The credit reporting agency, Equifax, has finally come to a settlement. With a sum of $700 million to pay to the state and Federal governments, to settle the probes caused due to a breach and on the loss of private information.
The loss of private information affected over 150 million people. And this deal with the governments would become the largest sum to be paid for data breach offenses. On Monday, the Federal Trade Commission announced that Equifax will pay at least $300 million and put as much as $425 million in an account to reimburse people who purchased identity monitoring or credit services. This penalty to be paid by Equifax is in relation to the massive data breach in 2017.
However, the amount of the money to be paid to the customers will change over the course of time, for there are still customers who are filing for claims. Furthermore, the company will also pay $275 million in civil penalties to 48 states and the Consumer Financial Protection Bureau.
This deal also includes that issue of changing how the company deals with private and personal data. Equifax will have to change the procedures and the protocols to protect the consumer data and will have to make necessary changes in its working procedures to do the same.
According to the FTC, the company violated prohibitions put in place, such as continuing with unfair and deceptive practices. Furthermore, Equifax also had not taken relative measures to protect the data of the consumers.
As per FTC, Equifax did not take “reasonable physical, technical and procedural safeguards” to protect the consumer data. The Equifax hack was the biggest in history.