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TalkTalk given record fine over data breach that led to theft of nearly 157,000 customers TalkTalk given record fine over data breach that led to theft of nearly 157,000 customers
(35 minutes later)
TalkTalk has been fined a record £400,000 fine for security failings which led to the theft of personal data of nearly 157,000 customers, a watchdog announced. TalkTalk has been fined a record £400,000 fine for security failings which led to the theft of personal data of nearly 157,000 customers.
The cyber attck in October last year exposed the latest security failure for the company, which was forced to admit it had not encrypted some personal details of customers. The hackers appeared to have stolen details that amount to a full toolkit for fraud including names, addresses and bank account information. The cyber attack in October last year exposed the latest security failure for the company, which was forced to admit it had not encrypted some personal details of customers. 
The Information Commissioner's Office said the attack could have been prevented if TalkTalk had taken basic steps to protect customers' information. The Information Commissioner's Office (ICO) said the attack could have been prevented if TalkTalk had taken basic steps to protect customers' information.
Elizabeth Denham, the Information Commissioner, said: “TalkTalk's failure to implement the most basic cyber security measures allowed hackers to penetrate TalkTalk's systems with ease.” Nearly 157,000 customers had their details stolen, including bank account numbers, birth dates and addresses.
“Yes hacking is wrong, but that is not an excuse for companies to abdicate their security obligations. Elizabeth Denham, the Information Commissioner, said: “TalkTalk's failure to implement the most basic cyber security measures allowed hackers to penetrate TalkTalk's systems with ease."
”TalkTalk should and could have done more to safeguard its customer information. It did not and we have taken action,“ she added. “Yes hacking is wrong, but that is not an excuse for companies to abdicate their security obligations."
More follows ”TalkTalk should and could have done more to safeguard its customer information. It did not and we have taken action," she added.
An investigation by the ICO found hackers gained access to the database of details which TalkTalk had from its takeover of rival firm Tiscali via vulnerable web pages which it had not spotted.
TalkTalk also avoided "two warnings" prior to the hack which should have alerted the firm to the problems with its software and data storage. 
“In spite of its expertise and resources, when it came to the basic principles of cyber-security, TalkTalk was found wanting,” Denham said.
“Today’s record fine acts as a warning to others that cyber security is not an IT issue, it is a boardroom issue. Companies must be diligent and vigilant. They must do this not only because they have a duty under law, but because they have a duty to their customers,” she added.
TalkTalk profits more than halved following the cyber-attack.
Pre-tax profit fell to £14 million in the year to 31 March, from £32 million a year earlier.
Earlier this year, Dido Harding, TalkTalk chief executive, admitted that last October was a challenging period for the company.
She said TalkTalk was working to regain customers' trust.
“Throughout the cyber-attack, we worked hard to put our customers first, and we know that they have appreciated our efforts and our honesty throughout.”
“Nevertheless, last October was a challenging period for TalkTalk and its customers and, in recognition of that, I have made a personal decision to donate my bonus to our charity partner,” she said. 
Despite presiding over the firm in the year it was hit by the attack, Harding has seen her 2015 pay almost triple.
Her  total income rose to £2.8 million in 2015, up from just over £1 million the year before, according to the firm’s annual results.