He has been held on suspicion of offences under the Computer Misuse Act, after the telecoms company's website was hit by a cyber attack last week which affected its four million customers.
A ransom demand was made on Saturday by a group calling themselves 'cyber jihadis'.
A TalkTalk spokeswoman said: "We know this has been a worrying time for customers and we are grateful for the swift response and hard work of the police. We will continue to assist with the ongoing investigation.
"In the meantime, we advise customers to visit http://talktalk.co.uk/secure for updates and information regarding this incident."
The company urged users to change their passwords and check their bank accounts.
In August the company revealed its mobile sales site was hit by a "sophisticated and co-ordinated cyber attack" in which personal data was breached by criminals.
And in February TalkTalk customers were warned about scammers who managed to steal thousands of account numbers and names from the company's computers.
One security expert said the latest breach could have "serious financial and personal consequences" for TalkTalk's customers and "destroy" trust in phone and broadband provider.
Jason du Preez, chief executive of data privacy company Privitar, said: "These hacks are not just embarrassing to the organisations involved. They can have really serious financial and personal consequences for your users, destroying consumer trust and loyalty."
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