LoanDepot (NYSE: LDI), the fifth-largest retail mortgage lender in the U.S., was at the center of a significant cybersecurity breach. The company reportedly determined that an unauthorized third party had access to their encryption data and on January 8, it was reported to the U.S. Security and Exchange Commission (SEC). In response to the incident, LoanDepot shut down specific systems as they picked through them with a fine-tooth comb. In addition, they are working with leading forensic investigators as well as law enforcement to clear up the mishap.
Why it matters: The cyberattack on LoanDepot is yet another example of how massive companies are being targeted for their data. These companies must not only face disturbances to their operations but also safeguard their credibility.
- LoanDepot has funded more than $275 billion in loans since its start back in 2010. After this incident, customers of LoanDepot were unable to access their payment portal, leading to an outbreak of social media complaints from said customers.
- LoanDepot’s security breach occurred following a series of cyber incidents affecting companies within the mortgage industry. For example, Mr. Cooper, a mortgage loan servicer, grappled with the challenges posed by a cyberattack, ultimately leading to the compromise of sensitive information for nearly 14.7 million individuals.
- While it is not certain whether or not the incident will have a large impact on the company, it has been announced that they are working to continue assessing it.
Go Deeper –> LoanDepot hit by suspected ransomware attack – TechCrunch
