Equifax haunted by cyberattack as costs, lawsuits increase

10 November, 2017, 22:36 | Author: Leticia Walters
  • After security breach costs, Equifax clears Q3 with $96M profit

"I have high confidence... we will emerge from this an even stronger company", said interim chief executive Paulino Barros, who was installed after the previous boss resigned.

The credit bureau is also facing more than 60 government investigations from states, USA federal agencies and the British and Canadian governments, the earnings report revealed.

The Atlanta-based company said it recorded $87.5 million in expenses related to the hack during the quarter, including legal fees, investigation of the breach, and free credit monitoring for US consumers whose data was exposed in the breach.

"We're hoping to win back their trust and then be able to regain the business that we've indicated has been deferred", CFO John Gamble said in the call.

Equifax estimated a range of additional costs between $56 million and $110 million to continue providing the free services.

Equifax said it incurred $27.3 million of costs related to the incident last quarter. Equifax has agreed to provide the TrustedID Premier credit monitor to all USA consumers free for one year. Social security numbers, identification, addresses and personal information held by Equifax and the two other, major credit agencies is used to determine a person's creditworthiness.

"Certain of our customers have determined to defer new contracts or projects unless and until we can provide assurances regarding our ability to prevent unauthorized access to our systems and the data we maintain", Equifax said.

Equifax shares (efx) were little changed in midday trading.

Equifax executives are scheduled to take questions from analysts during a conference call on Friday at 8:30 a.m.in NY. U.S. Information Solutions, the firm's largest unit, where Equifax houses its flagship credit database, said revenue dropped 3 percent.

Equifax's net income of $96.3 million was down 27% from $132.8 million a year ago and more than 71% from $165.4 million in the second quarter. The average estimate of 14 analysts surveyed by Bloomberg was for adjusted profit of $1.49 a share.

Equifax needs to do a better job of communicating whether it believes the hackers are still inside its network, said Mark Rasch, a former USA federal cyber-crimes prosecutor who advises businesses on responding to breaches. The company expects revenue of $825 million to $835 million, compared to the average analyst forecast of $833.65 million.



'I Loved Him': Donna Brazile Chokes Up Over Seth Rich
When she finished that investigation, "I had found my proof and what I had found broke my heart", Brazile wrote . She had previously managed Al Gore's 2000 presidential campaign and worked on other races around the country.

Patrice Evra sees Marseille contract terminated after UEFA ban
Evra's ban pertains to all UEFA club competitions, and stretches until June 30, 2018. Marseille chief executive Jacques-Henri Eyraud added: "Today there is sadness".

Duterte Says He Killed Someone At 16, Threatens To Slap UN Official
How much more now that I am president?' Roque also dismissed concerns that Duterte was showing his authoritarian tendencies. Reacting to the two lawmakers' call, Duterte stressed that his war on drugs has only good intentions.

Corn hovers near 1-year low after record USDA yield estimate
Soybean production is forecast at a record 4.43 billion bushels, up 3 percent from past year , down 1 percent from October. Traders and funds gear up to trade the USDA report with volume often sagging thereafter into the U.S.

Mueller probing alleged Flynn plot to extradite Turkish cleric
On November 8, Flynn published an op-ed piece in The Hill that called Gulen "a shady Islamic mullah" and a "radical Islamist". Fethullah Gulen lives in a compound in the small Poconocs town of Saylorsburg, Pennsylvania. .