Equifax takes financial hit following data breach scandal

Just like other companies who have suffered a publicised data breach, Equifax’s finances have reportedly taken a hit.

The credit-reporting agency enjoyed share prices at $146.26 in August 2017, but as soon as the breach was made public, the shares reportedly plummeted to just $92.98 in the following month.

Low third-quarter profits may reflect trust issues in the firm after Equifax suffered a data breach that exposed the sensitive information of over 145 million people, including thousands here in the U.K.

Our Data Leak Team are already acting for U.K. victims.

Big money lost?

The Telegraph newspaper reports that net income fell from $132.8 million to $96.3 million (£73 million) compared to last year. After the data breach, Equifax has since reportedly spent $27.3 million on expenses to handle the breach.

The Financial Times magazine also reports that Equifax has scrapped bonuses and buy-backs as the company struggles to pay for the accumulating costs.

About the data breach

The data breach that occurred between May and July 2017 saw the theft of very personal and sensitive information, such as:

News of the data breach infuriated the public as well as authorities and security experts when it was discovered that hackers had simply exploited a known vulnerability in Equifax’s security walls that they had failed to patch-up.

The usual “free credit-monitoring” services offered

After eventually disclosing the breach, Equifax offered victims free credit-monitoring services.

With 145 million people affected, that offer itself will probably have cost Equifax a significant sum.

Other expenses include instructing cybersecurity experts to investigate and patch-up the breach, as well as legal costs that may continue to mount.

A serious breach

Equifax’s data breach compromised important personal data that has potentially put victims at serious risk of crimes like identity theft. Cybercriminals could use the wealth of information stolen to open bank accounts, apply for loans and wreak havoc with credit scores.

This can have a very real and lasting impact on someone’s life.

Testifying in front of U.S. senators, former Equifax CEO, Richard Smith, promised to help affected customers and said that the company was committed to “make it whole” for their customers.

Consumers who have been wronged by a company and have suffered a loss are legally entitled to seek compensation.  Equifax may therefore have to foot the costs of expensive litigation.

Here in the U.K., Equifax admitted that around 400,000 consumers are affected. According to its website, Equifax and its U.K. subsidiary companies are working with BT, Capital One and British Gas.

A number of British consumers have already come forward to us for expert representation.

What are the risks of data theft?

Police data breaches compensation claims