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US retail mortgage lender LoanDepot struggles with cyberattack

Posted on January 9, 2024 by Dissent

Frank Bajak reports:

The U.S. retail mortgage lender LoanDepot is struggling to recover from a cyberattack that impacted its loan processing and phone service.

In a filing on Monday with the Securities and Exchange Commission, the company said data was encrypted by the “unauthorized third party” who broke into company systems. It said certain unspecified systems were shut down to contain the incident.

LoanDepot has not said whether this was a ransomware attack, but it appears to be.

LoanDepot did not say whether any corporate or customer data was stolen during the break-in or when it was discovered. Ransomware criminals typically steal data before activating malware that scrambles data with encryption. That way, the criminals can extort the target even if it is able to quickly restore its networks from backups.

Read more from AP at ABC News.

Category: Financial SectorU.S.

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