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UK Telco Hit With Record Fine Following Record Data Hack

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The UK based telco, TalkTalk has been issued with a record £400,000 fine by the UK's privacy watchdog following a major data breach which saw thousands of customer account details stolen by hackers.

The Information Commissioner Office (ICO) said that its investigation found that an attack on the company last October could have been prevented if TalkTalk had taken basic steps to protect customers' information.

ICO investigators found that the cyber attack between 15 and 21 October 2015 took advantage of technical weaknesses in TalkTalk's systems. The attacker accessed the personal data of 156,959 customers including their names, addresses, dates of birth, phone numbers and email addresses. In 15,656 cases, the attacker also had access to bank account details and sort codes.

Information Commissioner Elizabeth Denham said: "TalkTalk's failure to implement the most basic cyber security measures allowed hackers to penetrate TalkTalk's systems with ease."

"Yes hacking is wrong, but that is not an excuse for companies to abdicate their security obligations. TalkTalk should and could have done more to safeguard its customer information. It did not and we have taken action."

The data was taken from an underlying customer database that was part of TalkTalk's acquisition of Tiscali's UK operations in 2009. The data was accessed through an attack on three vulnerable webpages within the inherited infrastructure. TalkTalk failed to properly scan this infrastructure for possible threats and so was unaware the vulnerable pages existed or that they enabled access to a database that held customer information.

TalkTalk was not aware that the installed version of the database software was outdated and no longer supported by the provider. The company said it did not know at the time that the software was affected by a bug - for which a fix was available. The bug allowed the attacker to bypass access restrictions. Had it been fixed, this would not have been possible.

The attacker used a common technique known as SQL injection to access the data. SQL injection is well understood, defences exist and TalkTalk ought to have known it posed a risk to its data, the ICO investigation found.

On top of that the company also had two early warnings that it was unaware of. The first was a successful SQL injection attack on 17 July 2015 that exploited the same vulnerability in the webpages. A second attack was launched between 2 and 3 September 2015.

A criminal investigation by the Metropolitan Police has been running separately to the ICO's investigation.

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Tags: talktalk  UK