Thursday, July 25, 2019 [Tweets] [Favorites]

Equifax Breach Settlement

Equifax Data Breach Settlement (via Hacker News):

In September of 2017, Equifax announced it experienced a data breach, which impacted the personal information of approximately 147 million people. A federal court is considering a proposed class action settlement submitted on July 22, 2019, that, if approved by the Court, would resolve lawsuits brought by consumers after the data breach. Equifax denies any wrongdoing, and no judgment or finding of wrongdoing has been made.

If you are a class member, you can use this website to claim the benefits described below.

Previously:

Update (2019-07-26): Josh Centers:

Most coverage has focused on the $125 amount, but as the FTC page clearly says and Jessamyn West emphasized on Twitter, you can claim up to 10 hours of compensation for dealing with the breach, at $25 per hour, without submitting any additional documentation, for a total payment of $375. You just have to describe what you did and the approximate dates you took those actions.

[…]

If you choose a cash payment instead of credit monitoring, you’ll be asked to affirm that you already have credit monitoring. Credit Karma already offers this service for free, so you should take the cash.

Update (2019-08-01): FTC:

But there’s a downside to this unexpected number of claims. First, though, the good: all 147 million people can ask for and get free credit monitoring. There’s also the option for people who certify that they already have credit monitoring to claim up to $125 instead. But the pot of money that pays for that part of the settlement is $31 million. A large number of claims for cash instead of credit monitoring means only one thing: each person who takes the money option will wind up only getting a small amount of money. Nowhere near the $125 they could have gotten if there hadn’t been such an enormous number of claims filed.

So, if you haven’t submitted your claim yet, think about opting for the free credit monitoring instead. Frankly, the free credit monitoring is worth a lot more – the market value would be hundreds of dollars a year. And this monitoring service is probably stronger and more helpful than any you may have already, because it monitors your credit report at all three nationwide credit reporting agencies, and it comes with up to $1 million in identity theft insurance and individualized identity restoration services.

For those who have already submitted claims for this cash payment, look for an email from the settlement administrator. They’ll be asking you for the name of the credit monitoring service you already have. Or, if you want to change your mind, you’ll have a chance to switch to the free credit monitoring. You can also email the settlement administrator, JND, at info@EquifaxBreachSettlement.com.

Josh Centers:

Everyone in the country has access to free credit monitoring already. It’s an absolutely worthless settlement.

For example, you can get it from Credit Karma.

Josh Centers:

I’d forgotten that Equifax had purchased a credit monitoring firm before disclosing the breach, so you’re right, it really is a damn scam.

Jo Wright:

I love that it takes the stance that it’s ALL OUR FAULT for having the cheek to apply for a settlement we were collectively awarded. How dare we? We ruined it for ourselves!

Update (2019-08-06): Adam Engst:

In the law, there is a difference between a fine and restitution. Fines go to the government prosecuting the crime, whereas restitution goes to the victims of the crime. Since we’re talking about a settlement in which Equifax gets to deny all wrongdoing, there’s apparently no crime in play. Regardless, the settlement includes both. The fines include $175 million to the states and $100 million to the Consumer Financial Protection Bureau, and the restitution is the $425 million directed to repay consumers.

[…]

The final sour aspect of this situation is the fact that most people never asked to do business with Equifax. We’ve all become concerned about the spread of our personal information and how it can be used against us, but collecting and sharing data about us is Equifax’s core business (as it is for competitors Experian and TransUnion too).

At least the likes of Google and Facebook provide us with services we choose to use in exchange for our data. In comparison, the credit reporting agencies sell our data to other companies with whom we want to do business. They couldn’t care less about us because we’re just raw materials to them.

Update (2019-08-13): Nick Heer:

This settlement does nothing to dissuade state actors from continuing to pilfer sensitive data, nor does it encourage care for those who stockpile information like this. Of course, the FTC has limited scope and powers. It could not accomplish the former, but it certainly could attempt the latter.

Instead, the Commission agreed to a weak deal that barely impacts Equifax’s financial status and does little to encourage better behaviour in data-hoarding industries. Even if this were a financially-motivated crime, this settlement does not protect those affected. But this breach was so much more, and this settlement doesn’t begin to address the far more serious and more likely rationale.

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