![]() ![]() POTENTIAL LEGISLATIONĮquifax disclosed in 2017 that a data breach had compromised the personal information, including Social Security numbers, of 147 million people. ![]() “Equifax must pay a penalty commensurate with the worst data breach in American history,” she added. Speaking to reporters, Federal Trade Commission Chairman Joe Simons said the agency also wanted to impose a monetary penalty, but the law does not allow it to fine companies for their first offense, an issue he has called on Congress to fix.Ī spokeswoman for the Massachusetts attorney general, who along with Indiana, is not participating in the settlement, said its litigation against the company was ongoing. “The settlement provides some compensation right now, but the risk of identity theft is forever,” said Chi Chi Wu, attorney for the National Consumer Law Center. Others questioned whether the fund would be sufficient given the long-term risks of having a Social Security number exposed. He added that consumers should not have to jump through hoops to receive compensation. Public Interest Research Group said in an email. “It’s a parking ticket, not a penalty,” Ed Mierzwinski of the Washington-based U.S. In addition, the company will pay a $175 million fine to the states and $100 million to the CFPB.Ĭonsumer advocates said the settlement was modest given the huge number of people affected. In an interview on Monday afternoon with CNBC, Begor said the fund could be operational by year’s end. Only consumers who can show they suffered direct costs following the breach, either from identity theft or by purchasing credit-monitoring services, will be eligible for restitution, capped at $20,000 per person.Įquifax Chief Executive Mark Begor told reporters Monday he expected that the initial amount, which will also cover the costs of a decade of free credit monitoring for affected consumers, would be sufficient. The company will establish a $300 million restitution fund which could climb to $425 million depending on how many people file claims. They ordered Equifax to set aside funds to repay consumers who spent time or money protecting themselves after the breach. While Equifax said on Monday it saw no evidence the stolen information had been used in identity thefts, regulators said the company failed to protect the data and misled consumers as to how secure it was. Roughly 147 million people had information, including Social Security numbers and driver’s license data, compromised by the breach. Shares in Equifax, which is one of three major credit reporting companies, closed up 0.4 percent at $137.84 a share in trading on the New York Stock Exchange on Monday. It also resolves pending class-action lawsuits against the company. The settlement concludes multiple probes into Equifax by the Federal Trade Commission, the Consumer Financial Protection Bureau and nearly all state attorneys general. Senator Sherrod Brown said in a statement. “This settlement is just a drop in the bucket of what Equifax’s disregard for privacy could cost American families,” Democratic U.S. The agreement also spurred multiple lawmakers to renew calls for legislation giving consumers more control over their personal information. While it was the largest-ever settlement for a data breach, they said the amount was still too small for the millions of Americans affected, and worried it could prove difficult for consumers to be repaid. Anyone who calls, texts, or emails to ask you for your credit card or bank account numbers, or to “help” you get your free credit monitoring is a scammer, which you can report to the FTC at PHOTO: Credit cards, a chain and an open padlock is seen in front of displayed Equifax logo in this illustration taken September 8, 2017. The administrator will not call you about the settlement, but you can reach the administrator by phone at 1-83. Legitimate emails about this settlement will come from Equifax Breach Settlement Administrator. The directions will be in the email or letter, or go to the FTC’s link with settlement details. ![]() The settlement includes up to $425 million to help people affected by the data breach.įor people who signed up for credit monitoring as part of their settlement agreement, it can now be activated. The company has agreed to a settlement with the Federal Trade Commission, the Consumer Financial Protection Bureau, and 50 U.S. Identity Theft Awareness Week: How to protect yourselfĮquifax experienced a data breach in 2017 that exposed the personal information of 147 million people. ![]()
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