Few things are as dangerous on the Web as identity theft. A person’s life can be destroyed socially and/or financially, something that becomes possible when a company—whether private or public—holds too many details about its customers. That brings us to Equifax, one of the most important credit reporting agencies in the United States. A massive cyberattack compromised the data of 143 million consumers, and in hundreds of thousands of cases, precise information such as credit card numbers was obtained.
In many countries, people live and die by credit. Spending your days with debt on your shoulders isn’t particularly attractive to me, but in regions with stable financial systems, taking out loans and paying them off opens many doors. Of course, this only works with the involvement of external agents, starting with credit agencies. Across the pond, three names essentially dominate the market: TransUnion, Experian, and Equifax. The nature of their businesses makes these agencies very tempting targets for hackers. In September 2015, Experian’s servers suffered an attack, compromising the information of 15 million customers. Now it’s Equifax’s turn, and the breach was so large that it hits almost half of the U.S. population.
The company stated that the attack took place between “mid-May and late July,” but it was officially discovered on July 29, meaning Equifax took more than a month to report the incident. According to available information, the attackers exploited a vulnerability in Equifax’s website, affecting on average 143 million people, which also includes foreigners (UK and Canada). Physical addresses, driver’s licenses, birth dates, and social security numbers were compromised, but the story doesn’t end there: “personal information” of 182,000 consumers was leaked (including reports on disputes), and credit card numbers in 209,000 cases.
What Consumers Can Do
For affected consumers, what comes next is not pretty. Equifax has set up a special credit monitoring and identity protection program that will be free for twelve months (its normal price is $28 per month), but there are other paths. Federal law guarantees a free credit report each year, and anyone with suspicions should obtain one. There’s also the option to “freeze” your credit to block new credit card applications (this is done by calling each agency), and to set up a “fraud alert,” whose guide is available on the FTC’s page. Vigilance, patience, and many calls. All involved need to work at maximum speed, and Equifax still has to explain itself. The detail that three Equifax executives sold stock worth $1.8 million before the announcement of the attack doesn’t help at all...
