‘It is not possible to estimate the amount of loss or range of possible loss.’
Equifax reported that revenue ticked up 4% year-over-year in the third quarter to a less-than expected $835 million and that net income plunged 27% to $96 million due to the initial costs related to the most damaging consumer data hack in US history. But it also disclosed in the fine print of its SEC filing just what a legal and financial nightmare it is getting into over what it calls the ‘cybersecurity incident.’
The ‘cybersecurity incident’ occurred in mid-May, was discovered in July, and was first disclosed on September 7. Its dimensions have since expanded. It compromised the personal-data crown jewels, including Social Security numbers, of 145.5 million US consumers, credit card numbers of 209,000 US and Canadian consumers, ‘certain dispute documents with personal identifying information’ for 182,000 US consumers, personal information of 8,000 Canadian consumers, and personal information of at least 690,000 UK consumers.
The initial expenses related to the ‘cybersecurity incident’ were an undramatic $27.3 million. But that’s just the timid beginning.
Then the costs related to the ‘free credit file monitoring and identity theft protection’ will likely range between $56 million and $110 million. And that too is just the beginning.
This post was published at Wolf Street on Nov 10, 2017.