When Talk Talk suffered a cyber-attack

When Talk Talk suffered a cyber-attack and loss of customer data last October the mobile firm’s shares fell sharply.
Anthony Hilton
The board subsequently put the cost of the attack and remedial measures at no more than £35 million.
But the shares have never properly recovered. By the end of last year and well before the recent stock market meltdown the company had seen its market capitalisation down by about a third — a loss of value of some £750 million.
This share price fall cannot all be blamed on the cyber attack but it does underline how such attacks can act as a catalyst for a host of negative changes.
They cast a shadow over the competence of management; they raise doubts about the adequacy of controls; they precipitate a host of reputational and trust issues with the potential to do severe long-term damage.
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Source: http://www.standard.co.uk/