Equifax to pay $700 million in 2017, data breach, and compensate the consumers

WASHINGTON (Reuters) – a Credit-reporting company Equifax Inc (EFX.(N) pay up to $700 million to settle federal and state probes into a huge, 2017, in violation of the security of the personal information of those who made the round of the 147 million consumers, the government said on Monday.

FILE PHOTO: the use of Credit cards, a chain and an open padlock to the front side of the display Equifax logo, in this picture, the 8th of September 2017. REUTERS/dado Ruvic/Illutration

The largest-ever settlement for a data breach is approaching a multi-probe Equifax Federal Trade Commission, the Consumer Financial Protection Bureau, and virtually all state attorneys general. It is also in a pending class-action lawsuits against the company.

Equifax shares rose 1.2 percent to $138.88) in the morning trade.

“This is nonsense, and neglect, and the laid-back norms for the protection of threatened species, the identity of the other half of the AMERICAN people,” the New York state Attorney General, Letitia James, said in a statement.

Under the settlement, the company will pay a $175 million penalty to the united states, and $100 million for the WORK.

The company also has a $300 million refund from the fund to adversely affected consumers, who are able to climb to a total of $425 million, depending on how many customers make use of it. While about half of all Americans have had their information compromised, and the return fund is only available to customers who are able to demonstrate that they have suffered direct costs from the breach, or, if the victim of the fraud, or by setting up credit-monitoring services.

The affected customers will also be eligible for up to 10 years of free credit monitoring from Equifax and the company has agreed to make it easier for consumers to freeze their credit cards or dispute the incorrect information in the credit reports.

The supervisors on Monday, said Equifax broke the law on the protection of consumers, unfair and deceptive practices by failing to provide reasonable security to its vast quantities of sensitive, personal data is stored, and the misleading of consumers regarding the strength of the security of the data of the program

Equifax, one of the three major credit-reporting companies, referred to in 2017, that a security breach had compromised the personal information, including social security numbers, out of a total of 143 million Americans. Include Canadian customers, and for approximately 147 million consumers were affected in total.

The hackers behind the breach have never been identified by authorities.

It is a scandal and sent the company into turmoil, leading to the exit of the former chief executive, Richard Smith, and if the slowness in the publication of the infringement, as well as the security measures that have been challenged by legislators and policy-makers.

She did not know how the companies are able to gather so much personal data on the go and in an effort to enhance the consumer, to better protect and manage their information. The Senate Banking Committee is working on legislation that would require companies to have a better level of protection of the information.

“I am very pleased to see that the clients who have been harmed as a result of Equifax’s bad cybersecurity practices will have to see what the compensation is, we need structural reforms and increased oversight of credit reporting agencies in order to ensure that this never happens again,” Democratic Senator Mark Warner said in a statement.

Equifax’s new chief executive officer, Mark Begor, said the settlement was a “positive step” for the company, which would allow it to focus on investing in technology and security. Equifax, and took a $690 million in the first quarter to cover the expected fines.

As part of the settlement, the company has also agreed to the strengthening of the security and its policies are regularly reviewed by a third party.

Report by Pete Schroeder; Editing by Peter Cooney, Susan Heavey and Nick Zieminski and Jonathan Oatis

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