Published: Tue, July 23, 2019
Finance | By Kristine Clayton

Idaho announces $600 million settlement with Equifax over 2017 data breach

Idaho announces $600 million settlement with Equifax over 2017 data breach

The compromised data included Social Security numbers, birth dates, addresses, driver license numbers, credit card numbers and in some cases, data from passports.

Customers of Equifax who suffered damaged by a data breach at the credit monitoring company will be able to collect up to $20,000 under a settlement announced Monday by the Federal Trade Commission.

The program to pay restitution to consumers will be conducted in connection with settlements that have been reached in the multi-district class actions filed against Equifax, as well as settlements that were reached with the Federal Trade Commission and Consumer Financial Protection Bureau.

The agreement, the largest data-security settlement by the agency, resolves a almost two-year investigation by all 50 states and the FTC into the massive breach that compromised sensitive information like Social Security numbers and dates of birth.

"Equifax failed to take basic steps that may have prevented the breach that affected approximately 147 million consumers", he added.

The rest of the money will be divided between 50 U.S. states and territories and a penalty paid to the Consumer Financial Protection Bureau (CFPB).

Under the deal, consumers whose data was exposed can get up to 10 years of free credit-monitoring and other services.

The biggest part of the compensation takes the form of a cash payment of up to $20,000 which can be claimed per consumer covering expenses related to the breach.

British Airways faces record fine for data breach Information Commissioner's Office intends to fine airline for "poor security arrangements" - British Airways says it's "surprised and disappointed" by planned penalty. "Equifax must pay a penalty commensurate with the worst data breach in American history", she added.

Maryland state attorney general Brian Frosh said the breach was troublesome because most consumers did not know their data was being collected or consent to it. The first four years will include reports from the top three bureaus - Equifax, Experian and TransUnion - and $1 million in identity theft insurance. For minors, free credit monitoring increases to 18 years.

For now, no dates have been set as to when the claims process will open and when consumers can expect to receive their benefits.

"Credit freezes are actually better and they're free under the law", he explains.

Specifically, the FTC claimed the Equifax had no policy to ensure security vulnerabilities were patches, no database segmentation to block access to other parts of the network if a database was breached, and no robust intrusion detection protections for legacy databases.

"I'm pleased to announce this result for Idahoans, as Equifax failed to protect their sensitive data", Wasden said.

Consumers who are eligible for redress will have to submit a claim online.

Equifax generated $3.4 billion in revenue in 2017 and $3.81 billion in revenue in 2018, according to its financial filings.

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