Equifax’s massive data breach has prompted some customers to hold back business which has directly impacted the company’s profits. Equifax reported lower quarterly profit and their quarterly revenue missed their targets. More than 145 million people were compromised by this breach that has led to investigations in all 50 states, a federal criminal probe, and hundreds of lawsuits as reported by Reuters.
Because Equifax is unsure of how much it will financially cost them to to respond to the probes and litigation, and they can’t guarantee that they won’t be hacked again, it can cost them future business. Until they can explain what happened, how it happened, how they solved it and how they can protect from future breach attempts, they will continue to a loss in revenue. They have already incurred more than $87 million in expenses tied to legal fees, investigation of the breach, and covering the costs of the free credit monitoring for U.S. consumers whose data was exposed in the breach. This amount will continue to climb as Equifax has already estimated an additional cost of between $56 million and $110 million just for the free credit monitoring service.
Read more from Reuters here