After the bell on Thursday, information solutions firm Equifax (NYSE:EFX) announced a major cybersecurity incident that could potentially impact nearly half of the consumers of the United States. While shares fell in the after-hours session, things are likely to get much worse, especially after it was discovered that three insiders sold shares of the company right after this breach was discovered.
For those that don't follow the company, it prides itself on managing and protecting data, so this is a very embarrassing incident. Imagine what the outcry would be if a major bank had a ton of its money stolen, perhaps yourmoney that was supposed to be safeguarded. Unfortunately, the breach also was related to UK and Canadian resident information, so this is not just an incident limited to the US. The investigation surrounding this problem is not finished yet, so it is possible that the news could get even worse.