The Equifax Story: From Credit Bureau to Global Data Company
Equifax is one of the three major credit reporting agencies in the United States, with a history dating back to 1899. Originally founded as the Retail Credit Company, it initially collected information for the insurance industry before expanding into consumer credit reporting. Today, Equifax operates in 24 countries and employs approximately 11,000 people worldwide.
Equifax's Data Collection Practices
Equifax collects a vast array of consumer information from multiple sources:
- Creditor Data: Information from banks, credit card issuers, auto lenders, and mortgage companies
- Public Records: Court records, bankruptcy filings, tax liens, and civil judgments
- Alternative Data: Utility payments, rent payments, and telecommunications data
- Employment Data: Information from employers and payroll processors
- Consumer-Reported Data: Information consumers provide directly through disputes or identity verification
The 2017 Data Breach: A Turning Point
In September 2017, Equifax announced one of the largest data breaches in history, affecting approximately 147 million consumers. The breach exposed sensitive personal information including:
- Names and addresses
- Social Security numbers
- Birth dates
- Driver's license numbers
- Credit card numbers for 209,000 consumers
The breach resulted from failure to patch a known vulnerability in the Apache Struts web application framework. Equifax faced widespread criticism for its response, including delayed notification to affected consumers and inadequate customer support.
Post-Breach Reforms and Security Improvements
Following the breach, Equifax implemented significant security improvements:
- Invested over $1.25 billion in security infrastructure
- Appointed a new Chief Security Officer and Chief Technology Officer
- Implemented enhanced encryption and access controls
- Established a 24/7 security operations center
- Launched free lifetime credit monitoring for affected consumers
Equifax Products and Services
Equifax offers a wide range of products for both consumers and businesses:
Consumer Services
- Equifax Complete™: Credit monitoring and identity theft protection
- Lock & Alert™: Credit locking service (free for all consumers)
- Dispute Process: Online and mail-in dispute resolution
- Credit Score Simulator: Tool to understand how actions affect your score
Business Solutions
- Workforce Solutions: Employment and income verification services
- Fraud Prevention: Identity verification and fraud detection tools
- Marketing Services: Targeted marketing based on credit data
- Analytics: Advanced data analytics for risk assessment
Equifax Scores vs. FICO Scores
Equifax provides several scoring models:
- Equifax Risk Score: Their proprietary scoring model
- FICO Scores: Traditional FICO scores based on Equifax data
- VantageScore: Developed jointly with TransUnion and Experian
- Industry-Specific Scores: Custom scores for mortgage, auto, and credit card lending
How to Protect Yourself After the Equifax Breach
- Check if you were affected at equifaxsecurity2017.com
- Consider placing a credit freeze (now free by federal law)
- Monitor your credit reports regularly
- Consider identity theft protection services
- Be vigilant for phishing attempts using Equifax breach information
Final Assessment: While Equifax's 2017 data breach severely damaged consumer trust, the company has made substantial investments in security improvements. Their free credit freeze service and lifetime monitoring for affected consumers represent positive steps. However, consumers should remain vigilant and consider using multiple credit monitoring services rather than relying solely on Equifax.