Loan company loanDepot says the recent ransomware attack it suffered led to the data breach of approximately 16.6 million people.
The attack took place on January 6th, and the company was forced to shut down some of systems to contain the breach. As a result, there were some issues and delays in some of the company's operations.
Payments through the customer service portal were also unavailable after the incident, while several other online services, including MyloanDepot, HELOC, and the mellohome website, also experienced issues.
See also: VF Corporation: Ransomware attack led to data breach of 35 million people
After several days of investigation, loanDepot confirmed that it was a ransomware attack. In a new announcement, however, loanDepot also speaks of a data breach affecting millions of people. Personal data was stolen and the company will begin notifying those affected, while also providing them with free credit monitoring and identity protection services.
Immediately after the cyberattack, the company began working on restoring its loan servicing systems, including MyloanDepot and Servicing customer portals.
“Although its investigation is ongoing, the Company has determined that an unauthorized third party gained access to sensitive personal information of approximately 16.6 million individuals on its systems“.
It was almost certain that we would hear about a data breach after the loanDepot ransomware attack . These days, most gangs steal victims' data and threaten to leak it to exert even more pressure and get victims to pay the ransom.
See also: Framework Computer: Suffered a data breach
Since loanDepot stores sensitive financial and bank account of customers, things are very serious.
However, loanDepot has not yet disclosed the type of personal information that was compromised.
In May 2023, loanDepot disclosed another data breach that resulted from a cyberattack in August 2022 and exposed customer data.
What are the potential consequences of this breach for customers?
One of the potential consequences of a data breach for those affected is identity theft. Hackers can use customers' personal and financial information to create fake identities or conduct illegal transactions.
Customers may also face financial losses. This can happen if hackers gain accesstoaccounts or credit cards and make uncontrolled transactions.
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See also: HMG Healthcare: Confirmed data breach
Another consequence is privacy violations. Customers' personal data may be leaked online ,which can lead to further privacy violations.
Finally, customers may lose trust in the lender. A data breach can lead to a significant loss of the company's reputation and credibility.
Source: www.bleepingcomputer.com
