It appears that TalkTalk grossly underestimated the results of its latest security breach . TalkTalk had previously estimated the price of its negligence to be $50 million. The true figure is significantly higher. In an attempt to stave off a major customer exodus TalkTalk offered free upgrades (extra TV content, free sim cards with calls and data included).
The consequences of TalkTalk's inability to safeguard customer information is now plain to see. The consumer response and its effect on the bottom line have been published by the telecommunications company and the results are damning with losses of $87 million and 100,000 lost to rival service providers. Over 95,000 are said to have left because of the hack.
TalkTalk calculated that around $60 million was spent on restoring its online capabilities.
In a statement to investors the CEO of the TalkTalk group, Dido Harding, naively claimed that faith in the organization has been restored.
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