Massive data breach has cost Equifax nearly $90 million

SAN FRANCISCO — A massive security breach that hit Equifax has cost the US credit bureau nearly $90 million so far, a figure that is set to rise further, its chief financial officer said on Thursday.

The company, which gathers data on consumers to help lenders determine borrowers’ creditworthiness, revealed in September that hackers had stolen the personal details, including names, dates of birth and social security numbers, of nearly 146 million people.

In the third quarter, “we incurred a one-time charge related to the cybersecurity incident of $87.5 million,” John Gamble said during a conference call on quarterly results.

Equifax is forecasting between $60 and $75 million in spending that will include information technology security in the fourth quarter, he said.

In addition to the expenses, the group’s earnings have also been affected, particularly due to customer dissatisfaction, Equifax said.

Its net income fell 27 percent to $96.3 million in the third quarter.

Equifax also said in a document sent to the US Securities and Exchange commission that it is the subject of 240 class-action lawsuits in the US and Canada as well as more than 50 investigations in the US, Canada and Great Britain.

It did not quantify the possible financial impact of the lawsuits.

Equifax interim CEO Paulino do Rego Barros said that following the security breach, its senior leadership will not receive bonuses this year.

Its CEO Richard Smith resigned in late September, as did two other Equifax executives, its chief information officer and chief security officer.

source: business.inquirer.net

Get a Free Credit Score From Your Bank

Big banks are jumping on the bandwagon to provide free credit scores to their customers. The majority are offering FICO scores, the most commonly used measure of creditworthiness among lenders. Citi­bank says that most of its consumer cardholders can now go online to see their FICO scores. Bank of America says it will provide FICO scores to its consumer card users later this year. Ally Financial is conducting a pilot program to supply FICO scores to its car-loan customers; a full launch is planned for this summer. Those three issuers join Barclaycard, Discover, Pentagon Federal Credit Union and Sallie Mae, which already offer FICO scores.

QUIZ: Will It Sink Your Credit Score?

 

Depending on your lender, you may be able to see your score on your monthly statement, by logging in to your account online, or by viewing it on a mobile app. Your lender may also include a 12-month history of your score and key factors affecting it. Keep in mind that the scale a lender uses to evaluate your credit profile may differ from the standard FICO range of 300 to 850. Citibank, for example, provides a score based on a scale of 250 to 900.

Not all of the free scores are FICO scores. USAA says that by summer it will provide all its credit card customers with their VantageScore—a score developed by the three major credit agencies (Equifax, Experian and TransUnion). Some sites, such as Mint.com, Credit.com and CreditKarma.com, will also show you free scores from the major credit agencies. Even when scores aren’t the same ones used by your lenders, they are useful indicators of your credit health. And don’t forget to check your credit report. You can get a free look once a year from each of the credit agencies at www.annualcreditreport.com.

source: kiplinger.com