Malware
Massive loanDepot Cyberattack Exposes Sensitive Data of 16.6 Million Individuals: Are You Affected?
LoanDepot, a leading US mortgage lender, has suffered a cyberattack and data breach, exposing the personal information of 1.66 million people. The breach occurred after a vulnerability in Accellion’s FTA software was exploited. LoanDepot is now facing a class-action lawsuit for failing to secure its customers’ sensitive data.
Millions of loanDepot customers affected by ransomware attack
LoanDepot, a prominent mortgage lender, recently admitted that the personal information of around 16.6 million people was stolen in a ransomware attack earlier this month. The company had to shut down some of its systems to contain the breach, leading to payment history delays and temporarily unavailable services on its customer portal.
What happened during the attack?
On January 6, loanDepot faced a cyber attack that forced it to take some of its systems offline, including the MyloanDepot, HELOC, and mellohome website portals. Later, the company confirmed that the incident was a ransomware attack, with the cybercriminals encrypting files on the compromised devices.
How is loanDepot responding to the breach?
Today, loanDepot announced that it would be notifying individuals impacted by the data breach and providing them with free credit monitoring and identity protection services. The company also stated that it has made significant progress in restoring its loan origination and loan servicing systems, including the customer portals. However, the investigation into the breach is still ongoing.
What does this mean for the affected customers?
Ransomware gangs often use stolen corporate and customer data to pressure victims into paying ransoms in double-extortion attacks. Because loanDepot stores sensitive customer financial and bank account information, those affected by this breach should be aware that they might be targeted by phishing attacks and identity theft attempts.
Unfortunately, loanDepot has yet to share what type of customer personal information was accessed and stolen from its systems. This is not the first time the company has experienced a data breach, as it had to disclose another incident in May 2023, resulting from an August 2022 cyberattack that exposed customer data.
Why is this a wake-up call for everyone?
LoanDepot is a major U.S. nonbank mortgage lender with nearly 6,000 employees and over $140 billion in serviced loans. The fact that even a large institution like this can fall victim to ransomware attacks highlights the importance of robust cybersecurity measures for companies of all sizes.
A call to action: Don’t let your guard down
It’s crucial to stay informed about cybersecurity, as the digital landscape is constantly evolving. No one is immune to cyber threats, and being proactive in protecting your personal information can make all the difference.
Keep coming back to us for more updates and insights on the world of cybersecurity. Our IT Services team is here to provide you with valuable information and guidance to help you stay safe in the digital world. Don’t hesitate to reach out and contact us!