Equifax: Understanding Its Actions through Situational Crisis Communication Theory

The Equifax data breach took place in 2017 and was the largest data breach of its time. The breach affected 143 million individuals and caused large amounts of confidential and sensitive data, such as credit cards, birthdays, addresses, and social security numbers to be stolen (Brinkley-Badgett, 2018). This paper will closely analyze the Equifax data breach. Specifically, Equifax’s background, crisis history, and breach timeline will be broken down. These three components are all important when it comes to understanding Equifax’s actions. Timothy Coombs is a founder of Situational Crisis Communication Theory, and his interpretation of the theory will be used as a framework for this paper. Both his book, Ongoing Crisis Communication and article, Protecting Organization Reputations During a Crisis: The Development and Application of Situational Crisis Communication Theory, will be heavily referenced. Using Situational Crisis Communication Theory (SCCT) as a framework, these components will be assessed and categorized. “SCCT provides a mechanism for anticipating how stakeholders will react to a crisis in terms of the reputational threat posed by the crisis” (Coombs, 2007). By identifying the crisis type and crisis response strategies, Equifax’s actions will be analyzed and measured. The size, timeline, and media response will help identify what type of crisis Equifax falls into, and why their actions caused them to be categorized so. After analyzing the Equifax data breach, two other breaches will be analyzed and compared. The comparison of Equifax to Capital One and Home Depot, will help determine how Equifax could have been more effective through crisis response strategies. Capital One and Home Depot are two data breaches that were able to implement “effective” uses of crisis management and meet consumer expectations. Through the comparative analysis, recommendations as to what Equifax could have done differently will be made. The comparisons of their crisis type, actions, and response strategies will help shape recommendations for Equifax’s past crisis.