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.