The Information Commissioner’s Office (ICO) has levied a £500,000 fine on Equifax for its failure to protect the personal data of up to 15 million UK citizens during a significant cyber-attack in 2017.
The breach, which occurred between 13 May and 30 July 2017 in the United States, had a global impact, affecting 146 million customers worldwide. Despite the breach taking place in the US, Equifax Ltd was held accountable as it was responsible for the personal data of its UK customers. The investigation revealed that the UK branch had not ensured its American parent company, Equifax Inc, adhered to essential data protection measures.
The ICO’s investigation, conducted alongside the Financial Conduct Authority, unearthed numerous deficiencies at the credit reference agency. These failures included retaining personal data longer than necessary and leaving it vulnerable to unauthorised access. The probe was carried out under the Data Protection Act 1998 (DPA 1998), as the incident happened before the advent of the stricter GDPR laws in May of the subsequent year. Consequently, the fine imposed was the maximum permitted under the DPA 1998.
The ICO identified that Equifax contravened five out of eight data protection principles, including failure to secure personal data, poor retention practices, and lack of legal basis for international data transfers. Elizabeth Denham, Information Commissioner, stated, “The loss of personal information, particularly where there is the potential for financial fraud, is not only upsetting to customers, it undermines consumer trust in digital commerce. This is compounded when the company is a global firm whose business relies on personal data. We are determined to look after UK citizens’ information wherever it is held. Equifax Ltd has received the highest fine possible under the 1998 legislation because of the number of victims, the type of data at risk and because it has no excuse for failing to adhere to its own policies and controls as well as the law.”
The investigation disclosed that inadequate and ineffective measures were in place to manage personal information. Significant problems were found with data retention, IT system patching, and audit procedures. The ICO also revealed that the US Department of Homeland Security had warned Equifax Inc about a critical vulnerability as early as March 2017. Unfortunately, sufficient steps to address the vulnerability were not taken, meaning a consumer-facing portal remained unpatched.
The compromised personal information included names, dates of birth, addresses, passwords, driving licence numbers, and financial details. Ms Denham further remarked, “Many of the people affected would not have been aware the company held their data; learning about the cyber-attack would have been unexpected and is likely to have caused particular distress. Multinational data companies like Equifax must understand what personal data they hold and take robust steps to protect it. Their boards need to ensure that internal controls and systems work effectively to meet legal requirements and customers’ expectations. Equifax Ltd showed a serious disregard for their customers and the personal information entrusted to them, and that led to today’s fine.”
A spokesperson for Equifax commented, “We have received the Monetary Penalty Notice from the Information Commissioner’s Office on Wednesday afternoon and are considering the detailed points made. Equifax has cooperated fully with the ICO throughout its investigation, and we are disappointed in the findings and the penalty. As the ICO makes clear in its report, Equifax has successfully implemented a broad range of measures to prevent the recurrence of such criminal incidents and it acknowledges the strengthened procedures which are now in effect. The criminal cyber-attack against our US parent company last year was a pivotal moment for our company. We apologise again to any consumers who were put at risk. Data security and combatting criminal digital activity is an ongoing battle for all organisations that requires continued innovation and attention. We have acted and continue to act to make things right for consumers. They will always be our priority.”
The gravity of Equifax’s failures and the subsequent repercussions highlight the critical importance of robust data protection measures, especially for global entities handling sensitive personal information.
