Equifax is In a lot of trouble!

Equifax is In a lot of trouble!

equifax data breach

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Equifax is in a great deal of trouble.

Dissolve the corporation.

Equifax is in a great deal of trouble. The credit reporting company failed to protect the personal financial data of as much as 143 million Americans. That is just under half the entire American population! Equifax's failure of duty of care, exposed not only names and addresses, but also social security numbers, people's date of birth, drivers license numbers and bank card numbers. The Federal Trade Commission and Congress are investigating the information breach, and both the Massachusetts attorney general and the city of San Francisco are suing on behalf of residents whose information was compromised. Equifax's failure calls for judicial dissolution. Although this is a rare but vital procedure, it is basically the corporate death penalty. Where Equifax is incorporated, in the state of Georgia, the attorney general may file a lawsuit in state court to dissolve a corporation if the corporation "has continued to exceed or abuse the authority conferred upon it by law". Then the compnaies entire basis for existence is to collect and maintain private financial data about individuals who are not customers of the company.

People do not even know who Equifax is.

Most previous breaches have affected people who had chosen to buy from companies by buying literature or air tickets. Most of the people whose data was compromised by Equifax's lax security don't have any idea that Equifax exists, not to mention that it maintains their private financial data. While there's never an excuse for major companies to be sloppy with customer data, Barnes & Noble and British Airways aren't in the industry of securely storing private financial data. They are in the businesses of promoting books and flying airplanes. Whenever a bookstore or airline doesn't manage customer data well, then the company has to compensate its customers for its negligence, and hopefully learn from these mistakes. But when a company's entire reason for existence is managing an individuals most sensitive private financial data, and it fails spectacularly, it should not be further entrusted with this important responsibility. Moreover there should be civil litigation and some form of punishment.

Executives sold $2,000,000 of stock before reporting the breach.

Equifax's conduct following the breach has given little comfort. Before revealing the breach to the public, senior executives sold $2 million valuation of stock. Meanwhile, following the breach was announced to the public, Equifax offered consumers free credit monitoring-but tried to force them to accept a mandatory arbitration provision clause buried inside the fine print. This is not the conduct of a company that deserves to carry on being entrusted with a critical role within our economy. State laws encourage the creation of corporations because they're considered to confer a benefit on society. But not in this case. Equifax had one job, but it failed. 

So to summarize, just under fifty percent of American adults learned that a company, few had ever heard of, had lost control of their financial data, of which many never knowingly gave it and before the executives came clean they sold 2 million dollars of shares.

The above opinion is not that of Numus Software, and this article has been created by a contributer.

Article Written By Numus Software : October 22nd, 2017.