Equifax Case Study: Breach Prediction

  • Threat Beta,  

Equifax’s Threat Beta vs. Stock Price

Background

Equifax had a major data breach that led to the loss of a vast among of proprietary personal data. During the aftermath of the major Equifax data breach, they were the targets of other attacks. One successful attempt was a spoofing attack that mimicked Equifax’s website for people seeking information on the breach.

Financial Impact

The Equifax data breach led to a 40% decrease in the stock price and billions in lost equity value. Years later, the stock still hasn’t surpassed previous highs.

Lessons Learned

The potential of billions in losses should have made effective cybersecurity investments a priority at Equifax. After the last major attack, Equifax started to make the investments necessary to lower their cybersecurity risk. It’s not at the lowest level since we began measuring risk. Additionally, major breaches can lead to additional attention to cybersecurity vulnerabilities at the target company. Equifax’s customers were a victim of a spoofing attack. Lastly, Equifax is making the investments to decrease their Threat Beta, which dropped breach probability to below 1%.

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