TalkTalk admits to breach of customer data

TalkTalk, the phone and broadband giant which  has 4 million customer, has admitted to a major data breach, which led to account numbers, addresses and phone numbers falling into the hands of online criminals – who used the data to steal thousands of pounds.

According to the company, a third-party contractor with legitimate access to its customer accounts was involved in the data breach last year, and that legal action had been initiated against the supplier.

The admission by TalkTalk comes after irate customers complained online that they had  received calls purporting from TalkTalk, but which turned out to be fraudsters.

Customers said the callers knew their TalkTalk account numbers and other personal details, which they used to attempt to gain access to the customer's computer and to raid their bank account.

The Guardian, in December reported a possible data breach at the company, said to have originated from one of its Indian call centres.

The company said at the time, that it was investigating the issue, and in January said it was aware of around 100 complaints. But since then, many more customers said they had been contacted by the scammers.

Meanwhile, The Telegraph reported that the data breach could make fraud far easier for attackers, who could phone customers and quote their address and account number to convince them that they were actually TalkTalk staff, before requesting bank details or other sensitive information.

The company told paper, ''We believe that in some cases the malicious individuals who have been targeting our customers are trying to trick people into thinking they are genuine TalkTalk callers.

''We know that unfortunately a small number of customers may have revealed more detailed information, such as their bank details. In some of these cases we know they may be using the information they have illegally obtained.''