Equifax to pay $700 million as settlement for 2017 data breach

Author : Pankaj Singh | Published Date : 2019-07-22 

Equifax, Inc., a consumer credit reporting company is reportedly about to close a deal to resolve data breach probes. The firm will pay $700 million to U.S. regulators & states for the case settlement.

 As per credible sources, a 2017 data breach at Equifax exposed nearly 150 million social security numbers of Americans and other sensitive personal information. The firm will pay the amount as a violation settlement with the Consumer Financial Protection Bureau, Federal Trade Commission & state attorneys general.

Reportedly, the breach is amongst the biggest consumer data breaches by one of the largest credit-reporting firms that has exposed big security flaws and raised cybersecurity concerns among policy makers and consumers. Hackers could access Equifax’s systems through a software flaw the company had neglected. A faulty scanning tool enabled hackers to stay undetected in Equifax’s network for months.

As per sources close to the matter, the backlash for the breach was swift. Equifax’s long-serving chief executive retired within a week after the breach was exposed. The Federal and State officials launched a spate of investigations. Lawmakers berated Equifax executives for waiting 6 weeks to disclose the hack after it detected suspicious activity & raised questions about how it handles the consumer data that it collects.

The amount to be paid by Equifax could vary, depending upon the number of claims ultimately filed by consumers. The settlement will require the firm to make more changes on how it handles and protects consumer data. A fund will also be established to compensate consumers for the harm they had sustained as a result of the breach.

Equifax is on track to spend approximately $1.25 billion to gear up its security systems and upgrade technology. In 2018, regulators in several states ordered the company to strengthen its disaster-response protocols, patches and information-security defenses, cite sources close to the matter.

Source credits: https://in.reuters.com/article/equifax-cyber-settlement/equifax-nears-deal-to-pay-about-700-million-to-settle-u-s-data-breach-probes-wsj-idINKCN1UF009


About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

General Motors expects positive results as supply chain strains ease

Published Date: 2021-12-03         Author: Pankaj Singh

Chief Financial Officer of General Motors Co., Paul Jacobson, reportedly stated that the carmaker expects full-year adjusted pre-tax profits to be around USD 14 billion, higher than the previous prediction of USD 11.5 billion to USD 13.5 billion. Strong consumer demand, high vehicle prices, and s... Read More

Global airlines prepping for a new wave of volatility posed by Omicron

Published Date: 2021-12-02         Author: Pankaj Singh

International airlines are reportedly preparing to combat the emerging threat posed by the new variant of coronavirus, Omicron, which might compel them to modify destinations and schedules on short notice and gravitate more towards domestic markets. Although many passengers have already booked tr... Read More

Celltrion to supply COVID-19 antibody therapy to 9 European countries

Published Date: 2021-12-01         Author: Pankaj Singh

South Korean biopharma company Celltrion has reportedly signed agreements with nine European countries to provide Regkirona (regdanvimab), a monoclonal antibody therapy for COVID-19. The European Commission in November granted the drug marketing authorization for adults infected with the virus wh... Read More

© 2021 Fractovia. All Rights Reserved