Equifax, one of the nation’s 3 largest Credit Bureaus, is expected to reach a $650 million settlement over consumer claims associated with a data breach that affected 145 million people.
A breach in Equifax’s database in September 2017 led to the release of both the Social Security and Driver’s License numbers of millions of Americans. The data breach led to the abrupt departure of its chief executive and attracted condemnation from lawmakers and the public.
The breach occurred over the court of many months through a software vulnerability known internally by the company but left unaddressed. Currently, law enforcement is unaware of who stole the data and how the stolen data has been used.
Equifax set aside $690 million for the legal fees and other associated costs expected to arise from settling the claims from the data breach. Most the settlement would go towards compensating consumers whose information was released.
State regulators have already imposed new regulations on Equifax after the data breach. All regulations are focused on making sure the credit bureau’s information is more secure. Equifax will now have to conduct security audits at least once a year, develop more stringent data protection policies and improve its software management controls.
The settlement is the latest in a long line of repercussions that Equifax has faced because of its enormous data breach. Read full story here.