IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

ICO fines TalkTalk £100k for data breach

Data watchdog found that the company failed to use adequate safeguards

TalkTalk

The ICO has fined TalkTalk 100,000 for failing to protect consumer data from hackers in 2014, when personal details of 21,000 customers were leaked into the public domain.

The regulator said TalkTalk had breached the Data Protection Act because it didn't safeguard the huge amounts of data it held about its customers from staff. Employees were able to imporperly access the information, which was used by fraudsters to make scam calls to customers, using their names, addresses, phone numbers and account numbers.

The investigation revealed it was actually employees of Wipro, a third party company working with TalkTalk to resolve complaints about network coverage, that were able to access and swipe the data. The ICO found three Wipro accounts that had siphoned off the data, although 40 employees in total had access to the information.

"TalkTalk may consider themselves to be the victims here," Information Commissioner Elizabeth Denham said. "But the real victims are the 21,000 people whose information was open to abuse by the malicious actions of a small number of people. TalkTalk should have known better and they should have put their customers first."

The ICO said TalkTalk's actions breached the seventh principle of the Data Protection Act because it didn't have the appropriate technical or operational safeguards in place to prevent employees from accessing the confidential information. This is despite the company being aware of regulations surrounding data protection and having ample time to fix the flaws.

"This incident highlights why it is essential for companies to understand exactly how users are interacting with the network and data," Nir Polak, CEO at Exabeam. "Had TalkTalk had a means to monitor the activities of employees and third parties, its incident response team could have spotted the inappropriate access to customer data."

Measures TalkTalk could have taken to prevent employees accessing the data include ensuring the portal where the customer details were stored could only be accessed from authorised devices and preventing anyone from accessing or exporting the information via the portal.

"Big companies have been able to get away with lax security for years," said Jan van Vliet, Digital Guardian's vice president and general manager for EMEA. "Thankfully, with the GDPR now on the horizon, the days for such complacency really are numbered. These businesses can expect to swap a 100,000 fine for data protection breaches for one in the millions."

Featured Resources

Meeting the future of education with confidence

How the switch to digital learning has created an opportunity to meet the needs of every student, always

Free Download

The Total Economic Impact™ of IBM Cloud Pak® for Watson AIOps with Instana

Cost savings and business benefits

Free Download

The business value of the transformative mainframe

Modernising on the mainframe

Free Download

Technology reimagined

Why PCaaS is perfect for modern schools

Free Download

Recommended

Ten ways to protect your company from the next big data breach
data breaches

Ten ways to protect your company from the next big data breach

18 Feb 2022
MoJ faces £17.5m GDPR fine over subject access request backlog
data protection

MoJ faces £17.5m GDPR fine over subject access request backlog

20 Jan 2022
Gumtree site code made personal data of users and sellers publicly accessible
data protection

Gumtree site code made personal data of users and sellers publicly accessible

16 Dec 2021
Cabinet Office fined £500,000 for New Year Honours data leak
data breaches

Cabinet Office fined £500,000 for New Year Honours data leak

3 Dec 2021

Most Popular

How to boot Windows 11 in Safe Mode
Microsoft Windows

How to boot Windows 11 in Safe Mode

7 Jun 2022
Attracting and retaining talent through training
Sponsored

Attracting and retaining talent through training

13 Jun 2022
Delivery firm Yodel disrupted by cyber attack
cyber attacks

Delivery firm Yodel disrupted by cyber attack

21 Jun 2022