LoanDepot is a financial services company specializing in mortgage and personal loans. It is one of the largest nonbank lenders in the United States.
LoanDepot revealed a data breach this week affecting around 16.6 million individuals. The breach, stemming from a ransomware attack detected in early January, prompted the company to shut down specific systems as a preventive measure against further threats.
LoanDepot is a financial services company specializing in mortgage and personal loans. It is one of the largest nonbank lenders in the United States.
In response to the January 6 attack, the company informed customers that despite system shutdowns to mitigate the breach, recurring automatic payments would continue to be processed, albeit with delays in payment history updates.
“The Company has been working diligently with outside forensics and security experts to investigate the incident and restore normal operations as quickly as possible. The Company has made significant progress in restoring our loan origination and loan servicing systems, including our MyloanDepot and Servicing customer portals.” reads an update on the cyber incident provided by the company.
“Although its investigation is ongoing, the Company has determined that an unauthorized third party gained access to sensitive personal information of approximately 16.6 million individuals in its systems.”
Promptly initiating an inquiry into the incident, the company enlisted the assistance of cybersecurity professionals. LoanDepot also informed law enforcement and regulatory authorities about the breach.
Following the incident, payments through the customer servicing portal became inaccessible, and various other online portals such as MyloanDepot, HELOC, and the mellohome website were also offline.
Ransomware groups frequently employ stolen corporate and customer data as a bargaining chip in double-extortion attacks, compelling victims to pay a ransom under the threat of data exposure.
Considering that loanDepot retains sensitive customer financial and bank account details, individuals impacted by this breach should be aware that they could be susceptible to phishing attacks and potential attempts of identity theft.
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