Consumer Fraud Forum Blog

Huge Lessons Companies Should Learn From Equifax's Data Breach

POSTED :October 26, 2017 at 3:32 PM / by William Pinilis / Comments (0) /

Equifax Inc. (EFX) had a massive security breach that compromised the personal information of 143 Americans. With corporate cyberattacks growing, how can a company protect themselves and their clients.

Cyber attacks are a risk that every company faces. They need to be a regular topic of discussion for the executives and iStock-641304194.jpgthe board of directors. Each year, more and more companies are getting involved with cybersecurity and developing strategies on how to deal with a potential cyberattack.

The Equifax breach occurred in July but the U.S. public did not learn of the breach until September. They registered a domain name, in late August, to inform the public about the breach. Why did it take them so long to go public? It does not make sense and demonstrates a level of incompetence.

Equifax said that has invested in data security but it still needs to significantly invest more into protecting people‚Äôs data. They hired an independent cybersecurity firm to look into their data security practices and to provide recommendations on how to prevent another breach from taking place. 

Company investments in data security have risen in the past couple of years. Most companies have increased spending to defend against cyberattacks.

Equifax parted ways with Susan Mauldin, chief information security officer, shortly after the breach was disclosed.  This raised questions, due to the fact, that she might have insight on the breach. Russ Ayres is now the interim chief security officer. One solution is the CEO needs to build a better relationship with the chief security officer. Once, there is a better relationship then there will be more transparency and better cybersecurity measures put into place.

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