- The Washington Times - Friday, November 10, 2017

The Equifax data breach that compromised the personal information of roughly 145 million Americans this year will likely cost the company upwards of $140 million in 2017, according to the credit rating agency.

Equifax said in a fourth-quarter profit outlook released Friday that it expects the data breach disclosed in September will hurt sales and result in costs of between $60 million and $75 million, Reuters reported.

The company said in a third-quarter report released a day earlier that the breach was responsible for about $87.5 million in related expenses that period, including investigative and legal fees as well as expenses related to offering free protection to affected customers.

“We’re hoping to win back their trust and then be able to regain the business that we’ve indicated has been deferred,” Equifax Chief Financial Officer John Gamble said Friday, Reuters reported. “We’re still working through that process.”

“We recognize that we have an important journey in front of us to regain the trust and confidence of consumers and our business customers,” said Paulino do Rego Barros Jr., the firm’s interim CEO.

The breach will likely cut revenue by 3 percent to 4 percent in the fourth quarter, according to Reuters, and executives won’t be receiving bonuses for 2017 “because of the cybersecurity incident,” Mr. Barros said.

Equifax announced on September 7 that an online vulnerability had been exploited causing the company to lose control of personal data pertaining to roughly 145 million customers, including names, Social Security numbers and birth dates, among other sensitive data.

The company is currently facing more than 240 lawsuits related to the breach and investigations launched by state and federal authorities, including 50 state attorneys general, the Federal Trade Commission, the Consumer Financial Protection Bureau and the Securities and Exchange Commission.

“We have received requests for information and subpoenas for a number of United States and Federal Regulatory Agencies and several regulatory agencies outside the U.S.,” Mr. Barros said Friday, The Associated Press reported. “In each case, we are cooperating with agencies to provide the requested information.”

An internal review of the data breach is ongoing.

LOAD COMMENTS ()

 

Click to Read More

Click to Hide