TalkTalk share price slumps as firm hires BAE to help with cyber-attack investigation

TalkTalk share price slumps as firm hires BAE to help with cyber-attack investigation
Written by:
Veselin Valchev
26th October 2015
Updated: 11th March 2020

Talktalk Telecom Group Plc’s (LON:TALK) share price slid today, despite the company’s efforts to reassure customers and investors that it has taken sufficient precautions following the massive breach on its website last week.

The telecom has hired BAE Systems Plc (LON:BA), the UK defence giant, to help investigate the cyber-attack, which may have compromised personal data of TalkTalk’s four million customers.
“BAE Systems are supporting us as we investigate this week’s cyber-attack,” a spokeswoman for TalkTalk said as quoted by Reuters, declining to give further details.
A spokeswoman for BAE’s Applied Intelligence division said the company’s cyber-specialists were analysing “vast quantities” of data to help establish how the breach happened and what information was stolen.
TalkTalk said on Saturday that the breach was less serious than it initially appeared, and that no money could be stolen from customers with the accessed data.
In an interview with The Guardian, the firm’s chief executive, Dido Harding, said it was “too early to say” whether the company will establish a compensation fund to handle the fallout from the attack because it was still unclear how many customers had been affected and to what degree.
Experts have calculated that TalkTalk could be looking at up to £75 million in lost revenue and compensation due to the attack.
Harding insisted that TalkTalk would “thrive” following the attack, if customers saw that it was being transparent about what had happened.
“[Both] we and our customers are the victim of a criminal attack,” she said. “What we’re trying to do is to be open and transparent about it and share the information maybe earlier than people are used to, so we can warn our customers and protect them.”
TalkTalk’s share price had slid 9.21 percent to 233.15p as of 14:59 GMT today, extending the nine-percent loss on Friday.
As of 15:11 GMT, Monday, 26 October, Talktalk Telecom Group PLC share price is 233.95p.

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