Loan Depot Cyber Attack: How to Protect Your Mortgage and Personal Info

Loan Depot's recent cyber attack has left many homeowners and mortgage holders feeling vulnerable and concerned about their personal and financial information. The attack exposed sensitive data, including Social Security numbers and loan details.

The breach occurred when hackers gained access to Loan Depot's systems, compromising the personal and financial information of thousands of customers. This is a stark reminder of the importance of protecting our online presence.

To mitigate the risk of identity theft and financial loss, it's essential to monitor your credit reports and bank statements closely. This will help you quickly detect any suspicious activity.

Loan Depot has notified affected customers and offered free credit monitoring and identity theft protection services.

For another approach, see: Personal Loan Depot

LoanDepot, one of the largest nonbank retail mortgage lenders in the USA, has suffered a cyberattack that caused the company to take IT systems offline, preventing online payments against loans.

The attack occurred recently, and customers began experiencing issues when trying to log in to the company's payment portal to pay loans or contact them by phone.

LoanDepot confirmed they suffered a cyber attack and are working with law enforcement and forensics experts to investigate the incident.

The company has taken certain systems offline to restore normal business operations as quickly as possible.

Recurring automatic payments will continue to be processed, but there will be a delay in it appearing in the payment history.

Customers should contact the company's call center to make a payment, as using the servicing portal to make a new payment will not be possible.

LoanDepot holds sensitive information about its customers, such as financial and bank account information, so customers should be on the lookout for potential phishing attacks and identity theft.

This is not the first time LoanDepot has been affected by a cyberattack, as they disclosed a data breach in May resulting from a cyberattack in August 2022 that exposed customer data.

In a similar incident, mortgage lending giant Mr. Cooper suffered a cyberattack in November 2023, which exposed the personal data of 14.7 million customers.

On a similar theme: Jpmcb Data Breach

Unfortunately, there's no seal of approval for a mortgage lender's culture of data security, so it's up to you to take matters into your own hands.

Plaggemier recommends creating strong passwords, setting up multi-factor authentication, keeping operating systems and antivirus software up to date, and staying vigilant against phishing and other social engineering attempts.

Data breaches can happen to anyone, so it's essential to be proactive in protecting yourself.

loanDepot, one of the largest nonbank retail mortgage lenders in the USA, recently suffered a cyberattack that caused the company to take IT systems offline.

You can mitigate the impact of a cyberattack by keeping an eye on your company's website and monitoring your email for updates.

If you discover that your personal information may have been exposed, watch your bank account statements and credit reports for suspicious transactions.

loanDepot's customers should be on the lookout for potential phishing attacks and identity theft, given that the company holds sensitive information about its customers.

Recommended read: Truist Bank Data Breach

You can protect yourself by purchasing identity theft protection services that search the web for any misuse of your personal information.

Here are some key actions to protect yourself:

Hackers target mortgage lenders because of the sensitive information involved, including personal and financial data. This can lead to identity theft and financial loss.

The FBI received over 11,000 complaints of real estate fraud in 2022, including wire fraud attempts to steal down payments. Bad guys will go where the money is.

To protect yourself, double-check the sender's address in emails and look for red flags like urgent messages changing account numbers at the last minute. If you get an email like this, it's probably a scam.

If your down payment goes to the wrong account, act fast – you have the highest chance of recovering your money within 24 hours of discovering the error. Call your bank and issue a recall notice, and report fraud to the local police or FBI office.

Here are some steps to take if you suspect a mortgage scam:

LoanDepot has made significant progress in restoring its services after the cyberattack, but the company is still working to investigate the attack and fully resume normal operations.

The company has restored automatic loan payments, the Servicing customer portal, the HELOC customer portal, and the MyloanDepot portal, which is a positive sign that they are committed to getting back to normal.

LoanDepot has confirmed that about 16.6 million individuals were affected by the cyberattack, and they are working with law enforcement and forensics experts to investigate the incident.

The company has apologized for any inconvenience caused to its customers and is focused on resolving the matter as soon as possible.

LoanDepot's customers can still make payments, but they need to contact the company's call center instead of using the servicing portal, which is a temporary measure to ensure security.

Customers should be on the lookout for potential phishing attacks and identity theft, as the cyberattack may have exposed sensitive information such as financial and bank account details.

LoanDepot has a history of dealing with cyberattacks, having disclosed a data breach resulting from a cyberattack in August 2022 that exposed customer data.

The company is taking steps to minimize the impact of the attack, but customers should remain vigilant and monitor their accounts closely.

Mortgage scams can be incredibly sophisticated, often targeting multiple players in the mortgage process. Think of all the players involved: your lender, title insurance providers, real estate agents, homeowners insurance companies, and escrow services. Each one becomes an opportunity for an identity criminal to infiltrate that organization and gain access to all the information throughout the process.

Home buyers are often inundated with time-sensitive emails and phone calls, making them vulnerable to phishing scams. Phishing scams prey on that sense of urgency, notes Lisa Plaggemier, executive director at the nonprofit National Cybersecurity Alliance.

Always double-check the sender's address to protect yourself from scams. Often, criminals will use a lookalike that's just one character off from the real thing. The FBI received more than 11,000 complaints of real estate fraud in 2022, including wire fraud attempts to steal a down payment.

If you get an urgent-sounding email changing the account number at the last minute, it's probably a scam. Ask your lender or agent to verify the official details of the wire transfer to avoid becoming a victim. According to the Coalition to Stop Real Estate Wire Fraud, an industry education group, you have the highest chance of recovering your money within 24 hours of discovering the error.

Act fast if your down payment goes to the wrong account. Call your bank and issue a recall notice, and report fraud to the local police or FBI office and file a report at reportfraud.ftc.gov.

If your mortgage lender is hacked, check official channels for updates, as Mr. Cooper and LoanDepot did by setting up incident response webpages.

You can make payments by phone, mail, or money transfer services like Western Union or MoneyGram, as LoanDepot recommended.

Customers who couldn't make payments due to a cyberattack would not incur penalties, late fees, or negative credit reporting, according to Mr. Cooper's statement.

If you're experiencing difficulties paying your mortgage due to a cyberattack, be sure to stay informed through official channels.

Recurring automatic payments may still work, as LoanDepot noted, so it's essential to check your account status regularly.