Friday, November 17, 2017

Equifax apologizes again, lays out costs going forward

RECOMMENDED READING


NEW YORK (AP) — A day after posting sizeable profit declines due to a massive data breach, Equifax said it expects to incur related costs of between $60 million and $75 million in the current quarter.

The Atlanta company reported a 27 percent slump in third-quarter profit, largely due to a hack that exposed the personal information of 145 million Americans.

Opening a conference call Friday, interim CEO Paulino do Rego Barros Jr. apologized again for the breach, and said executives will not be receiving bonuses. Richard Smith, who appeared before Congress to explain what happened, stepped down as CEO less than three weeks after the credit report company was hacked.

Equifax Inc. is trying to keep clients from fleeing and also outlined ways in which it is strengthening security.

It revealed Thursday that, in relation to shares sales by executives in the immediate aftermath of the breach, it has now received subpoenas from the U.S. Securities and Exchange Commission and the U.S. Attorney's Office for the Northern District of Georgia, where it is based.

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.

"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.," Barros said. "In each case, we are cooperating with agencies to provide the requested information."

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

So far, more than 240 class actions have been filed by consumers against Equifax in federal, state and Canadian courts relating to the cybersecurity incident. Various other investigations now surround the data breach and the company.

What makes the data breach so dangerous is the information that Equifax holds. Social security numbers, identification, addresses and personal information held by Equifax and the two other, major credit agencies is used to determine a person's creditworthiness.

"We are also working to monitor for the use of storing personal identifiable information, being used for furthering transactions," Barros said Friday. "And to date, we do not have any evidence that we can probably add problem activity to data stolen from Equifax."

___

This story has been corrected to show that Equifax expects to spend up to $75 million, not $75 billion, in the fourth quarter on the data breach.

Comments

Friday's Scores

Friday's Scores
Updated: 4 minutes ago

Watson, Pope lead SDSU to 83-52 victory vs McNeese State

Devin Watson scored 20 points before leaving with a cramp midway through the second half and Malik Pope scored nine of his 16 points during a 24-2 run in the first half that carried San Diego State to a 83-52 victory against McNeese State
Updated: 11 minutes ago
LeBron James scores 39 points, Cavs beat Clippers in OT

LeBron James scores 39 points, Cavs beat Clippers in OT

NBA Capsules
Updated: 20 minutes ago

Wooten paces Oregon's 114-56 victory for Altman's 600th win

Kenny Wooten had 19 points and 13 rebounds, and Victor Bailey scored 18 points to lead Oregon to a 114-56 victory over Alabama State
Updated: 21 minutes ago
Armani Rogers stars in UNLV's 38-35 win over New Mexico

Armani Rogers stars in UNLV's 38-35 win over New Mexico

UNLV's Armani Rogers set a school rushing record for quarterbacks with 193 yards and completed two big passes in the final minute to give the Rebels a 38-35 victory over New Mexico on Friday night
Updated: 1 hour ago
Murray scores 31 as Nuggets beat Pelicans 146-114

Murray scores 31 as Nuggets beat Pelicans 146-114

Jamal Murray had 31 points and the Denver Nuggets had their highest offensive output of the season in a 146-11 win over the New Orleans Pelicans on Friday night
Updated: 1 hour ago
Russia again vetoes extension of chemical experts in Syria

Russia again vetoes extension of chemical experts in Syria

Russia has vetoed a U.N. resolution that would extend for 30 days the mandate of the expert body charged with determining responsibility for chemical weapons attacks in Syria
Updated: 1 hour ago

AP Top News at 1:05 a.m. EST

AP Top News at 1:05 a.m. EST
Updated: 1 hour ago

WKU beats Middle Tennessee with game-winning FG in 3 OT

Ryan Nuss kicked a 37-yarder in the third overtime, and Western Kentucky rallied for a wild 41-38 victory over Middle Tennessee
Updated: 1 hour ago
Devin Booker's 33 points power Suns past Lakers, 122-113

Devin Booker's 33 points power Suns past Lakers, 122-113

Devin Booker hit six 3-pointers while scoring 33 points, and the Phoenix Suns beat the Los Angeles Lakers for the first time in three tries this season, 122-113
Updated: 1 hour ago