Equifax Inc. (EFX Equifax Inc EFX 123.23 -13.66%) shares plummeted about 20% in early trading on Friday after a massive data breach that may have exposed the names, social security numbers, birth dates, addresses and driver’s licenses of 143 million U.S. consumers. In addition, the credit card numbers for about 209,000 U.S. consumers may have been stolen as part of the attack that occurred from mid-May through July before it was discovered on July 29 of this year.
The impact of data breaches on long-term performance is relatively benign, but the impact could be much larger for credit bureaus. Financial institutions that have historically provided data to these credit bureaus may question these arrangements, especially given the high cost of dealing with affected customers. Equifax could also face class action lawsuits and other costly legal actions stemming from the passive data breach affecting nearly half of the U.S. population. (See also: The Top 3 Credit Bureaus.)
Equifax shares plummeted in early trading after revealing a data breach affecting nearly half of the U.S. population, but where are the key levels to watching moving forward? …read more
Read more here: Equifax Breach Opens the Door for Short-term Traders