STREAMING NOW: Watch Now

Equifax exposed 150 million Americans' personal data. Now it will pay up to $700 million

Credit reporting agency Equifax has reached a deal to pay up to $700 million to state and federal regulators to settle probes stemming from a data breach tha...

Posted: Jul 23, 2019 3:55 AM
Updated: Jul 23, 2019 3:59 AM

Credit reporting agency Equifax has reached a deal to pay up to $700 million to state and federal regulators to settle probes stemming from a data breach that exposed the personal information of nearly 150 million people. It will be the largest settlement ever paid for a data breach.

The Federal Trade Commission announced Monday that Equifax will pay at least $300 million and as much as $425 million to compensate affected people with credit monitoring services. That money will go into a fund that will also reimburse people who purchased credit- or identity-monitoring services because of the 2017 data breach. The amount of the settlement could change depending on the number of claims still to be filed by consumers.

Equifax will also pay $275 million in civil penalties and other compensation to 48 states, Washington, Puerto Rico and the Consumer Financial Protection Bureau.

The deal also requires more changes to how Equifax handles private user data. For example, the company will have to adjust its information security protocols, including annual assessments of security risks and receiving the board's certification attesting that the company has complied with the FTC's order.

The FTC alleges Equifax violated the agency's prohibition against unfair and deceptive practices. The FTC said Equifax failed to properly safeguard peoples' personal information despite claiming in its privacy policy that it implemented "reasonable physical, technical and procedural safeguards" to protect their data.

"Companies that profit from personal information have an extra responsibility to protect and secure that data," said FTC Chairman Joe Simons in a statement. "Equifax failed to take basic steps that may have prevented the breach."

The hack, the largest in US history, exposed sensitive information, including names, Social Security numbers, drivers' license numbers and addresses.

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

Equifax first disclosed the hack in September 2017, three months after the company discovered the breach.

Hackers leveraged a security flaw in a tool designed to build web applications to steal customer data. Equifax admitted it was aware of the security flaw a full two months before the company says hackers first accessed its data.

The data breach prompted the resignation of CEO Richard Smith and investigations by federal regulators, multiple states attorneys general and the company faces a number of civil lawsuits.

Oregon Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 21488

Reported Deaths: 357
CountyConfirmedDeaths
Multnomah496096
Washington311925
Marion293870
Umatilla230228
Clackamas154940
Malheur80414
Deschutes61110
Lane5903
Jackson4732
Yamhill46713
Lincoln4189
Union3942
Morrow3723
Jefferson3714
Polk31912
Linn28410
Klamath2012
Hood River1930
Wasco1923
Benton1696
Douglas1511
Josephine1152
Columbia970
Coos910
Clatsop850
Crook491
Baker400
Tillamook340
Lake320
Wallowa191
Sherman160
Curry150
Harney100
Gilliam40
Grant40
Unassigned00
Wheeler00

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 574231

Reported Deaths: 10476
CountyConfirmedDeaths
Los Angeles2105434998
Riverside41983820
Orange40527726
San Bernardino36072546
San Diego32975594
Kern24440171
Fresno17846171
Alameda13631209
San Joaquin12864223
Santa Clara12694205
Sacramento12040177
Tulare10862196
Stanislaus10264169
Imperial9693244
Contra Costa9404139
Ventura863492
San Francisco762367
Santa Barbara670469
San Mateo6318120
Merced573670
Monterey544635
Marin540481
Kings445356
Solano427441
Sonoma367047
Madera246339
Placer231922
San Luis Obispo225416
Yolo183444
Santa Cruz12436
Butte12388
Napa107411
Sutter9527
San Benito7654
El Dorado7552
Lassen6830
Yuba6464
Mendocino47210
Shasta45910
Colusa3914
Glenn3603
Nevada3571
Humboldt2864
Tehama2761
Lake2402
Amador1822
Mono1581
Tuolumne1553
Calaveras1471
Inyo1063
Siskiyou1020
Del Norte1000
Mariposa622
Plumas360
Modoc50
Trinity50
Sierra40
Alpine20
Unassigned00
Medford
Clear
72° wxIcon
Hi: 95° Lo: 54°
Feels Like: 72°
Brookings
Scattered Clouds
52° wxIcon
Hi: 65° Lo: 49°
Feels Like: 52°
Crater Lake
Clear
66° wxIcon
Hi: 84° Lo: 49°
Feels Like: 66°
Grants Pass
Clear
70° wxIcon
Hi: 93° Lo: 55°
Feels Like: 70°
Klamath Falls
Clear
66° wxIcon
Hi: 87° Lo: 45°
Feels Like: 66°
Cooler and quiet Wednesday
KDRV Radar
KDRV Fire Danger
KDRV Weather Cam

Community Events