Equifax may be trying to move on from its 2017 data breach but the courts are doing their level best to keep the incident in the news, with former tech chief Jun Ying being handed a four month jail term – and a massive fine – after being found guilty of insider trading.
The incident, which affected 143 million people worldwide, has already cost the firm $1.35bn (£1.1bn) and has been branded “the greatest security catastrophe of modern times”.
The US court heard how chief information officer Ying worked out what had happened before he was officially informed by Equifax.
He then looked online to see how a major hack on rival Experian had affected the company’s stock price. Within an hour of discovering how Experian’s shares had plummeted after a much smaller hack, Ying exercised all of his Equifax stock options and sold those shares for $950,000 (£680,000).
The court was told that this amounted to illicit trading because Ying managed to avoid losses of $117,000 (£93,000) as, once the news broke, Equifax shares crashed through the floor.
US Attorney Byung J Pak said: “Ying thought of his own financial gain before the millions of people exposed in this data breach even knew they were victims. He abused the trust placed in him and the senior position he held to profit from inside information.”
Alongside a four-month prison sentence, the ex-CIO has been ordered to pay restitution of the $117,000 (£93,000) losses he avoided, as well as a $55,000 (£44,000) fine.
He is the second Equifax executive to be fingered for trying to profit from the incident; back in October, former manager Sudhakar Reddy Bonthu was sentenced to eight months house arrest, fined $50,000 and forced to pay back over $75,000.
And, no doubt much to Equifax’s exasperation, it is highly unlikely that this case will draw a line under the incident; the data giant also faces a flood of legal action from US consumers, while the Canadian authorities recently revealed they will be monitoring the business for the next six years.
Canadian data regulator to monitor Equifax for 6 years
Former Equifax executive sentenced for insider trading
Equifax first to be hit with maximum £500k data fine
Equifax tries to kill off ‘far fetched’ data breach claims
Equifax hires new chief exec from private equity giant
Equifax could face final bill of $600m for data breach
Former Equifax tech chief charged with insider trading
Flaw on Equifax system was exposed over 6 months ago
44m Brits could be affected by Equifax US data breach
Equifax rocked as mega hack exposes 143m consumers
To leave a comment please register – it takes less than a minute and is free of charge. You will also get our weekly email update The DM Report (to opt out contact firstname.lastname@example.org). If you are an existing user, please log in. If you have forgotten your log-in details please email email@example.com to get them reset!