At the recent Congressional hearing regarding the careless Equifax breach, Senator Elizabeth Warren set forth to summarize all the many ways in which Equifax has benefited and will benefit after porking some 145,500,000 Americans.
How Equifax Profits from the Data Breach
To begin with, we have that “free monitoring of your credit service” which Equifax’s original sop to public outcry for its unforgivable carelessness. While this service was certainly free during the initial year, every year after that Equifax soaks you for $17 per month. Even if 1% of all people who signed up for the alleged “free” credit monitoring for some reason forget to cancel, this company will gain an extra $200,000,000 every year.
And then we have the Lifelock enrollments. Lifelock is a discredited, fraudulent company that pressure sells a totally useless credit monitoring service which is bought from Equifax. During the first week following the Equifax breach, Lifelock enrolled 100,000 additional customers at $29.95 per month, and then Equifax receives a huge cut from all of these new customer fees.
So now let us talk about the fraud prevention service, which is the newest crap service offered by Equifax. Now that we have all this breached data floating online, it stands to reason that fraud is sitting at all-time highs. This has created a demand for new anti-fraud contracts, and our friends from Equifax stands at the ready to supply those needed services, and actually federal agencies have begun to offer the company profitable multi-million dollar contracts to thwart this fraud — that is now ready to explode because of all this personal data that Equifax released all across the world where anyone with bad intentions and questionable morals can collect and gather.
Equifax Stock Price
While it is certainly true that we are seeing that Equifax’s stock price has fallen 30%, but just as Wells Fargo has so forcefully reminded everyone, this is only a market that is overreacting and now Equifax stocks are sitting at “a very attractive entry point,” and a chance to purchase into this “high-quality consumer credit franchise” should easily “outperform” all projections.
However, the Senator pointed out that Equifax has gained much more from this horrible data breach than it stands lose, and unfortunately the average person who was a victim of this careless data breach will get a payout of merely $2 in restitution, she added.
“Consumers will spend the rest of their lives worrying about identity theft,” Warren stated. “But Equifax will be just fine—heck, it could actually come out ahead.”
After quoting Equifax CEO comments from earlier comments which were spoken at the University of Georgia’s business school back August, Senator Warren, who is a very outspoken and agressive consumer watchdog, pointed her finger while accusing him of not only damaging fellow Americans who were affected by this careless Equifax breach, but that they will actually profit from their error and public betrayal.
Even after Smith admitted that this Equifax hack has dramatically boosted the occurrence of theft and fraud, the Senator then used his very own words against him, “So the breach of your system has actually created more business opportunities for you,” Warren stated Wednesday at the Congressional hearing by the Senate banking committee.
So do you think Equifax executives will lose sleep over their carelessness? … LOL
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