About Us | Contact Us
View Cart

Equifax Downgraded Over Data Breach

By Vigilize | Monday, June 17, 2019 - Leave a Comment

For the first time, a data breach has triggered a financial downgrade…


An article review.


ServIcons_ITAudit_01

If you’ve been following our blog–or just been watching the news–for the past couple of years you’re no stranger to coverage of the massive data breach suffered by Equifax in 2017. While much of this coverage has focused on the impact to consumers, a new story submitted by our friend Wes Pollard reveals the damage done to Equifax itself: its ratings outlook has been downgraded by Moody’s based upon the fallout from the breach–a first for the industry.

Factoring in to the downgrade is a nearly 700 million dollar charge reported by Equifax in the first quarter of this year, related to regulatory fines and class-action lawsuits related to the breach. In addition, Moody’s estimates that Equifax could spend 400 million dollars both this year and in 2020 to upgrade its infrastructure and implement security measures.

While it isn’t likely that your organization would see over a billion dollars in costs related to a data breach, the downgrade helps to underscore the significant, lasting impact such an event can have. Even past 2020, analysts at Moody’s estimate that Equifax will face higher costs than it would have otherwise as it increases cybersecurity related spending…and they’re not alone: cybersecurity related spending is expected to rise for all companies that handle large amounts of sensitive data, as firms try to avoid becoming the next Equifax.

Equifax may be the first company to be downgraded due to a breach, but they’re not likely to be the last. Indeed, Moody’s and other reporting agencies are working to include cyber risk in their credit ratings, which could mean firms will face more scrutiny from investors in the future when it comes to securing data.


Original article by Kate Fazzini writing for CNBC.


same_strip_012513


 

Posted in Article Reviews

Latest News
    What you need to know for compliance coast-to-coast. Back in 2020 we posted an article containing links to data breach laws from each state, and it has proven to be one of our more popular posts.  Because laws surrounding the use (and abuse) of technology are always evolving, we thought it was worth taking another […]
    Another awareness poster for YOUR customers (and users).  Now that we have our own employees aware, maybe it’s time to start posting content for our customers! In the spirit of October and Halloween we have put together a gallery of our “spooky” Awareness Posters at halloween.infotex.com. Use them to help decorate for the holiday! Check […]
    With nearly three in four people using third-party payment services tied to their bank accounts, the risk isn’t limited to your own policies and procedures… An article review. When working on cybersecurity awareness messages for your customers you may be inclined to focus on your own systems, but a new study on security in digital […]
    PRESS RELEASE – FOR IMMEDIATE RELEASE BUSINESS NEWS NEW EMPLOYEE FOR INFOTEX infotex is excited to announce that Cody Smith has joined the team as the newest Data Security Analyst. Cody holds several industry certifications (including the most recent: SSCP) as well as a B.S in Cyber Security & Information Assurance from Western Governors University. […]
    It’s all about protecting Customer information . . . In 1999 the Gramm-Leach-Bliley Act (GLBA) directed the Federal Deposit Insurance Corporation (FDIC) and other federal banking agencies to ensure that financial institutions have policies, procedures, and controls in place to prevent the unauthorized disclosure of customer financial information.  The FDIC and other federal banking agencies […]
    A Ghoulish Gallery! Just a few scary-themed Awareness posters from our collection, which you can see at posters.infotex.com! Below you will find both the vertical and horizontal versions of each of the posters, all you need to do is “right-click > “Save link as…” to download! Vertical 8.5″ x 11″ Format   Horizontal 11″ x […]
    What to Expect in an Annual Information Security Report to the Board Webinar-Movie Information security ranks as a top risk to financial institutions, both in terms of likelihood and overall impact. It is important that boards receive annual comprehensive reporting from management about the information security risks and incidents, and the actions taken to address […]
    Another awareness poster for YOUR customers (and users).  Now that we have our own employees aware, maybe it’s time to start posting content for our customers! Check out posters.infotex.com for the whole collection! Download the large versions here: Awareness Poster (Portrait) Awareness Poster (Landscape)   You are welcome to print out and distribute this around […]
    With the potential to break all existing forms of encryption, quantum computing poses a unique challenge… An article review. While quantum computing has been a buzzword for some time now the technology remains largely theoretical, with small scale proofs-of-concept that still suffer from serious limitations.  That hasn’t stopped security researchers from worrying about the technology’s […]
    A new way of helping people “read” new guidance… Look for more in the future! To save you time, we are proud to present “Adam Reads” . . . recorded versions of our Guidance Summaries! Below you can find an embedded player for the audio file. If you are having issues with that working, you […]