Tag: Equifax

Equifax to Pay Some Fines and Laugh All The Way To The Bank

Seth Anderson0 comment

Safe - Chicago Board of Trade

 The New York Times reports on the latest slap on the wrist regarding corporate malfeasance and indifference:

The credit bureau Equifax will pay at least $650 million … to end an array of state, federal and consumer claims over a 2017 data breach that exposed the sensitive information of more than 147 million people. The breach was one of the most potentially damaging in an ever-growing list of digital thefts.

The settlement, which was announced on Monday and still needs court approval, would be the largest ever paid by a company over a data breach. The deal requires Equifax to put a minimum of $380.5 million into a restitution fund for American consumers who file claims showing that they were financially harmed.

A portion of that money will pay for lawyers’ fees, but at least $300 million must go to victims, according to settlement documents filed in federal court in Atlanta. If the initial cash is depleted, the company will add up to $125 million more to settle consumers’ claims, bringing the total fund size to more than $500 million.

…

Equifax will pay an additional $175 million in fines to end investigations by 50 attorneys general. Forty-eight states — all except Indiana and Massachusetts, which separately filed their own lawsuits against Equifax — are part of the deal, along with the District of Columbia and Puerto Rico

(click here to continue reading Equifax to Pay at Least $650 Million in Largest Data-Breach Settlement Ever – The New York Times.)

So the government gets a ‘taste’, but individual consumers get spit in their eye. $300,000,000 to be distributed to a portion of 147,000,000 people who Equifax screwed. $2 each. Whooo hooo! Lawyers get plenty of money, average people, not so much.

The fine print is that you have to prove that Equifax harmed you by giving away your social security number, bank info, drivers license, date of birth and whatever else. 

You Wanted Some Privacy

Fortune reports:

Equifax will also pay $20,000 to consumers who can prove that they suffered “fraud, identity theft, or other misuse” because of the data breach. Equifax will also pay them $25 per hour for up to 20 hours of time they had spent trying to safeguard their data. Equifax will also reimburse them for out-of-pocket losses and up to 25% of the cost of Equifax credit or identity monitoring. Exactly how Equifax will require consumers verify their costs is unknown.

 

(click here to continue reading Equifax Settlement: How to Get the Money You’re Owed | Fortune.)

What are the odds that 10% of the consumers who lost their data due to Equifax’s negligence will be able to jump through the proper hoops and reclaim any cash? 

Equifax executive charged with insider trading before data breach made public

Seth Anderson0 comment

Where all hopes sank
Where all hopes sank

Equifax shouldn’t be allowed to exist, there should be some sort of 3 Strikes law for corporations that are rogue entities like Equifax…

Federal prosecutors on Wednesday charged a former Equifax executive with insider trading, alleging that he profited from confidential information about a data breach at the company that compromised sensitive data of 143 million people to make a profit.

Jun Ying, former chief information officer of a U.S. business unit of Equifax, faces both civil and criminal charges from the Securities and Exchange Commission and U.S. Attorney’s Office for the Northern District of Georgia.

”Ying used confidential information to conclude that his company had suffered a massive data breach, and he dumped his stock before the news went public,” Richard R. Best, Director of the SEC’s Atlanta Regional Office, said in a statement.  ”Corporate insiders who learn inside information, including information about material cyber intrusions, cannot betray shareholders for their own financial benefit.”

(click here to continue reading Former Equifax executive charged with insider trading before data breach made public – The Washington Post.)

Everyone is going to have to deal with fallout from the Equifax debacle for years to come, meanwhile, they have not made amends.

 

Equifax Inc. said more U.S. consumers were affected by its large data breach last year than originally disclosed.

 

The company on Thursday said that it identified about 2.4 million U.S. consumers whose names and partial driver’s license information were stolen. The company said the consumers affected “were not in the previously identified” population of cyberattack victims.

 

That brings the total number of U.S. consumers whose personal information was compromised by the breach to 147.9 million, up from 145.5 million previously.

…

The company also reported fourth-quarter earnings rose 40%, to $172 million, beating expectations due to a benefit from the new U.S. tax law and revenue growth in international markets. The U.S. division of Equifax that works closely with banks and other lenders reported a drop in year-over-year revenue, while overall operating expenses rose 8% as the company deals with security improvements and litigation costs.

 

 

(click here to continue reading Equifax Identifies Additional 2.4 Million Affected by 2017 Breach – WSJ.)

Voyeurs and a Handful of Change
Voyeurs and a Handful of Change

Take away their business license, send the executives to jail, or even better, strip them of their citizenship and deport them.

 

Equifax, one of the three main consumer-credit data companies, is paid to spy on and compile all of your personal financial records. The company holds sensitive data on almost every aspect of our lives, yet hackers were able to get past their weak protection systems. This is because you aren’t a customer of Equifax; you are the company’s product. As a result, Equifax has no incentive to provide you with good services. In the wake of the hack, Equifax offered a credit-monitoring tool, but to use it consumers needed to sign an arbitration agreement that said they wouldn’t sue the company. (Equifax has since dropped this requirement after an outcry.)

 

These kinds of arbitration agreements replace courts with a private judicial system of company lawyers, and they have since metastasized across the entire economy. The CFPB recently finalized a rule that would outlaw these mandatory agreements by financial companies starting next year. Among other things, the rule would prevent Equifax from forcing people into arbitration after it goes into effect. Yet under an obscure congressional procedure, Republicans have the ability to repeal this rule with only 50 votes in the Senate. Though they might still do it, they’re having a harder time now, since they would be on the hook for any further abuses.

 

As reported by David Sirota, Equifax was one of the lead companies lobbying against the CFPB rule. But Equifax’s calamitous blunder, more than any white paper, demonstrates the need for strong new regulations to protect our personal data. If the rule survives, we can thank the companies whose own horrible gaffes demonstrated the need for it in the first place.

 

 

(click here to continue reading The Financial Industry Is Its Own Best Enemy | The Nation.)