Atlanta-Based Equifax Says Security Breach Cost Company $1.45 Billion And Counting
On Monday, Equifax announced a $700 million settlement with the Federal Trade Commission that allows some 147 million affected consumers either three years of free credit monitoring or a cash payment.
Mike Stewart / Associated Press file
Atlanta-based Equifax’s second quarter revenue of $880 million beat expectations slightly, and was up a tick compared to a year ago.
But the company’s net profit of $66.8 million was half of what it was during the same three-month period a year prior.
In its earnings report, executives noted Equifax has spent more than $1.4 billion related to the 2017 cybersecurity breach.
On Monday, Equifax announced a $700 million settlement with the Federal Trade Commission that allows some 147 million affected consumers either three years of free credit monitoring or a cash payment.
The company’s CEO, Mark Begor, confirmed on an earnings call Thursday that the tally could grow.
“We intend to work with all the parties to bring these remaining matters to closure as soon as possible, while balancing the needs of our company, employees, customers and shareholders,” he said.
Begor said Equifax will rely on its available credit to fund consumer claims.
“As of the end of the second quarter, we had approximately $1.1 billion of borrowing capacity available to us,” he said.
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