Equifax to pay $700 million in breach settlement

Andrew Cummings
July 22, 2019

Equifax Inc is poised to reach a roughly US$700 million deal to settle investigations into its massive data breach, in line with what the credit-reporting company previously set aside for the incident, according to a person with knowledge of the matter.

Equifax did not immediately respond to CNN Business' request for comment.

The scandal led to the resignation of the company CEO and to a Congressional hearing during which lawmakers grilled executives about the company's handling of consumer data and its inability to report the breach in a timely fashion.

The amount to be paid by the company could change depending on the number of claims eventually filed by consumers, according to the report, which added that the settlement could be announced as soon as Monday.

Sources familiar with the matter told The Wall Street Journal that Equifax will pay almost $700 million to the Federal Trade Commission, the Consumer Financial Protection Bureau and most state attorneys general to resolve the matter.

Facepalm: Hackers were able to exploit an unpatched security flaw in Equifax's systems and thanks to a malfunctioning scanning tool, they were able to avoid detection for months.

Equifax failed to notice the breach for several weeks. The money would also go towards resolving a consumer class-action lawsuit against the company, The Wall Street Journal reported Friday afternoon.

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