Scott questions the 'pure luck' in Equifax executive stock sales

Scott questions the 'pure luck' in Equifax executive stock sales

Scott questions the 'pure luck' in Equifax executive stock sales

In the Equifax breach last month, the stolen data included "names, Social Security numbers, birth dates, addresses and, in some instances, driver's license numbers", according to a statement by the company.

Equifax and other credit rating companies were advised in March by the Department of Homeland Security's Computer Response Readiness Team that certain computer vulnerabilities required patching.

Just three weeks before Equifax disclosed a colossal data breach that compromised the data of more than 145 million people, its then-CEO Richard Smith gave a speech in which he declared that "fraud is a huge opportunity for us".

The Atlanta-based company said Monday that 2.5 million more people may have been affected by the massive hack that the firm announced in September. Fortunately for those living overseas, the security audit indicates that no databases outside of the United States have been affected.

"Senator, if I may clarify, the arbitration clause is in a series of products that we offer to consumers where consumers have options", Smith responded. Equifax's board said it will immediately begin a search for a new permanent leader.

Equifax is trying to help consumers while also fixing its security systems, he said.


Smith stepped down last week amid the investigation, while indicating he would remain in a consulting capacity during the investigation, which includes a congressional hearing Tuesday.

The IRS has suffered its own embarrassing breaches, with the agency announcing on 6 April that the personal data of up to 100,000 U.S. taxpayers could have been compromised.

Equifax said hackers exploited a months-old, unpatched Apache Struts flaw to carry out the breach, dubbed one of the largest and worst-ever breaches in USA history due to the sensitive nature and value of the data compromised.

"The company failed to prevent sensitive information from falling into the hands of wrongdoers", he said. Representative Greg Walden said to Smith.

Walden and other members of the committee pressed Smith on how Equifax checked its security measures between when the hack happened in May and when the public became aware in August.

Smith said he would expect Equifax to "cooperate" with "particular legislation that arises out of this horrific breach".

Related news