Equifax will pay up to $700m to settle with the US and states over a 2017
Data Breach that exposed social security numbers and other private information of nearly 150m people.
The settlement with the US Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC), as well as 48 states and the District of Columbia and Puerto Rico, would provide up to $425m in monetary relief to consumers, a $100m civil money penalty and other relief.
The breach was one of the largest ever to threaten the private information. The consumer reporting agency, based in Atlanta, did not detect the attack for more than six weeks. Compromised data included social security numbers, birth dates, addresses, driver license numbers, credit card numbers and in some cases data from passports.
Affected consumers may be eligible to receive money by filing one or more claims for conditions including money spent purchasing credit monitoring or identity theft protection after the breach and the cost of freezing or unfreezing credit reports at any consumer reporting agency.
All affected consumers would be eligible to receive at least 10 years of free credit-monitoring, at least seven years of free identity restoration services and, starting on 31 December and extending seven years, all US consumers may request up to six free copies of their Equifax credit report during any 12-month period.
If consumers choose not to enroll in the free credit monitoring product available through the settlement, they may seek up to $125 as a reimbursement for the cost of a credit-monitoring product of their choice. Consumers must submit a claim in order to receive free credit monitoring or cash reimbursements.
“Companies that profit from personal information have an extra responsibility to protect and secure that data,” said the FTC chairman, Joe Simons.
“Equifax failed to take basic steps that may have prevented the breach that affected approximately 147 million consumers. This settlement requires that the company take steps to improve its data security going forward, and will ensure that consumers harmed by this breach can receive help protecting themselves from identity theft and fraud.”
The announcement confirms a report by the Wall Street Journal that the credit reporting agency had reached a deal with the US.
The company said earlier this year that it had set aside around $700m to cover anticipated settlements and fines.
The settlement must still be approved by the federal district court in the northern district of Georgia.