Equifax hit with £500,000 fine for data breach that left 15million customers at risk of fraud
The credit reference agency has been hit with the highest fine possible after an investigation by the watchdog found multiple failings by the company
CREDIT reference agency Equifax has been fined £500,000 for failing to protect the personal data of up to 15million Brits during a 2017 cyber attack.
A watchdog investigation found that the company’s UK arm failed to take appropriate steps to ensure US parent Equifax Inc, which was processing data on its behalf, was protecting the information.
The probe by the Information Commissioner’s Office (ICO) – carried out alongside one by the Financial Conduct Authority – revealed multiple failures at the credit reference agency.
It found that its systems designed to protect customers’ data weren’t good enough, and there were significant problems with data retention, IT system patching and audit procedures.
The investigation also found that the US Department of Homeland Security had warned Equifax Inc about a “critical vulnerability” as far back as March 2017.
The hack saw millions of customers’ personal information stolen including names and dates of birth, addresses, passwords, driving licence and financial details.
The breach happened between May 13 and July 30, 2017 in the US affected 146 million customers globally.
Many victims were unaware their information was held by the company which represents BT, Capital One and British Gas.
er the Data Protection Act 1998 rather than the new General Data Protection Regulation (GDPR), and the fine is the maximum allowed under the previous legislation.
Information commissioner Elizabeth Denham said: “The loss of personal information, particularly where there is the potential for financial fraud, is not only upsetting to customers, it undermines consumer trust in digital commerce.
“We are determined to look after UK citizens’ information wherever it is held.
“Equifax Ltd has received the highest fine possible under the 1998 legislation because of the number of victims, the type of data at risk and because it has no excuse for failing to adhere to its own policies and controls as well as the law.”
She added: “Equifax Ltd showed a serious disregard for their customers and the personal information entrusted to them, and that led to today’s fine.”
An Equifax spokesman said: “Equifax has co-operated fully with the ICO throughout its investigation, and we are disappointed in the findings and the penalty.
“As the ICO makes clear in its report, Equifax has successfully implemented a broad range of measures to prevent the recurrence of such criminal incidents and it acknowledges the strengthened procedures which are now in effect.
“The criminal cyberattack against our US parent company last year was a pivotal moment for our company. We apologise again to any consumers who were put at risk.
“Data security and combating criminal digital activity is an ongoing battle for all organisations that requires continued innovation and attention.
“We have acted and continue to act to make things right for consumers. They will always be our priority.”
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