Economy

Equifax calculates massive data breach will cost company at least $140 million

Equifax calculates massive data breach will cost company at least $140 million

Equifax Inc reports quarterly financial results on Thursday, after the market close, for the first time since disclosing it was the target of a massive data breach that exposed deeply sensitive information on 145.5 million people. Equifax has agreed to provide the TrustedID Premier credit monitor to all US consumers free for one year. The company also said it's facing more than 240 class-action lawsuits and more than 60 regulatory or governmental inquiries.

The FREE Act would also prevent credit reporting agencies from profiting off of consumers' information during a freeze, enhance fraud alert protections, and provide the opportunity for consumers to receive an additional free credit report following the Equifax data breach. Furthermore, you reported that only 30 million individuals have utilized the website Equifax created as the primary means by which consumers can learn if they were impacted and access the limited services your company is offering to help them protect themselves. "We can not assure that all potential causes of the incident have been identified and remediated and will not occur again", it said in a quarterly filing with the Securities and Exchange Commission.

Word of the subpoenas arrived one week after the company said that an internal review, done by a special committee of independent directors, found that four executives who had sold a combined $1.8 million worth of shares in the immediate aftermath of the breach had done nothing wrong.

Eric Johnson, dean of Vanderbilt University's Owen Graduate School of Management, said that uncertainty could cost Equifax future business.

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The company said Thursday that it had recorded $87.5 million in costs related to the breach in the last quarter.

That includes the costs to investigate the hack, legal fees and expenses for offering consumers free credit file monitoring and identity theft protection to its US consumers. The company expects revenue of $825 million to $835 million, compared to the average analyst forecast of $833.65 million. The stock is down around 24 percent since September 7, when Equifax disclosed the breach. Profits, however, were down 27 percent from the previous year at $96.3 million - in large part due to the breach.

Shares of Equifax, which reported after the closing bell, were down a penny in aftermarket trading at $108.94.


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