LoanDepot Suffers Major Cyberattack. What Can You Do If Your Mortgage Lender Gets Hacked? – Forbes Advisor

Mortgage lender loanDepot is scrambling to contain the fallout from a cyberattack that targeted the company’s phone and loan processing services, making it difficult for customers to access its systems.

In a filing with the SEC, loanDepot said that the unauthorized third-party activity included “access to certain company systems and the encryption of data.”

However, the company hasn’t disclosed whether the personal information of employees or customers was leaked in the cyberattack. The encryption of data suggests that the breach involved ransomware, although loanDepot hasn’t confirmed that.

LoanDepot said it has shut down some of its major systems while it works to restore normal operations. Meanwhile, law enforcement officials are seeking to determine the origin of the attack. The company said “leading forensics experts” are also investigating.

“We are working quickly to understand the extent of the incident and taking steps to minimize its impact,” the company said on its website. Updates about the attack will be posted on loanDepot’s “cyber incident update” page.

Based in Irvine, California, loanDepot is the nation’s fifth-largest retail mortgage lender and the second-largest nonbank retail originator. It services about 27,000 customers per month, according to its website.

This is the latest of several cyberattacks targeting mortgage-related companies. Last May, loanDepot announced a data breach that occurred in August 2022. Mr. Cooper, a mortgage broker with more than 14 million customers, experienced a similar attack a few months ago. And title insurance firms Fidelity National Financial and First American reported ransomware attacks in November and December last year.

How Can You Protect Yourself Against a Cyberattack?

A cyberattack—where hackers steal data from a computer, network or device for personal, criminal or political reasons—that affects your mortgage provider could put your personal data at risk. If your lender is attacked, here are a few steps your should take to defend yourself:

• Check for updates from the company. Your provider will likely post updates and disclosures about the security breach to alert affected customers and provide additional steps in response to the attack.
• Monitor bank accounts and credit reports. If you learn that an attack may have compromised your personal data, monitor your bank account statements and credit reports for any suspicious transactions. Make sure to report any unauthorized activity to your bank or credit card company.
• Purchase identity theft protection. You can use an identity theft protection service to protect yourself after an attack. These services search the web for any misuse of your personal information for credit cards, loans, social media or other illegal activities.