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Equifax CEO Smith Out
29 September 2017, 12:16 | Bernice Figueroa
Equifax CEO Smith Out
San Francisco City Attorney Dennis Herrera filed a lawsuit on Tuesday against Equifax, the credit reporting firm which suffered a massive data breach affecting personal identifying information of 143 million people - more than half the country's adult population.
Feidler stated the company is still focused on the aftermath of the massive data breach that has inflicted severe reputational damage on the company: "The Board remains deeply concerned about and totally focused on the cybersecurity incident". "On behalf of the Board, I express my appreciation to Rick for his 12 years of leadership", Feidler commented.
Kentucky Attorney General Andy Beshear says the state must take action to protect consumers from data breaches like the ones that struck credit reporting agency Equifax - and he's crafting a bill. Hackers could have had access to names, birthdays, addresses, social security numbers, driver's license numbers, and credit card information.
Richard Smith will also forego his annual bonus as part of his termination agreement. The company said that it will now begin looking for a permanent replacement CEO - searching both internally and externally.
Equifaxconfirmed that Smith is scheduled to face congressional committee investigators early next month.
Equifax traded down more than 2 percent on the news.
Smith may not be the last senior leader whom the board will have to replace.
Smith had been scheduled to appear October 3 during a Congressional hearing that would likely have turned into a public lambasting.
Smith, who had been CEO since 2005, will also leave the chairman post.
Equifax first admitted that its systems had been breached on 7 September, with hackers exploiting a U.S. website application vulnerability to steal the personal details of approximately 143 million USA consumers. Equifax's chief information officer and chief security officer also left on September 15. "The patch for that software had been made available for months but Equifax failed to apply it", a security expert familiar with the Equifax breach confirmed to The Liberal Advocate News Tuesday. Digital burglars used the crack in Equifax's computer systems to break in from May 13 through July 30, according to the company's accounting.
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Equifax is now at the center of several investigations into how the breach occurred and what took so long to disclose it. However, the vulnerability could have been fixed back in early March when patches became available.
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