Equifax Bonds Crash As FTC Confirms Investigation Into Massive Hack

While not entirely surprising given the demands from politicians, The Hill reports that The Federal Trade Commission on Thursday announced that it had launched an investigation into the Equifax breach that left sensitive information for 143 million Americans exposed to hackers.

"The FTC typically does not comment on ongoing investigations," FTC spokesman Peter Kaplan said in an email.

 

"However, in light of the intense public interest and the potential impact of this matter, I can confirm that FTC staff is investigating the Equifax data breach."

It is extremely rare for the agency to publicly confirm an investigation.

As The Hill notes, Congress has also been scrutinizing the credit reporting agency. Multiple committees have announced hearings on the breach and on Wednesday the House Commerce Committee invited Equifax CEO Richard Smith to testify before on the company's handling of the crisis.

While many have focused on the chaos in the company's stock price, we note that Equifax bonds have collapsed (with no dead cat bounce) to record lows (record high yields)...

Comments

Lumberjack buzzsaw99 Thu, 09/14/2017 - 10:51 Permalink

News reporter calls Equifax to see if their info was compromised. Here's what happened.

http://www.centralmaine.com/2017/09/13/first-person-i-called-equifax-wit...

...1:17 p.m.

My eyes were just about to glaze over, listening to my rights, when a slight noise in the background cut off the recorded voice. “Please hold while I connect you to an agent,” a voice said, even though I hadn’t asked for one.

“Good,” we thought. “At least this person may be able to help – despite the fact that we’ll never know what the rest of the recording was about to tell us about our rights.”

But our optimism was misplaced. Thirty seconds of ringing later, the call simply led to a busy tone – before finally going dead. It may not be a metaphor for anything, but it sure feels like one.

In reply to by buzzsaw99

Lumberjack GunnerySgtHartman Thu, 09/14/2017 - 11:11 Permalink

Not just equifax either, all of them are taking a hit. It would be interesting to see if they also had problems that are not being discussed.

Canada and UK also affected..

https://krebsonsecurity.com/tag/trans-union/

Q: Was the breach limited to Americans?

A: No. Equifax said it believes the intruders got access to “limited personal information for certain UK and Canadian residents.” It has not disclosed what information for those residents was at risk or how many from Canada and the UK may be impacted.

In reply to by GunnerySgtHartman

NoWayJose Thu, 09/14/2017 - 10:56 Permalink

The FTC will find negligence (but not intent), and what they do is entirely 'legal' because all 143 million customers signed or agreed to some fine print in a credit application that lets them collect this data.

If the FTC takes any action the obvious thought is - why didn't take any action against all the dozens of earlier reported 'hacks'?

Max Cynical Thu, 09/14/2017 - 10:59 Permalink

It was reported last night (on Tucker Carlson) that all Equifax had to do to prevent this hack was apply a Microsoft software patch they've had since March.

NoWayJose Thu, 09/14/2017 - 11:02 Permalink

I saw where LifeLock credit monitoring got 10 times the usual number of customers this week. Just saying... what if a credit monitoring company - one that already has access into the computer systems of all 3 rating agencies - and one that lives on paid subscriptions - actually helped with the hack? There are also a lot of smaller credit monitoring companies that would LOVE to sign up 143 million customers for a year - paid for by Equifax!

skunzie Thu, 09/14/2017 - 11:46 Permalink

Bonds crash, now I hope everyone who holds Equifax stock will sell it.  Show the bastards we mean business.  I hope this would be a lesson to the remaining two credit rating companies.Also, why the hell do we need three separate credit rating bureaus????????

acheron2016 Thu, 09/14/2017 - 12:26 Permalink

Sounds like a buying opportunity.  There is no chance at all there will be significant penalties.  Especially NOT forthcoming will be criminal negligence indictment for their ART major head of security.  She must be fantastic in bed to get $2,000,000 / yr with no IT experience.  Bet the FTC "BLOWS" off her culpability. 

Mr. Schmilkies Thu, 09/14/2017 - 13:48 Permalink

Do we really need these credit agencies?  Who spoke to God and gave these agencies such power?  I hope they all go out of business and we can go back to the old fashioned way of getting a loan - with your small local bank.