Department of Justice launches criminal probe into stock trading by Equifax executives

Marco Green
September 19, 2017

Equifax has said the internal investigation of its security system and data breach is still on-going and the credit reporting company is still working with Mandiant and the FBI in the investigation. At the time, Equifax denied that the trades constituted insider trading, saying that the sale of stocks was an unfortunate coincidence and that the executives "had no knowledge that an intrusion had occurred at the time".

The company and the executives didn't respond to requests for comment.

The extent of the March hacking incident is unclear. It said the March incident wasn't related to the massive hack revealed earlier this month. The three executives sold shares worth nearly $1.8 million in early August.

The breach, which Bloomberg said Equifax had not previously disclosed publicly, took place in March.

Equifax has also confirmed reports that it was a known vulnerability in the open-source Apache Struts framework that was the initial attack vector into the breached application.

Equifax shares have lost a third of their value since it announced the breach.

Still, the news of another incident ramps up the pressure as Equifax is already facing multiple investigations over its data breach.

(NYSE:EFX) allegedly knew about its massive data breach that exposed 143 million American's sensitive financial details for several months before actually disclosing it.

The proposal, first reported Monday by The New York Times, would require Equifax, Experian and similar firms to adhere to the same consumer protection rules the state imposes on banks and insurance companies.

The company says it will notify by mail all who had personally identifiable information stolen. They did so with data for roughly 44 percent of the US population. Scammers can make it look like they're calling for a specific company. "It's a scam. Equifax will not call you out of the blue".

Bloomberg says it also reviewed an internal memo from the bank, dated September 14, which noted that the bank's wealth and management division had linked a test and development site to Equifax in order to share information.

Other reports by Click Lancashire

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