'You can't fix stupid,' lawmaker slams former Equifax CEO for data breach
05 October, 2017, 00:52 | Author: Sherri Guerrero
"All the folks in the executive suite had no clue, but they were the luckiest investors on August 1 to sell the stock at the best price to net $655,000 - this was pure luck and nothing else?" a baffled Scott asked former Equifax CEO and Chairman Richard Smith.
Rep. Greg Walden, the Republican chairman of the House subcommittee, pledged Tuesday to hold Equifax and Smith accountable.
Following the cyber breach at Equifax that compromised the personal information of millions, cyber security firm, Mandiant conducted an independent review to find the actual number of people affected by the issue.
Smith said that consumers who were initially given a vague response by Equifax's website about the potential hack of their data should have received clarity now.
"We're all going to have to work together to make sure that consumers are protected across the board", Lewis said, "this is just a new age, a new era where so much information is available across the board". "I am here today to apologize to the American people myself".
"Equifax was entrusted with Americans' private data and we let them down", Smith said.
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The review adds about 2.5 million Americans to the list of those affected by the massive cyber attack, bringing the total number of people in the USA potentially impacted to 145.5 million. The company is investigating why.
Some lawmakers have called for new consumer protections such as stricter monitoring of the credit bureaus and a federal rule standardizing requirements to notify victims of data breaches.
Based on Equifax's postmortem investigations, the hacker that exploited this exact weakness likely first used it to pry into Equifax on May 13th, and then continued until July 30th, and Equifax's security tools were none the wiser.
Warren said this business mix creates a conflict of interest by making Equifax responsible for protecting consumer data while allowing it to profit from consumers' attempts to mitigate the breach.
However, Smith had an interesting explainer for how this easy fix slipped by 225 people's notice - one person didn't do their job.
Equifax has recommended that consumers enter some identifying details into a website it set up in the aftermath of the hack to determine whether they were affected. Credit freezes-which have been widely recommended in the wake of the Equifax breach as a way to prevent identity theft-typically cost between $3 and $10, and fees are also charged anytime a customer wants to lift or reinstate a freeze. Barros will also receive a one-time grant of $1.5 million in Equifax stock and will be eligible for at least $372,000 in additional compensation for performance. He said this to assure Congress members that core credit report files were not compromised or altered.
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