September 14, 2017
By now, we’re all familiar with the Equifax data breach, which resulted in compromised personal information of nearly half the country, or 143 million Americans. Due to sensitivity of the content compromised, this breach marks the worst of its kind to date. Over the last week, experts have come out with suggestions of what to do, such as freezing your credit file at the major credit bureaus, and government officials have been quick to respond with public statements and plans of action.
New York AG Eric Schneiderman has already opened a probe to investigate the breach and several other offices will likely follow suit. Additionally, there are now at least three planned House committee hearings related to the Equifax breach.
While many insurance execs see the Equifax breach as an opportunity for new business, it appears Equifax’s cyber insurance policy is likely inadequate to cover the costs of the breach. Not to mention, the company’s stock is plummeting and more than 30 lawsuits have been filed against Equifax since the breach was announced last Thursday.
Equifax announced that criminals began accessing consumer data as far back as May and reportedly discovered the breach in late June. However, it took the company nearly three months to disclose the breach. On top of that, three top executives sold nearly $1.8 million in stock shortly after the firm initially discovered the breach. Interestingly, the company insisted that those executives were unaware of the breach when they made the sale.
Times are tough for the consumer credit reporting agency with no clear signs ahead; lawmakers have vowed that someone will pay the price. While the company’s future is uncertain, you can guarantee that questions will be answered.