equifax logo

Equifax Will Pay At Least $650 Million In Settlement Over 2017 Data Breach

The credit-reporting agency will pay at least $300 million to victims. But it may be difficult for consumers to prove direct losses from identity theft.

Equifax, one of the country’s three major credit-reporting agencies, could pay over $700 million⁠—and will pay at least $650 million⁠—to settle federal, state and consumer lawsuits brought after the sensitive information of more than 147 million people was exposed in a data breach in 2017.

The settlement, which ends pending class-action lawsuits and investigations into the company by the Federal Trade Commission, state attorneys general and the Consumer Financial Protection Bureau, is the largest ever for a data breach. A court still needs to approve the terms of the settlement, The New York Times reported.

If the deal goes through, Equifax will pay $175 million in fines to all 50 states and $100 million to the CFPB, according to CNBC. From there, the company will establish a $380.5 million restitution fund for consumers affected by the breach. A portion of those funds will go to lawyers fees, but at least $300 million must go to victims of the incident, the Times reported.

Depending on how many people are able to demonstrate they were directly harmed by the breach, Equifax will be required to add up to $125 million to the fund and potentially pay over $500 million to consumers alone.

Since the breach was made public in September 2017, lawmakers and regulators have scrutinized Equifax for its slow response to the attack and lax security policies. As part of the deal, the company agreed to improve its security and have its policies evaluated regularly by an outside party. The hackers behind the cyber attack have still not been identified by law enforcement.

“We can be confident that a large number of the compromised users’ sensitive information from the Equifax breach is still actively in use in account takeover attacks,” Deepak Patel, a security evangelist with cybersecurity company PerimeterX, said. “Cybercriminals can combine data from different breaches - for example, name and address from one with the date of birth and password from another - to increase the success rate of credential stuffing.”

After a court order approves the settlement, consumers will be able to file for free credit monitoring and identity restoration services through an official website. In addition, people directly affected by the breach can submit documents showing the misuse of their personal information, their out-of-pocket losses and expenses related to credit or identity monitoring services. Equifax will pay up to $20,000 for those claims.

But it may be difficult to prove direct losses from identity theft, particularly because information stolen via the Equifax breach has never been found for sale on the dark web, according to CNBC. The New York Attorney General’s office said it will enforce a rule that allows Americans who have been the victim of identity theft from any breach after the Equifax incident to apply for out-of-pocket reimbursements.

In order to qualify, consumers will need a paper trail proving lost funds and time they spent filing disputes over the theft. The time spent dealing with the breach will be compensated at $25 per hour for up to 20 hours, CNBC reported.

“Equifax put profits over privacy and greed over people, and must be held accountable to the millions of people they put at risk,” Letitia James, the New York attorney general, said in a statement. “Now it’s time for the company to do what’s right and not only pay restitution to the millions of victims of their data breach, but also provide every American who had their highly sensitive information accessed with the tools they need to battle identity theft in the future.”

Massive corporate data breaches are now regular events around the world, and other companies are facing stiff penalties from government regulators. British Airways and Mariott International were recently hit with record fines under the General Data Protection Regulation law that went into effect in 2018.

“When the Equifax and British Airways breaches happened in 2017, it seemed like regulators would let them off easy with a slap on the wrist,” Patel said. “But the FTC and GDPR are imposing meaningful fines to hold these large corporations accountable for breaches involving sensitive user data.”

Featured

  • Allegion, Comfort Technologies Implement Mobile Credentials at the Artisan Apartment Homes in Florida

    Artisan Apartment Homes, a luxury apartment complex in Dunedin, Florida, recently transitioned from mechanical keys to electronic locks and centralized system software with support from Allegion US, a leading provider of security solutions, technology and services, and Florida-based Comfort Technologies, which specializes in deploying multifamily access control, IoT devices and software management solutions. Read Now

  • Mall of America Deploys AI-Powered Analytics to Enhance Parking Intelligence

    Mall of America®, the largest shopping and entertainment complex in North America, announced an expansion of its ongoing partnership with Axis Communications to deploy cutting-edge car-counting video analytics across more than a dozen locations. With this expansion, Mall of America (MOA) has boosted operational efficiency, improved safety and security, and enabled more informed decision-making around employee scheduling and streamlining transportation for large events. Read Now

  • Security Industry Association Launches New “askSIA” AI Tool

    The Security Industry Association (SIA) has unveiled a brand-new SIA member benefit – askSIA, a conversational AI agent designed to help users get the most out of their SIA membership, easily access SIA resources and find the latest information on SIA’s training and courses, reports and publications, events, certification offerings and more. SIA members can easily find askSIA by visiting the SIA homepage or looking for the askSIA icon in the top left of webpages. Read Now

    • Industry Events
  • Industry Embraces Mobile Access, Biometrics and AI

    A combination of evolving workplace dynamics, technology innovation and new user expectations is changing how people enter and interact with physical spaces. Access control is at the heart of these changes. Combined with biometrics and AI, mobile access control has become increasingly crucial for deploying entry solutions that are seamless, secure and adaptive to user needs. Read Now

  • Sustainable Video Solution Delivered for Landmark City of London Office Development

    An advanced, end-to-end video solution from IDIS, with a focus on reducing waste and costs, has helped a major office development in the City of London align its security with sustainability objectives. Read Now

New Products

  • Automatic Systems V07

    Automatic Systems V07

    Automatic Systems, an industry-leading manufacturer of pedestrian and vehicle secure entrance control access systems, is pleased to announce the release of its groundbreaking V07 software. The V07 software update is designed specifically to address cybersecurity concerns and will ensure the integrity and confidentiality of Automatic Systems applications. With the new V07 software, updates will be delivered by means of an encrypted file.

  • QCS7230 System-on-Chip (SoC)

    QCS7230 System-on-Chip (SoC)

    The latest Qualcomm® Vision Intelligence Platform offers next-generation smart camera IoT solutions to improve safety and security across enterprises, cities and spaces. The Vision Intelligence Platform was expanded in March 2022 with the introduction of the QCS7230 System-on-Chip (SoC), which delivers superior artificial intelligence (AI) inferencing at the edge.

  • ResponderLink

    ResponderLink

    Shooter Detection Systems (SDS), an Alarm.com company and a global leader in gunshot detection solutions, has introduced ResponderLink, a groundbreaking new 911 notification service for gunshot events. ResponderLink completes the circle from detection to 911 notification to first responder awareness, giving law enforcement enhanced situational intelligence they urgently need to save lives. Integrating SDS’s proven gunshot detection system with Noonlight’s SendPolice platform, ResponderLink is the first solution to automatically deliver real-time gunshot detection data to 911 call centers and first responders. When shots are detected, the 911 dispatching center, also known as the Public Safety Answering Point or PSAP, is contacted based on the gunfire location, enabling faster initiation of life-saving emergency protocols.