2017 Equifax

University of the People

PHIL 1404 - Ethics and Social Responsibility

Tewroh W Sungbeh
 Significant questions about legal compliance, moral behavior, and its possible long-term

effects on the corporation were raised by the 2017 Equifax data leak. This updated essay answers

the following inquiries while taking into account suggestions for improvement:

Legal Conformity: There are various aspects of the Equifax data leak that are linked to

legal compliance. First off, the intrusion into systems and compromise of personal data raises

concerns about data protection rules, including possible contraventions of the Health Insurance

Portability and Accountability Act (HIPAA) and state data breach notification laws (Smith &

Johnson, 2018). Second, insider trading, which is prohibited and is subject to regulatory

oversight, may be assumed to have occurred when Equifax executives sold company stock soon

after learning about the incident (Smith & Johnson, 2018).

The free credit monitoring and identity theft protection that Equifax provided to the

affected clients was a legally required response to the hack. Although not strictly criminal, the

executives' stock sales and the delay in publicly announcing the hack following its discovery in

July raise ethical questions. According to Smith & Johnson (2018), these acts appear to put the

company's financial interests above those of its clients.

Being Morally Resonant and Having Integrity: In this case, acting ethically would entail

immediately informing the impacted parties and regulatory authorities of the breach as required

by law. Equifax should have placed a higher priority on safeguarding customer data than on

profit. Furthermore, management ought to have held off on selling stock in the company until the
entire scope of the breach was understood and made public. Personal integrity in such a situation

includes accepting accountability, being open with communication, and prioritizing the needs of

the client (Smith & Johnson, 2018).

The company's reputation and integrity were severely tarnished as a result of the Equifax

data leak. By avoiding such a significant breach, rivals in the credit reporting sector gained an

edge. In-depth government inquiries and individual lawsuits against Equifax led to significant

financial losses and probable regulatory sanctions. The CEO's resignation caused even more

people to lose faith in the company's management. Long-term challenges will make it difficult

for Equifax to maintain its competitive position and win back customers' trust, which might

result in a loss of market share and decreased profitability (Jones, 2019).

Offering online privacy protection was a crucial first step, but it was insufficient to stop

the breach's scope. Equifax should have taken extra steps to lessen the impact of the breach,

restore trust, and stop similar breaches in the future. These actions consist of:

 Offering complete identity-theft resolution services, including monetary assistance for

impacted people.

 Putting in place strong data security procedures to stop future breaches.

 Improving consumer transparency and communication surrounding data security

procedures.
  Working proactively with regulatory organizations to make sure that data privacy

regulations are followed (Smith & Johnson, 2018).

The Equifax data leak serves as a sobering reminder of how crucial it is to prioritize

ethical conduct, legal compliance, and consumer trust when managing data security. Executive

stock sales and the postponed disclosure by Equifax both had negative effects on the business.

Transparent communication, giving client interests top priority, and putting effective data

protection measures into place are all necessary for acting morally and with personal integrity in

such circumstances. To ensure its continued success in the market, Equifax must acknowledge its

shortcomings and show a dedication to regaining confidence (Jones, 2019).

References

A. Jones (2019). Journal of Business Ethics, 145(2), 287–301. The Equifax Data Breach:

Implications for Business Ethics.

Johnson, L., Smith, J., & (2018). The Equifax Data Breach: A Legal and Ethical Analysis,

Business Ethics Quarterly 28(4), 497-521.