Equifax breach costs: $114M and counting
- Equifax recorded $114 million in costs related to the cybersecurity incident in 2017, net of insurance recoveries. The amount included costs of breach investigation and remediation, free credit monitoring for customers and legal and professional services, according to the company's 10-K filing. Q4 costs totaled $26.5 million.
- The Equifax breach, disclosed in September, had a negative impact on the company's revenue growth in 2017. However, the company's fourth quarter revenue still increased 4.7% year-over-year, from $801.1 million to $838.5 million in 2017.
- Equifax also announced Thursday that 2.4 million more U.S. consumers were compromised by the breach last year. The company said the majority of these individuals had only names and partial driver's license information exposed.
Equifax reported $87.5 million in costs related to the cybersecurity incident in Q3 2017.
And it isn't done paying for its breach. Costs outside of existing insurance coverage, potential renegotiation of or additional debt or equity financing, a loss of customers, suspension of contracts or withdrawal of data are just a few risks to 2018 revenue and profitability highlighted in the report.
The company is also still tied up in numerous lawsuits, and several more years of revelations, investigations and fallout may be ahead.
Equifax noted in its filing that last year's breach probably emboldened more individuals and groups to target its systems, and a lot of work lies ahead monitoring, mitigating and improving security infrastructure.
Last month, the company announced the hire of a new CISO, Jamil Farshchi, who previously helped set The Home Depot back on track after its major breach in 2014. Farshchi will be responsible for implementing a more robust security strategy for the company
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