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
      Alternatives From 2020 Conferences The 2020 Update Another one of those Dan’s New Leaf Posts, meant to inspire thought about IT Governance . . . . Each year as we go to various conferences throughout the Midwest ranging in scope; from small banker conferences that Dan himself moderates, to hacker conferences like Defcon.  We […]
    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! Download the large versions here: Awareness Poster (Portrait) Awareness Poster (Landscape)   You are welcome to print out and distribute this around your office.  
    The IBA Presents an infotex Workshop: Tech-Shop (A Virtual Workshop for Banks IT Geeks) Live Workshop Time for a workshop for the technical side of the community-bank. Time for a workshop full of command lines and configurations, acronyms we are forbidden to use around management, and even dark-web jokes. Time for a workshop where we […]
    An Analogy… …About Taking Better Notes Another one of those Dan’s New Leaf Posts, meant to inspire thought about IT Governance . . . . An interesting set of metaphors arose out of our efforts to improve our time management practices at infotex.  In the spirit of sound strategic planning, we as a team decided […]
    A Webinar-Movie In our current world of uncertainty there is at least one thing that is certain. Business needs to continue, and that means that it is important for managers to be able to meet with their team even if everyone is working remotely at this point. In this Webinar-Movie, Dan will compare virtual meeting […]