Equifax Hack Points to Possible Corporate Governance and Business Model Factors Leading to Weak Protections for Borrowers’ Personal Data

Equifax, one of the “big three” credit reporting firms, recently disclosed that social security numbers and other personal information of some 143 million mostly U.S. consumers had been compromised through hacking. This was not a sudden discovery of a serious security issue. Equifax had been alerted in March 2017 by Cisco of an online security flaw affecting…

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Wells Fargo’s fraudulent account openings: What are the (initial) risk management lessons?

It is intriguing that the intense level of media attention and Congressional furor over Wells Fargo’s fraudulent account opening scandal may equal or exceed that involving the LIBOR and Forex rigging scandals that resulted in billions of dollars of fines. The financial institutions that settled the LIBOR cases had allegedly manipulated the benchmark interbank interest…

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