5 ms·

I'm not excited about this class action; If they win, the individual payout will be almost nothing ($10?). The lawyers are the only ones who will really "make

by redm 9y ago

I'm not excited about this class action; If they win, the individual payout will be almost nothing ($10?). The lawyers are the only ones who will really "make out" with 10's of millions in fees. There is also a disproportionate effect in that a small portion of the 143 million affected will have a large impact, i.e., "identity theft" while most will be unaffected. I think a fund setup to help those who are directly affected is a better idea. This could be done through government action where penalty proceeds are turned into a fund. In other worse, similar to the BP oil spill in the gulf where the fund helped those who lose income or suffered property damage.

deegles 9y ago
I think a fund is a good idea, but how do you verify that the people claiming from the fund are the people who were affected? :) Keeping my identity/online data safe just seems so hopeless that I don't think about it anymore.
spinlock 9y ago
IMO, the best outcome would be to put Equifax out of business. I have had my identity stolen and they were complicit in enabling the fraud against me. Once you tell them you're NPI has been compromised, they get incredibly passive aggressive against you and refuse to allow you to manage the situation (i.e. they won't let you unlock your credit to apply for a mortgage). In short, this breach of public "trust" is only the smoking gun that proves how horrible Equifax is. But, they have a long history of being a parasitic organization that will hopefully die soon.
- throwaway2048 9y ago
  I'm not so sure about that, the data they have just gets resold to some other party when they go bankrupt, possibly many other parties and shit gets worse.
  - stdgy 9y ago
    Is there any legal way to stop sales like that? If it were shown that Equifax were negligent in protecting the data on their systems, could a court demand that they remove all of the data to mitigate further harm?
  - spinlock 9y ago
    There are already 3 main credit bureaus who have all of your data. It's not about the data it's about how unethical they are in preventing you from controlling the data. Think about it: if every person in america put a freeze on their credit, all of these companies would go out of business because they would no longer have a product to sell. It gets even worse if you're a victim of identity theft because they cannot charge victims of identity theft to freeze or un-freeze a credit report.
- CoachRufus87 9y ago
  > they won't let you unlock your credit to apply for a mortgage So how do you recover from something like that? Are you basically prevented from using credit for the rest of your life?
  - ajross 9y ago
    There are legal limits to how long the data can be stored for. (I want to say it's a federal 7 year limit, but I might be wrong and it might be state laws). Eventually it all times out and your credit resets.
    - spinlock 9y ago
      That's not the issue. They are required to immediately remove incorrect information from your credit report. A freeze prevents them from reporting your credit to third parties (i.e. it prevents them from doing business). So, they hate people who freeze their credit. Their strategy seems to be to make having a credit freeze so onerous that you won't do it so they can continue to sell your information to their customers.
      - deleted 9y ago
        [deleted]
  - spinlock 9y ago
    For many years I could not get a new credit card, overdraft protection on a checking account or a mortgage. I finally was able to completely remove the freeze so that I could secure a mortgage.
- woogiewonka 9y ago
  C'mon we live in the real world here. What makes you think Equifax will be put out of business? I agree, the scumbags should be put down like a suffering animal but that will never happen.
waynenilsen 9y ago
I think this comment is missing the fact that Equifax will be financially punished as a result, possibly resulting in better systemic security overall.
- cmiles74 9y ago
  I don't think this logically follows. More likely, Equifax will settle out of court for a much smaller sum. At that point there's now a literal dollar amount associated with a data breach. Perhaps some math will be done, proving out that there would need to be "N" number of breaches before the cost of settling out-of-court for the breaches would be more expensive then materially changing the way they manage data. And "N" number of breaches, that's just so unlikely. At that point it would be fiscally irresponsible to properly secure this data. They would owe it to their shareholders to continue with their shoddy security and data management procedures.
  - ymerej 9y ago
    I would guess they've already done this calculation. Similarly, due to externalities, the cost (to banks) of credit card and similar fraud is small compared to the expense of preventing it.
hellogoodbyeeee 9y ago
I don't really care where the money goes. I think that having one catastrophic event (huge lawsuits or fines leading to bankruptcy) for a corporate entity because of negligent security measures may lead other board rooms to move security measures up their priority list.
- e59d134d 9y ago
  I don't think that would matter either. Executives will get golden parachutes and/or get jobs elsewhere doing same thing. I think only solution is criminal charges/jail time against higher ups who prioritized profits over security.
- conductr 9y ago
  Could lead to actual legislation which IMO is needed. If companies like this fail miserably to protect data it's a sign something bigger is needed and missing. It's like the how Aurthur Andersen represented how accounting firms should not act, and failed miserably.
- walshemj 9y ago
  yes a case of "Pour encourjay lays ortras." as the late Terry Prachet puts it
- noxToken 9y ago
  It may cause security to get tightened to prevent these types of incidents, but I doubt that it will improve security culture. Going forward, we would theoretically be protected from a breach of this type in other companies, but proper security is a continually moving target. New methods exploits are discovered all the time. That's what I'm worried about - are they going to be proactive in securely protecting information against future threats, or will they just check a few boxes to continue with business as usual?
  - woogiewonka 9y ago
    Business as usual, and you know it.
Chaebixi 9y ago
> I'm not excited about this class action; If they win, the individual payout will be almost nothing ($10?). The lawyers are the only ones who will really "make out" with 10's of millions in fees. Equifax needs to feel pain so they behave better in the future. Their executives need to be taught that they need to invest in security or it will affect their balance sheet. That will happen even if the payout to individuals is small, just as long as it costs Equifax a lot.
s73ver_ 9y ago
I mean, as long as Equifax is hammered with damages, I'm happy.
frankydp 9y ago
Don't disagree just some more thoughts. The risk to the greatest number of people is the increase in interest rates if the lenders do not have the same level of trust in the credit reporting companies. 1% over 30 years is a lot. Secondly, just taking preventative measures for say 10 years of credit monitoring, from not the company that leaked your data, would cost 15x12x10 $1800.

by redm 9y ago

deegles 9y ago

I think a fund is a good idea, but how do you verify that the people claiming from the fund are the people who were affected? :) Keeping my identity/online data safe just seems so hopeless that I don't think about it anymore.

spinlock 9y ago

IMO, the best outcome would be to put Equifax out of business. I have had my identity stolen and they were complicit in enabling the fraud against me. Once you tell them you're NPI has been compromised, they get incredibly passive aggressive against you and refuse to allow you to manage the situation (i.e. they won't let you unlock your credit to apply for a mortgage). In short, this breach of public "trust" is only the smoking gun that proves how horrible Equifax is. But, they have a long history of being a parasitic organization that will hopefully die soon.

throwaway2048 9y ago
I'm not so sure about that, the data they have just gets resold to some other party when they go bankrupt, possibly many other parties and shit gets worse.
- stdgy 9y ago
  Is there any legal way to stop sales like that? If it were shown that Equifax were negligent in protecting the data on their systems, could a court demand that they remove all of the data to mitigate further harm?
- spinlock 9y ago
  There are already 3 main credit bureaus who have all of your data. It's not about the data it's about how unethical they are in preventing you from controlling the data. Think about it: if every person in america put a freeze on their credit, all of these companies would go out of business because they would no longer have a product to sell. It gets even worse if you're a victim of identity theft because they cannot charge victims of identity theft to freeze or un-freeze a credit report.
CoachRufus87 9y ago
> they won't let you unlock your credit to apply for a mortgage So how do you recover from something like that? Are you basically prevented from using credit for the rest of your life?
- ajross 9y ago
  There are legal limits to how long the data can be stored for. (I want to say it's a federal 7 year limit, but I might be wrong and it might be state laws). Eventually it all times out and your credit resets.
  - spinlock 9y ago
    That's not the issue. They are required to immediately remove incorrect information from your credit report. A freeze prevents them from reporting your credit to third parties (i.e. it prevents them from doing business). So, they hate people who freeze their credit. Their strategy seems to be to make having a credit freeze so onerous that you won't do it so they can continue to sell your information to their customers.
    - deleted 9y ago
      [deleted]
- spinlock 9y ago
  For many years I could not get a new credit card, overdraft protection on a checking account or a mortgage. I finally was able to completely remove the freeze so that I could secure a mortgage.
woogiewonka 9y ago
C'mon we live in the real world here. What makes you think Equifax will be put out of business? I agree, the scumbags should be put down like a suffering animal but that will never happen.

waynenilsen 9y ago

I think this comment is missing the fact that Equifax will be financially punished as a result, possibly resulting in better systemic security overall.

cmiles74 9y ago
I don't think this logically follows. More likely, Equifax will settle out of court for a much smaller sum. At that point there's now a literal dollar amount associated with a data breach. Perhaps some math will be done, proving out that there would need to be "N" number of breaches before the cost of settling out-of-court for the breaches would be more expensive then materially changing the way they manage data. And "N" number of breaches, that's just so unlikely. At that point it would be fiscally irresponsible to properly secure this data. They would owe it to their shareholders to continue with their shoddy security and data management procedures.
- ymerej 9y ago
  I would guess they've already done this calculation. Similarly, due to externalities, the cost (to banks) of credit card and similar fraud is small compared to the expense of preventing it.

hellogoodbyeeee 9y ago

I don't really care where the money goes. I think that having one catastrophic event (huge lawsuits or fines leading to bankruptcy) for a corporate entity because of negligent security measures may lead other board rooms to move security measures up their priority list.

e59d134d 9y ago
I don't think that would matter either. Executives will get golden parachutes and/or get jobs elsewhere doing same thing. I think only solution is criminal charges/jail time against higher ups who prioritized profits over security.
conductr 9y ago
Could lead to actual legislation which IMO is needed. If companies like this fail miserably to protect data it's a sign something bigger is needed and missing. It's like the how Aurthur Andersen represented how accounting firms should not act, and failed miserably.
walshemj 9y ago
yes a case of "Pour encourjay lays ortras." as the late Terry Prachet puts it
noxToken 9y ago
It may cause security to get tightened to prevent these types of incidents, but I doubt that it will improve security culture. Going forward, we would theoretically be protected from a breach of this type in other companies, but proper security is a continually moving target. New methods exploits are discovered all the time. That's what I'm worried about - are they going to be proactive in securely protecting information against future threats, or will they just check a few boxes to continue with business as usual?
- woogiewonka 9y ago
  Business as usual, and you know it.

Chaebixi 9y ago

> I'm not excited about this class action; If they win, the individual payout will be almost nothing ($10?). The lawyers are the only ones who will really "make out" with 10's of millions in fees. Equifax needs to feel pain so they behave better in the future. Their executives need to be taught that they need to invest in security or it will affect their balance sheet. That will happen even if the payout to individuals is small, just as long as it costs Equifax a lot.

s73ver_ 9y ago

I mean, as long as Equifax is hammered with damages, I'm happy.

frankydp 9y ago

Don't disagree just some more thoughts. The risk to the greatest number of people is the increase in interest rates if the lenders do not have the same level of trust in the credit reporting companies. 1% over 30 years is a lot. Secondly, just taking preventative measures for say 10 years of credit monitoring, from not the company that leaked your data, would cost 15x12x10 $1800.