The Federal Trade Commission (FTC) is coming down on Equifax Inc with the strength of an angry kitten. The credit bureau is reportedly expected to pay around $650 million after they exposed the private information of more than 145 million customers in the summer of 2017. The information included names, addresses, driver license numbers, and Social Security numbers.
Equifax waited nearly two months before reporting one of the largest security breaches in U.S. history. Hackers were able to access a security flaw that the company knew of but failed to address. These details are highly sensitive as Mark Begor, who was named Equifax CEO in 2018, admitted recently while being questioned.
.@RepKatiePorter to Equifax CEO: “if you agree that exposing information like what exists in your credit reports creates harm…WHY are your lawyers arguing in federal court that there was no injury & no harm created by your data breach?” pic.twitter.com/fNFUCe4uRY
— AFR (@RealBankReform) February 26, 2019
Equifax Fine is Large, but Not for Equifax
While $650 million may seem like a steep price, it’s not so harsh when you consider that Equifax has a net worth of over $16.5 billion.
Should be put out of business. These fines are laughable. https://t.co/TfEukVNMPf
— David Carroll 🦅 (@profcarroll) July 20, 2019
Federal Consumer Program Director of the U.S. PIRG (Public Interest Research Group), Ed Mierzwinski, called this a “sweetheart deal” for a company that “failed to do its basic job.”
“Failure to protect privacy has a real harm; we think Equifax should have paid real money, not “just go-away” money, and promised real changes to its sloppy last-century practices.”
1/4 Sweetheart deal: 2 years ago @Equifax lost the Social Security Numbers of 148M consumers.