"We are treating this with more significance because it is the first time that cyber has been a named factor in an outlook change," Joe Mielenhausen, a spokesperson for Moody's, told CNBC. "This is the first time the fallout from a breach has moved the needle enough to contribute to the change.
Moody's cited Equifax's recent $690 million first-quarter charge for the breach as contributing to the downgrade. The expense represents the company's estimate for settling ongoing class action cases, as well as potential federal and state regulatory fines. The note also cited Equifax's hefty cybersecurity investments as problematic for its future strength.
"We estimate Equifax's cybersecurity expenses and capital investments will total about $400 million in both 2019 and 2020 before declining to about $250 million in 2021," the note says. "Beyond 2020, infrastructure investments are likely to remain higher than they had been before the 2017 breach.
evilla_t They should be out of business
Yes!
If your credit card provider gives you a free credit score each month, check if they’re using Equifax. If they are, tell your credit card provider that they’re partnering with an untrustworthy company
Good
briankrebs Well it's about time.
They deserved it. In fact I am surprised they didn’t get hit by so many lawsuits that they filed for bankruptcy!
briankrebs Equifax
if a business wants to run a credit check on me, i always ask if they use equifax. if so, like CharlesSchwab does, i say nevermind and walk out the door. its mindboggling companies still use equifax when theres other options
briankrebs LOL
emsisoft Hopefully, step one of the process to shutter them
briankrebs Good. They should be run out of business for how they handled my data, which I never elected to give them in the first place. The whole thing is a racket.