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It sounds like most of these costs are just from having to finally do the things they skimped on in the first place. If so, it's not really a loss compared to i

by _bxg1 7y ago

It sounds like most of these costs are just from having to finally do the things they skimped on in the first place. If so, it's not really a loss compared to if they had taken the right steps at the beginning. So it may not really disincentivize them from cutting corners again in the future. It'd be like if the only punishment for getting caught cheating on a test was "well now you have to take the test without cheating". You're probably going to give it a try every time. I'm seeing a pattern with these "Congressional hearings" where politicians bring in CEOs, let off a few zingers to really stick it to 'em, score some points with their constituents, and then... do absolutely nothing of substance.

jiveturkey 7y ago
> It sounds like most of these costs are just from having to finally do the things they skimped on in the first place. Source? It's not TFA. TFA only talks about legal costs in the past, and doesn't state it but implies future projections are also for legal costs. With $700MM of legal costs in 1 quarter, if that is 49% of the total (51% --most-- going to finally do the things) expenditure, that's $1.4bn in one quarter. Their entire 2018 revenue was just $3.4bn ($835MM in Q4).
- _bxg1 7y ago
  The article placed a general emphasis on "cybersecurity costs"; I guess it didn't really indicate what percentage was that vs. litigation, but any "cybersecurity costs" are as I described above: costs that should've already been spent before the breach and are just being forced now. Only the litigation is a true "penalty".
  - jiveturkey 7y ago
    Absolutely, only the litigation is a penalty. The article specifically and explicitly stated, $700MM in legal costs. > Lawsuits and investigations have cost $690 million in the first quarter of 2019 alone,
travisjungroth 7y ago
It’s more like if you got caught cheating during a test you had to stop cheating but kept taking the same test and got credit for all of your previous answers. Equifax still has its past profits.

by _bxg1 7y ago

jiveturkey 7y ago

> It sounds like most of these costs are just from having to finally do the things they skimped on in the first place. Source? It's not TFA. TFA only talks about legal costs in the past, and doesn't state it but implies future projections are also for legal costs. With $700MM of legal costs in 1 quarter, if that is 49% of the total (51% --most-- going to finally do the things) expenditure, that's $1.4bn in one quarter. Their entire 2018 revenue was just $3.4bn ($835MM in Q4).

_bxg1 7y ago
The article placed a general emphasis on "cybersecurity costs"; I guess it didn't really indicate what percentage was that vs. litigation, but any "cybersecurity costs" are as I described above: costs that should've already been spent before the breach and are just being forced now. Only the litigation is a true "penalty".
- jiveturkey 7y ago
  Absolutely, only the litigation is a penalty. The article specifically and explicitly stated, $700MM in legal costs. > Lawsuits and investigations have cost $690 million in the first quarter of 2019 alone,

travisjungroth 7y ago

It’s more like if you got caught cheating during a test you had to stop cheating but kept taking the same test and got credit for all of your previous answers. Equifax still has its past profits.