LoanDepot Cyberattack: $27 Million Fallout
The major American mortgage lender LoanDepot has disclosed the financial repercussions of a January cyberattack. According to the company’s report, the expenses associated with the incident have reached nearly $27 million.
At the beginning of 2024, LoanDepot fell victim to a ransomware attack, resulting in the encryption of data and the disruption of certain systems. It was later revealed that the confidential information of over 16 million customers was compromised, including names, addresses, phone numbers, and even Social Security numbers.
The cybercrime group known as Alphv/BlackCat, notorious for its ransomware attacks, has taken responsibility for the incident at LoanDepot. They have publicly listed the company on their data leak site and announced their intention to sell data they claim to have stolen.
The sum of $26.9 million encompasses costs related to the investigation of the incident, notification of affected customers, provision of identity protection services, as well as legal fees and settlement of lawsuits.
LoanDepot also reported that $25 million of the total expenses had been reserved for settling a class action lawsuit related to the cyber incident.
The LoanDepot case is not an isolated one. Recently, the electronics manufacturer Keytronic also reported losses exceeding $17 million due to a similar cyberattack.
