Published: April 21, 2024 on our newsletter Security Fraud News & Alerts Newsletter.
Yet another mortgage giant, LoanDepot, has experienced a "cyberattack" according to the well-known lender. What's a suspected ransomware attack led the company to shut down affected systems after experiencing what they call an "encryption incident."
The California-based loan and mortgage company posted a statement online to its customers, saying "...we are working diligently to restore normal business operations as quickly as possible." The company boasts serving 27,000 customers every month and is one of the top mortgage lenders in the U.S.
This is currently believed to be a ransomware attack although LoanDepot has not confirmed it. They do, however, mention the incident involved encryption, a mainstay of ransomware. This type of cyberattack encrypts data sensitive to operations then demands a ransom payment for the key to unlock the data.
Businesses looking to avoid ransomware attacks need to do regular data backups separate from the system. That way, when ransomware encrypts the data, a backup is ready and waiting to get back to business without paying a ransom. The FBI warns to never pay a ransom demand since it only encourages more of these attacks.
The LoanDepot cyberattack is on of the latest in a string of strikes targeting the mortgage and loan industry in the United States. It happened on the heels of Mr. Cooper, the largest non-bank mortgage service in the U.S. suffering a similar cyberattack stealing the PII of more than 14 million customers. An earlier ransomware attack on Fidelity National Financial put the company offline for at least a week.
If you receive a notification of a data breach from your mortgage company or anyone, be sure to do a few things to protect your data as much as possible.
Change your password, ensuring it’s strong.
Enable multifactor authentication, if it is offered.
Enroll in any fraud protection that the organization offers. This will help you keep tabs on your credit. While it won’t keep anyone from using your information, these companies do alert you when someone tries.
Freeze your credit, if that is an option. This will prevent anyone, including you, from opening credit accounts in your name.
Keep an eye on your credit reports. You can get one from each of the three major credit agencies each year at no charge by going to annualcreditreport.com. Report any discrepancy to the bureau to get it resolved.
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