Equifax data breach cost hits £175 million - £91 million insured

News by Doug Olenick

The massive data breach that compromised the data of 147.9 million Equifax customers last year has cost the company more than £175 million in related expenses.

The massive data breach that compromised the data of 147.9 million Equifax customers last year has cost the company more than US$ 242 million (£175 million) in related expenses, but luckily for the company, much of this cost has been covered by its cyber-security insurance.

Equifax noted the expenditures in its first-quarter financial report. The total tally for the breach since it became public in September has been US$ 242.7 million (£175.8 million) with US$ 78.7 million (£57 million) in pre-tax expenses being spent during the first quarter, ended 30 March. This included US$ 45.7 million (£33.1 million) in IT and security costs to transform the company's IT infrastructure and improve application, network, and data security, and the costs of development and launch of Lock and Alert. Another US$ 28.9 million (£21 million) was spent during the quarter on legal and investigative fees and US$ 4.1 million (£3 million) on product liability costs include the expected costs of fulfillment of TrustedID Premier and support of consumers using TrustedID Premier.

In the financial filing, Equifax said it carries US$ 125 million (£91 million) in cyber-security insurance, with a US$ 7.5 million (£5.4 million) deductible and has so far received US$ 60 million (£43 million) in payments from its carrier, US$ 10 million (£7.2 million) was received during the first quarter.

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