A cyber attack on a major credit reporting agency could have exposed over 143 million consumer credit reports to hackers this week.
Credit giant Equifax gathers data from a variety of sources, including banks, mortgage companies, credit card companies and collections agencies, maintaining credit files on almost every adult citizen in the United States. The breach allowed criminals to access records from over 40% of the population, and occurred between May and July of this year.
The news broke in early September and Equifax faces lawsuits, congressional questions and media scrutiny in the aftermath of the attack. The implications for private consumers are still in question, so let’s take a look at how you may be affected.
What Data Was Accessed?
The hacked data contained critical information that could allow a criminal to assume the identity of a victim, including full names, birth dates, driver’s license numbers, Social Security numbers and more, according to a statement released by Equifax in September.
Over 200,000 consumers also had actual credit card numbers exposed, along with dispute documents and personal information of other types. Most consumers were in the United States, but some information was also leaked on UK and Canadian consumers.
“This is clearly a disappointing event for our company, and one that strikes at the heart of who we are and what we do,” Equifax Chairman and CEO Richard Smith said in a statement issued last week. “I apologize to consumers and our business customers for the concern and frustration this causes.”
The Aftermath
Once the breach was discovered and consumers were notified, Equifax posted additional information for investors, in Q & A form on their site. As news of the cyber attack began to spread, shares of Equifax stock also tumbled; EFX dropped 9%, ending at $130.05 when the news hit the mainstream media.
The cyber attack wasn’t the only newsworthy piece of information to come from Equifax in early September. Recent regulatory filings revealed that the company’s CFO and two top executives sold their personal Equifax stock just after the 29th of July, the day the breach was discovered.
According to USA Today. CFO John Gamble sold almost $1 million in Equifax stocks, while two other executives sold $600,000 and $250,000 in Equifax stock after the breach. The timing of the sales is questionable, as the executives chose to sell off stock when they were aware of a breach, but before the news was made public.
What Happens to Consumers?
Equifax launched an internal investigation, and is working with law enforcement to determine how the breach occurred and to prevent future attacks. The company also set up a new website to allow consumers to see if their data was impacted by the breach:www.equifaxsecurity2017.com.
According to Equifax, the site will offer free identity theft and credit monitoring for one year; Experian and Transunion reports will be monitored at no charge, alongside the consumer’s Equifax report. The company also plans on mailing notices to those who were impacted by the breach via the US postal service.
Equifax Under Fire
While the company has announced it took steps to protect consumer data and prevent further attacks, at least 23 class action lawsuits have been filed in Federal court in the last week.
The company also faces questions from the Senate Committee on Finance prepared by Senators Orrin Hatch (R-Utah) and Ron Wyden (D-Oregon). The committee is requesting a timeline of the breach and details about the aftermath, along with an outline of the steps Equifax is taking to limit the impact the breach will have on consumers.
According to the FBI, cyber attacks on individuals and companies of all sizes are on the rise; the Equifax breach is one of the largest yet, but other victims include Target, local school districts and even healthcare facilities.
While you can’t prevent a cyber attack on the scale of this one alone, carefully monitoring your credit can help you spot the signs of trouble and ensure you are not impacted by the breach. Equifax promises to send letters to those affected, but a careful review of your own credit and reporting data can help reveal if you have been victimized and will allow you to take swift action.
Regards,
Ethan Warrick
Editor
Wealth Authority
