Categories: Media Moves

Coverage: Equifax executives depart amid growing scandal

Equifax announced late Friday that its chief information officer and chief security officer would leave the company immediately, following the enormous breach of 143 million Americans’ personal information.

Ken Sweet of the Associated Press had the news:

The credit data company — under intense pressure since it disclosed last week that hackers accessed the Social Security numbers, birthdates and other information — also released a detailed, if still muddled, timeline of how it discovered and handled the breach.

Equifax said that Susan Mauldin, who had been the top security officer, and David Webb, the chief technology officer, are retiring. Mauldin, a college music major, had come under media scrutiny for her qualifications in security. Equifax did not say in its statement what retirement packages the executives would receive.

Mauldin is being replaced by Russ Ayers, an information technology executive inside Equifax. Webb is being replaced by Mark Rohrwasser, who most recently was in charge of Equifax’s international technology operations.

Dustin Volz and Diane Bartz of Reuters reported that Equifax has hired an outside firm to investigate:

The company also confirmed that Mandiant, the threat intelligence arm of the cyber firm FireEye, has been brought on to help investigate the breach. It said Mandiant was brought in on Aug. 2 after Equifax’s security team initially observed “suspicious network traffic” on July 29.

The company has hired public relations companies DJE Holdings and McGinn and Company to manage its response to the hack, PR Week reported. Equifax and the two PR firms declined to comment on the report.

Equifax’s share prices has fallen by more than a third since the company disclosed the hack on Sept. 7. Shares shed 3.8 percent on Friday to close at $92.98.

U.S. Senator Elizabeth Warren, who has built a reputation as a fierce consumer champion, kicked off a new round of attacks on Equifax on Friday by introducing a bill along with 11 other senators to allow consumers to freeze their credit for free. A credit freeze prevents thieves from applying for a loan using another person’s information.

Bryan Logan of Business Insider reported that Equifax has admitted that the breach could have been prevented:

The company said there was no evidence of a breach into its core consumer or commercial credit reporting databases, and has since admitted that the source of the breach was a software flaw that could have been prevented.

Three Equifax executives sold nearly $2 million in company stock just days after the breach.

The company said the executives “had no knowledge” of the incident beforehand, according to an emailed statement from the credit-monitoring agency.

Some US lawmakers have called for an investigation of the breach, with Equifax’s CEO expected to testify before Congress over the matter, and the company’s shares have plunged in the days since it was disclosed.

The breach could be one of the biggest in the United States, Reuters reported. Last December, Yahoo said more than one billion user accounts were compromised in August 2013, while in 2014 eBay had urged 145 million users to change their passwords following a cyber attack.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.

Recent Posts

CNBC taps Sullivan as “Power Lunch” co-anchor

CNBC senior vice president Dan Colarusso sent out the following on Monday: Before this year comes to…

8 hours ago

Business Insider hires Brooks as standards editor

Business Insider editor in chief Jamie Heller sent out the following on Monday: I'm excited to share…

9 hours ago

Is this the end of CoinDesk as we know it?

Former CoinDesk editorial staffer Michael McSweeney writes about the recent happenings at the cryptocurrency news site, where…

24 hours ago

LinkedIn finance editor Singh departs

Manas Pratap Singh, finance editor for LinkedIn News Europe, has left for a new opportunity…

2 days ago

Washington Post announces start of third newsroom

Washington Post executive editor Matt Murray sent out the following on Friday: Dear All, Over the last…

3 days ago

FT hires Moens to cover competition and tech in Brussels

The Financial Times has hired Barbara Moens to cover competition and tech in Brussels. She will start…

3 days ago