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Equifax Data Breach Assessment
Student’s Name
Institutional Affiliation
Course Code and Title
Instructor’s Name
Due Date
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Do You Think the Company Reacted Appropriately Upon Learning About the Breach?
The company reacted inappropriately. Equifax's Data breach occurrence should have
called for the company's top officials to make tough decisions by reacting with sound mind upon
learning of the hacking incident (Richard). Unfortunately, the company's reporting and control
measures failed, leading to the widespread violation of personal information privacy rights
(Wallstreet Journal, 2017). The company failed to react appropriately, as established in the
investigation of Lawyer John Kelly. According to the board, he was involved in the hack cover-
up and mishandling of the situation after the breach had already happened to sell stocks before it
was made public since the stock would fall below market value. After the incident, the CEO
blames junior IT instead of collectively handling and neutralizing the situation.
What Type of Ethical Climate Existed at Equifax, And Did This Contribute to The
Hacking Issues There?
There was a system security weakness. The company CEO, Richard Smith, admitted that
he and other executives knew there was a system security weakness. He also reveals that a single
employee did not pay attention to security warnings and therefore did not fix the security
problems. The CEO added that their software system design failed to scan for patches vulnerable
to attack and access to private information.
Ignorance by the executives. Equifax’s internal control mechanisms were either ignored
or dysfunctional. On the other hand, the executives were guilty of wrongdoing by not actively
preventing the breach, according to the director of Georgetown University's graduate program,
Fredrick Lemieux. He also observed that the executives were more concerned about the
company's stocks rather than protecting customers' private information. The company delayed
going public about the breach and relying entirely on a single employee contributed to the
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hacking effect. Failure of the company's system. Equifax's website was vulnerable, internal and
reporting measures failed, and an executive who only thought of managing stocks without caring
about private information led to the incident being uncontrollable and failing.
What Changes Should Managers and The Board of Directors Make Now to Reduce to
Likelihood of An Incident Like This Occurring in The Future?
The company should employ the following activities to ensure that hacking is not
repeated. These activities include, more scrutiny of security software and monitoring of web
pages, especially where customers log in their details. The security system and infrastructure task
should be handled by multiple professional skilled individuals rather than trusting it entirely to
one person (Richard, 2017). All employees, including executives, should be monitored to avoid
breaches and leakages in the security system. Finally, the company should collect more details or
information from customers, employees, and applicants to avoid vulnerability. Everyone
accessing the system should be authenticated. The board of directors should create a more robust
and active internal and control measures unit to handle people’s privacy policies and other public
relations issues.
Types of Ethics Training Would You Recommend for Equifax Employees
The company should roll out an ethics program in which every employee participates.
There should be new policies and guidelines which every worker should follow. Employees
should know their tasks and job descriptions exclusively. The employees should be taught proper
cyber hygiene and raise awareness of the need for a secure system and privacy of customers'
information. Ensure that all employees know the level of access to the system. Teach employees
about the legal and financial consequences of security breaches and information leaks.
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Reference
The Morning Risk Report: Equifax Breach Could Spur New Round of Training,” The Wall
Street Journal, September 11, 2017, www.wsj.com.
How to Explain the Equifax Breach? Start with the Culture,” Georgetown University, September
15, 2017, ses.georgetown.edu.
Equifax CEO Richard Smith to Exit Following Massive Data Breach,” The Wall
Street Journal, September 26, 2017, www.wsj.com.
