by LoanDepot, one of the largest retail mortgage lenders in the US, is currently grappling with the aftermath of a cyberattack that impacted its loan processing and phone service. The California-based company revealed in a filing on Monday with the Securities and Exchange Commission that an unauthorized third party had gained access to its systems and encrypted its data. As a precautionary measure, certain systems were shut down to contain the incident. loanDepot has contacted law enforcement and is currently assessing the potential impact of the attack on its financials.
While loanDepot has not confirmed the nature of the attack, it bears resemblance to a ransomware attack, where cybercriminals steal data before encrypting it and demanding a ransom to restore access. The attack is believed to have started over the weekend, although it is unclear whether any corporate or customer data was stolen during the breach, or when it was discovered. The company advised its customers on its website that recurring automatic payments were still being processed and that payments could be made by phone.
Founded in 2010, loanDepot prides itself as the nation’s fifth-largest retail mortgage lender with over $140 billion in outstanding loans and a workforce of 6,000 employees. The company services more than 27,000 customers each month.
loanDepot is currently working diligently to fully understand the extent of the incident and taking necessary steps to minimize any potential impact. As cyberattacks continue to rise globally, it is crucial for companies to strengthen their cybersecurity measures to protect both their operational integrity and the privacy of their customers’ data.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
