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Equifax Agrees to Pay $650 Million Settlement for Data Breach

posted by martyb on Monday July 22 2019, @10:26PM   Printer-friendly
from the A-stolen-identity-is-worth-about-$5 dept.

takyon writes:

Equifax to Pay at Least $650 Million in Largest Data-Breach Settlement Ever

The credit bureau Equifax will pay at least $650 million and potentially significantly more to end an array of state, federal and consumer claims over a data breach two years ago that exposed the sensitive information of more than 148 million people. The breach was one of the most potentially damaging in an ever-growing list of digital thefts.

The settlement, which was announced on Monday and still needs court approval, would be the largest ever paid by a company over a data breach. The deal requires Equifax to put a minimum of $380.5 million into a restitution fund for American consumers who file claims showing that they were financially harmed.

A portion of that money will pay for lawyers' fees, but at least $300 million must go to victims, according to settlement documents filed in federal court in Atlanta. If the initial cash is depleted, the company will add up to $125 million more to settle consumers' claims, bringing the total fund size to more than $500 million.

Also at: Ars Technica.

Previously:
Lawsuits Aim Billions in Fines at Equifax and Ad-Targeting Companies
The True Cost of a Data Breach
Equifax Admits 2.5 Million More Americans Were Affected by Cyber Theft
Equifax Data Breach Could Affect 143 Million Americans [Updated]

Original Submission

 
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  • (Score: 3, Funny) by Anonymous Coward on Monday July 22 2019, @10:45PM (2 children)

    by Anonymous Coward on Monday July 22 2019, @10:45PM (#870114)

    I'm going to spend mine on hookers and blow.

    • (Score: 1) by khallow on Tuesday July 23 2019, @03:11AM

      by khallow (3766) Subscriber Badge on Tuesday July 23 2019, @03:11AM (#870188) Journal
      The lawyers did well by it.

    • (Score: 3, Insightful) by stretch611 on Tuesday July 23 2019, @08:59AM

      by stretch611 (6199) on Tuesday July 23 2019, @08:59AM (#870252)

      It will be sent to victims in the form of a coupon offering $2 off a year of equifax's credit monitoring service.

      --
      Now with 5 covid vaccine shots/boosters altering my DNA :P

  • (Score: 1) by fustakrakich on Monday July 22 2019, @11:12PM (1 child)

    by fustakrakich (6150) on Monday July 22 2019, @11:12PM (#870123) Journal

    Anyone placing bets on whether the breach is still running?

    --
    La politica e i criminali sono la stessa cosa..

    • (Score: 3, Touché) by stretch611 on Tuesday July 23 2019, @09:01AM

      by stretch611 (6199) on Tuesday July 23 2019, @09:01AM (#870253)

      I'll bet my $2 that the original breach is no longer running.

      However, I will bet the winnings of that bet that a new breach has replaced it and is active.

      --
      Now with 5 covid vaccine shots/boosters altering my DNA :P

  • (Score: 3, Insightful) by DavePolaschek on Monday July 22 2019, @11:52PM (1 child)

    by DavePolaschek (6129) on Monday July 22 2019, @11:52PM (#870136) Homepage Journal

    The FTC intentionally kept the damages small enough to not kill Equifax. Cranking it up to 300 billion or so would be closer to a corporate death penalty. Only way to be sure.

    • (Score: 2, Insightful) by khallow on Tuesday July 23 2019, @03:09AM

      by khallow (3766) Subscriber Badge on Tuesday July 23 2019, @03:09AM (#870187) Journal
      Too big to fail in multiple ways. A corporate death penalty means the industry gets disrupted and maybe consolidated into an even smaller cartel. They're not willing to call anyone's bluff there.

  • (Score: 3, Insightful) by c0lo on Tuesday July 23 2019, @12:19AM (5 children)

    by c0lo (156) Subscriber Badge on Tuesday July 23 2019, @12:19AM (#870142) Journal

    The deal requires Equifax to put a minimum of $380.5 million into a restitution fund for American consumers who file claims showing that they were financially harmed.

    $380.5M / 148M people < $2.4/person. Only the cost of "showing financial harm" far exceeds the restitution => fines are no longer a punishment, to act as reparations or as deterrent.

    What we are seeing can be described as "the normalization of fines as cost of doing business".
    Old satire [youtube.com] is long overtaken by the reality.

    --
    https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford

    • (Score: 2) by PartTimeZombie on Tuesday July 23 2019, @12:30AM (4 children)

      by PartTimeZombie (4827) on Tuesday July 23 2019, @12:30AM (#870146)

      It is probably just your standard regulatory capture.

      Nothing unusual here.

      • (Score: 2) by c0lo on Tuesday July 23 2019, @01:03AM (3 children)

        by c0lo (156) Subscriber Badge on Tuesday July 23 2019, @01:03AM (#870154) Journal

        It is probably just your standard regulatory capture.

        Don't blame me, I didn't capture anything (grin)

        Nothing unusual here.

        Naming it "regulatory capture" doesn't take it outside the more general "corruption" phenomenon.
        It's nasty what corruption does to society when it gets over a certain level (one of the reason I chose to emigrate).

        --
        https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford

        • (Score: 2) by PartTimeZombie on Tuesday July 23 2019, @01:15AM (2 children)

          by PartTimeZombie (4827) on Tuesday July 23 2019, @01:15AM (#870160)

          I promise to stop blaming you for this in future.

          You're right, regulatory capture is just another example of corruption, but it is pretty common in western countries and just something we will have to live with, at least until the revolution comes. ;-)

          • (Score: 2) by c0lo on Tuesday July 23 2019, @01:43AM (1 child)

            by c0lo (156) Subscriber Badge on Tuesday July 23 2019, @01:43AM (#870166) Journal

            I promise to stop blaming you for this in future.

            Good. 'cause anyone in my dungeon is there consensually (grin)

            and just something we will have to live with, at least until the revolution comes. ;-)

            Used to somewhat work in the old days, on the lines of:

            Now the rabble wouldn't have it, they was angry with me
            They built a big old razor called the guillotine

            But I don't think is going to work as such today. Not against the actual captors anyway.

            --
            https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford

  • (Score: 0) by Anonymous Coward on Tuesday July 23 2019, @12:43AM

    by Anonymous Coward on Tuesday July 23 2019, @12:43AM (#870149)

    a pay-for-credit-rating product.

  • (Score: 0) by Anonymous Coward on Tuesday July 23 2019, @07:48PM

    by Anonymous Coward on Tuesday July 23 2019, @07:48PM (#870442)

    I guess hiring music composition major Susan Mauldin to be Equifax's chief information security officer was a bad idea. Who could have guessed?

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