Equifax is a company that was relatively low-key until a few weeks ago. That all changed when a security breach was reported that jeopardized the finances of 145.5 million Americans (BBC, 2017). However, their woes seem to continue to grow, as there were reports of new malware being attached to the company’s help page. This new breach has brought up questions regarding the values, finances, and future of Equifax.
Equifax has a straightforward value proposition. Their job is to keep credit information safe for their millions of customers. They are not a small company that was subject to a small hack. This is a multinational, multi million-dollar company that did not perform its due diligence regarding security and put their consumers at risk. Their lack of oversight opened to door for identity theft, fraud, fake tax returns and more. Their complacency regarding security showed their customers that they don’t value as much, and they do not adhere to their core principals.

Equifax’s breach has affected their financial performance. After the original breach, stock prices fell around 30% (NYSE, 2017). Such a drop in their valuation is another slap in the face for their customers, some of who could have invested in Equifax. Moreover, a terrible performance has surely placed loads of pressure onto the company’s brass. The obligation to return the company to high levels of profits results in the company cutting corners and making more mistakes, as they did with their help page. Equifax should be used as a poster child to information companies about the negative impacts of not taking security seriously. Through heinous mistakes, Equifax has gifted their competition with new customers and new opportunities to gain market share.
The future of a company after a huge blunder is often uncertain. There will surely be leadership changes, as seen with Samsung and Uber after their PR debacle. Their stock price was hit with the initial drop, and their credibility rating has fallen below 200 (WSJ, 2017). The share price has been rising steadily over the last month, pointing towards a rebuild of the company’s stock levels. That rebuild has faced some obstacles after the latest malware reports. Consumers no longer place the same trust in the company that they had before. This loss of trust consequentially affects Equifax in the long run, as competitors can now snatch up customers.

Equifax put the lives of 150 million Americans at risk. By allowing the initial breach, as well as the malware link on their help page, Equifax has forced itself onto a rough path. There are doubts if Equifax will reach the levels that it was once at, and only time will tell how they mold as a company.

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References:
Equifax removes webpage after malware issue. (2017, October 12). Retrieved October 14, 2017, from http://www.bbc.co.uk/news/business-41601871
Equifax’s Credibility Rating Falls Below 200. (2017, October 13). Retrieved October 14, 2017, from https://www.wsj.com/articles/equifaxs-credibility-rating-falls-below-200-1507909546
Photos:
http://www.mytotalretail.com/webinar/4-ways-to-improve-consumer-trust-online-again/
https://www.forbes.com/sites/winniesun/2017/10/02/what-you-should-do-now-after-the-equifax-security-leak/#1e487f952123