TalkTalk Speaks About the Aftermath of Their October Cyber-Attack

The aftermath of a cyber-attack on TalkTalk in October 2015 has been revealed to the public, and it is staggering.

Following the hack in October, the company lost 101,000 customers and an estimated £60,000,000 following a panicked exodus of customers who feared their personal information had been raided. The resultant investigation has revealed that the attack was not as damaging as was originally feared, with only 157,000 of TalkTalk’s 4,000,000 customers affected and no long-term financial loss for those customers who were hacked. The fact that most of the customers avoided financial loss is partially due to post-hack preventative measures and partially the result of insurance companies, since the 157,000 hit did have their payment information stolen.

However, the attack was handled in a way that left customers furious and drove many to competitors. TalkTalk did not lift its early termination fees after the attack, so the thousands of customers who feared for their security were forced to pay charges if they wanted to leave – although they were offered a free upgrade instead, which 500,000 customers accepted. Business-wise, the third quarter of 2015 was dominated by the hack, and the cost of the disruption it caused was massive for TalkTalk. Due to the ongoing police investigation, their website suspended it’s operations, losing them £15,000,000, then an additional £45,000,000 spiralled away in lost business, customer claims, security costs and other miscellaneous fees, creating a net loss for TalkTalk of £60 million.

Despite all this, TalkTalk seems to be on the mend, with it’s annual figures due to be released this week. These are anticipated not just by those who want to see whether the firm has recovered on course, but also by those  evaluating the success of their post-attack reformations. In the aftermath of the attack, the company unsurprisingly ramped up their security enormously, completely overhauling their cyber security training and cyber security system through enterprise blockchain development, and instituted a cost-cutting programme to try to improve customer relations. Orenda Security will help you to identify the risks to protect your business.

They have also spent £19 million on upgrading their services, focusing on preventing billing errors, quickly repairing any issues and promoting customer satisfaction. According to analyst Jerry Dellis, the company’s focus going forward will be far more introspective, keeping their attention trained on the customers they already have and avoiding over-expanding.

As a result of these moves, their yearly earnings are expected to gross £111 million, which is an increase of £16 million on last year’s results, even with the hack taken into account. However, the effects of the attack are likely to impact TalkTalk’s growth for as many as two more years. Unfortunately, some companies think of proper IT management only when something like this happen. Click here if you wish to use the advancement in technology to simplify business processes safely.