What's going on?

Shares of credit-reporting company Equifax fell 13% on Friday following news that hackers had stolen data on as many as 143 million of its customers! (tweet this)

What does this mean?

Equifax says that it first discovered the breach on July 29th and has spent the last six weeks trying to understand its extent and impact. The long delay in disclosing the hack has been widely criticized � and almost certainly raises questions about management�s credibility (a factor which is obviously of importance to investors).

The hack, one of the largest in US history, is a particularly big deal because Equifax handles data that is integral to people�s lives and irreplaceable: addresses, driver licence numbers, dates of birth and social security numbers. This is far different than, say, hackers stealing a bunch of credit card numbers (i.e. it�s relatively easy to get a new card).

Why should I care?

For the stock: Equifax has a very expensive fight on its hands.


It�s too early to know with any certainty how much this data breach will ultimately cost Equifax, both in costs resulting from this scandal and in the loss of future business. Bloomberg reported over the weekend that Equifax�s cyber security insurance is unlikely to be large enough to cover the company�s costs � a worrying sign for its investors. More broadly, other credit-reporting companies are also vulnerable, particularly if hackers are able to access similar weaknesses in their cyber security software (although, so far, it appears no other agencies have been hacked).

For you personally: Being vigilant is now more important than ever.


Security experts say that the data will likely be used to �phish� for more details from the people who got hacked. For example, hackers could send you an official-looking email that includes many of your key details and ask for more info, like your credit card number. Being extremely vigilant � common-sense behavior like not giving out details over email and being alert to signs of suspicious bank transactions � is more important now than ever.