Equifax breach could be most costly in corporate history
NEW YORK/TORONTO (Reuters) – Equifax Inc (EFX.N) said it expects costs related to its massive 2017 data breach to surge by $275 million this year, suggesting the incident at the credit reporting bureau could turn out to be the most costly hack in corporate history.
The projection, which was disclosed on a Friday morning earnings conference call, is on top of $164 million in pretax costs posted in the second half of 2017. That brings expected breach-related costs through the end of this year to $439 million, some $125 million of which Equifax said will be covered by insurance.
“It looks like this will be the most expensive data breach in history,” said Larry Ponemon, chairman of Ponemon Institute, a research group that tracks costs of cyber attacks.
Total costs of the breach, which compromised sensitive data of some 247 million consumers, could be“well over $600 million,” after including costs to resolve government investigations into the incident and civil lawsuits against the firm, he said.