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TalkTalk hack to cost up to £35m TalkTalk hack to cost up to £35m
(35 minutes later)
The cyber-attack on TalkTalk could cost it up to £35m in one-off costs, the company has said.The cyber-attack on TalkTalk could cost it up to £35m in one-off costs, the company has said.
Following the hack, which divulged some customers' financial details, all customers will be offered a free upgrade. Following the hack, which divulged some users' financial details, all customers of the telecoms group will be offered a free upgrade.
Chief executive Dido Harding said that despite the hack TalkTalk was "well positioned to deliver strong and sustainable long term growth". Chief executive Dido Harding said that despite the hack, TalkTalk was "well positioned to deliver strong and sustainable long-term growth".
The firm expects full-year results to be in line with market expectations.The firm expects full-year results to be in line with market expectations.
Speaking to the BBC's Today programme, Ms Harding said: "The estimated one-off costs are between £30m and £35m - that's covering the response to the incident, the incremental calls into our call centres, obviously the additional IT and technology costs, and then the fact that over the last three weeks until yesterday our online sales sites have been down, so there will be lost revenue as a result." Speaking to the BBC, Ms Harding said: "The estimated one-off costs are between £30m and £35m - that's covering the response to the incident, the incremental calls into our call centres, obviously the additional IT and technology costs, and then the fact that over the last three weeks until yesterday our online sales sites have been down, so there will be lost revenue as a result."
She added that in recognition of the uncertainty that this has caused customers, they will be offered an upgrade. She added that in recognition of the uncertainty that this had caused customers, they would be offered an upgrade.
Customers who were financially affected directly will be free to leave TalkTalk without financial penalty.Customers who were financially affected directly will be free to leave TalkTalk without financial penalty.
On 21 October, hackers attacked TalkTalk's website, stealing confidential customer data.On 21 October, hackers attacked TalkTalk's website, stealing confidential customer data.
The firm was initially uncertain as to the extent of the hack, but after an investigation it said last week that 157,000 of its customers' personal details had been accessed.The firm was initially uncertain as to the extent of the hack, but after an investigation it said last week that 157,000 of its customers' personal details had been accessed.
More than 15,600 bank account numbers and sort codes were stolen. Four people have been arrested and bailed in connection with the hack.More than 15,600 bank account numbers and sort codes were stolen. Four people have been arrested and bailed in connection with the hack.
Ms Harding told the BBC that it was "too early to tell" what the longer-term impact of the breach would be on the business.
"We of course saw an immediate spike in customers cancelling their direct debit, but actually after a few days we saw many of those customers reinstating their direct debits again, so time will tell, but the early signs are that customers think we are doing the right thing," she told BBC business editor Kamal Ahmed.