loanDepot Data Breach Compromises Sensitive Information of 16.6 Million Customers

One of America’s leading non-bank mortgage providers, loanDepot, said that the recent security incident exposed the personal information of nearly 16.6 million customers.

Described as a ransomware attack, the January 8th cyber incident not only forced the company to shut down some of its IT systems, but it also adversely impacted its normal business operations.

‘The Company has made significant progress in restoring our loan origination and loan servicing systems, including our MyloanDepot and Servicing customer portals,’’ it said.

In a filing with the US Securities and Exchange Commission (SEC), loanDepot disclosed further details about the attack. It said that unauthorized hackers had gained access to some of its systems and encrypted data, including stealing personal information of millions of customers.

‘’Though our investigation is ongoing, at this time, the Company has determined that the unauthorized third-party activity included access to certain Company systems and the encryption of data.’’

‘’Upon detecting unauthorized activity, the Company promptly took steps to contain and respond to the incident, including launching an investigation with assistance from leading cybersecurity experts, and began the process of notifying applicable regulators and law enforcement.,’’ loanDepot said.

Although it did not share details about the type of customer data accessed, loanDepot assured authorities that it would notify the impacted individuals and also provide free credit monitoring and identity protection services.

The company also established a new microsite at loandepot.cyberincidentupdate.com to inform various stakeholders about additional operational updates.

Additionally, loadDepot said that it would continue with its investigation to determine the material impact of the incident.

With the increasing attacks on financial institutions, the risks of having their personal information stolen and misused has increased for customers. Moreover, having personally identifiable information (PII) of individuals, allows hackers to commit various kinds of crimes, including phishing attacks, identity and financial thefts.