be that high,” Trump told reporters at the White House late Tuesday. “It won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.”
This is a developing story. Please check back for updates.
(NEW YORK) — Inflation cooled in the aftermath of President Donald Trump’s “Liberation Day” levies last month, dropping to a four-year low and defying fears of tariff-driven price hikes, government data this week showed.
Even egg prices — a symbol of rising costs — fell about 10% in April compared to the previous month.
Still, prices for some products continued to soar, including everyday items such as coffee and beef.
It’s normal for some prices to rise at a much faster pace than overall inflation, said Omar Sharif, founder and president of research firm Inflation Insights. The impact, he added, depends on the role such items play in a given person’s finances.
“At the end of the day, what’s important is the weight of the price change in your budget,” Sharif said, noting stubborn price hikes for some goods may be offset by price drops for others.
Here’s what to know about which prices are still climbing and what’s behind the trend:
Coffee
Coffee prices soared 9.6% in April compared to a year ago, marking inflation four times higher than the overall rate. Instant coffee prices climbed even faster, jumping 13.5% over the past year.
The spike in coffee prices comes down to a dearth of supply alongside robust demand, meaning too many dollars are chasing after too few coffee beans, David Ortega, a food economist at Michigan State University, told ABC News.
Recent droughts in Vietnam and Brazil — two of the world’s largest coffee producers — have restricted global output, Ortega said.
“These price increases are primarily driven by weather shocks,” Ortega added.
Meanwhile, coffee drinkers avail themselves of few alternatives, resulting in consistent demand for the product.
Beef
A spike in beef prices also stems from a supply shortage that traces back to drought conditions, Ortega said.
Ground beef prices soared 10% in April compared to a year ago, while the costs of beef steaks increased 7% over that period, government data showed.
In 2022, a major drought in the beef-producing regions of the U.S. forced cattle herders to sell off more animals than usual, since the drought raised costs for cattle feed, which in turn made it more expensive for ranchers to maintain their herds, Ortega said.
Many of those ranchers, he added, sold off cattle necessary to produce future beef supply.
“The national beef herd is at its lowest level in decades – and demand is strong,” Ortega said. “When those two things meet each other, you get this big rise in prices.”
Car repairs
Car repair prices soared 7.6% in April compared to a year earlier, amounting to inflation three times higher than the overall rate.
The trend owes in large part to the rise of high-tech cars, equipped with features like rearview cameras and traffic sensors, which have added cost to even some routine repairs, Brian Moody, executive editor at Autotrader, told ABC News.
A shortage of workers has exacerbated the cost woes for repair companies as they bolster compensation to attract and retain employees, sending prices higher, Moody added.
“More people want technology in their cars,” Moody said. “That technology requires greater skill to manage and fix, but at the same time, there’s a shortage of technicians and workers.”
Men’s and women’s outerwear Overall apparel prices dropped slightly over the year ending in April, but some items may still deliver sticker shock for spring shoppers.
Prices for men’s outerwear, including suits and sports coats, climbed 5.3% over the year ending in April, which amounts to inflation more than double the overall rate.
Women’s outerwear costs — which include jackets, coats and vests — surged even faster, climbing 6.2%.
Sharif, of Inflation Insights, said the reason for these price increases is murky since they have coincided with a much slower rise in costs for producers of men’s outerwear and an outright drop in production costs for women’s outerwear.
The ample supply of such products means the price hikes likely result from quirks in consumer taste, potentially resulting from the prices commanded by specialty brands, Sharif added.
“Shifting trends in demand may be pushing prices higher,” Sharif said.
(NEW YORK) — Consumer attitudes soured in May for the fourth consecutive month, even as President Donald Trump dialed back some tariffs. The reading came in below the level economists expected.
Shopper sentiment now hovers near its lowest level since a severe bout of inflation three years ago, University of Michigan survey data on Friday showed. Before that, the measure of consumer attitudes hadn’t ever fallen this low.
The monthslong decline in consumer sentiment traces back to inflation fears and recession warnings set off by Trump’s initial rollout of levies.
A trade agreement between the U.S. and China this week slashed tit-for-tat tariffs between the world’s two largest economies and triggered a surge in the stock market. Within days, Wall Street firms softened their forecasts of a recession.
The U.S.-China accord marked the latest softening of Trump’s levies, coming weeks after the White House paused far-reaching “reciprocal tariffs” on dozens of countries. Trump also eased sector-specific tariffs targeting autos, and rolled back duties on some goods from Mexico and Canada.
The drawdown of tariffs coincided with data suggesting the economy remains in solid shape.
Inflation eased slightly last month, dropping to its lowest level since 2021, government data this week showed. Plus, the economy continues to add jobs at a solid pace.
Still, uncertainty looms over the economic outlook.
An array of tariffs remain in place, including an across-the-board 10% levy that applies to imports from nearly all countries. Additional tariffs have hit auto parts, as well as steel and aluminum.
Even after the pullback, a 30% tariff on China far exceeds the level before Trump took office, posing a risk of price increases for a large swathe of products that includes apparel, toys and some electronics.
Walmart executives on Thursday warned of tariff-driven price increases for perishable imports such as coffee, avocados, bananas and roses, as well as toys and electronics.
Consumers showed signs of weakness last month as retail sales slowed, indicating shoppers may be pulling back as they await possible fallout from tariffs. The trend poses a risk for the wider economy, since consumer spending accounts for roughly two-thirds of economic activity.
The U.S. economy shrank at the outset of this year, registering a sharp drop-off from robust growth over the final months of 2024.
But a surge of imports ahead of Trump’s tariffs likely clouded the figure, since the calculation subtracts imports in an effort to exclude foreign production from the calculation of gross domestic product. Analysts cautioned that a lowering of GDP on account of this trend would not reflect economic weakness.
