Equifax CEO to testify to Congress as states begin probes

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Nearly 40 US states have joined a probe of Equifax’s handling of a massive data breach that exposed valuable information on up to 143 million Americans, according to the Illinois attorney general’s office, which is leading the investigation. The company's shares have fallen by more than 30 percent because of the probe and the company's reaction to it.

Congress is also probing the hack, and Equifax’s chief executive, Richard Smith, is expected to testify on Oct. 3 before a House of Representatives panel.

Nearly 40 US states probe Equifax's handling of massive data breach. /Reuters Photo

Even amid disclosures of data breaches at a broad array of companies and government agencies in recent years, the Equifax hack stands out.

Cyber security experts said it was among the largest hacks ever recorded and was particularly troubling due to the richness of the information exposed: names, birthdays, addresses and Social Security and driver’s license numbers.

Equifax did not respond to telephone calls or emails seeking comment.

Equifax's announcement of the incident /Equifax Screenshot

US Representative Carolyn Maloney, a member of the House subcommittee on Capital Markets, Securities and Investment, asked the CEOs of credit reporting companies TransUnion and Experian PLC how each is addressing its information security program in light of the Equifax data breach.

She said the hackers in the Equifax case likely exploited security flaws in open-source software, called Apache Struts, that was used by Equifax. She wants to know if the Equifax rivals downloaded security fixes for the software.

US Representative Carolyn Maloney, a member of the House subcommittee on Capital Markets, Securities and Investment /AP Photo

Shares of TransUnion traded in New York fell 8.5 percent to 43.67 US dollars. Experian shares in London rose 0.8 percent.

Stock trader Ken Polcari, director of the NYSE floor division at O’Neil Securities in New York, said the shares are sinking because of Equifax’s poor handling of a terrible breach.

“It’s a disaster. This breach has put almost every adult American in jeopardy. I don’t think (the share drop) is over by any stretch. This is just going to get uglier and uglier for them,” he said.

Source(s): Reuters