Loan Depot Data Breach: Did They Get Hacked?
Loan Depot, a leading mortgage lender, faced a significant data breach in 2020. Over 300,000 customers' sensitive information was compromised, including social security numbers, addresses, and loan details.
The breach was discovered on January 29, 2020, and immediately reported to the relevant authorities. Loan Depot took swift action to contain the breach and protect its customers' data.
The data breach was attributed to a third-party vendor that had access to Loan Depot's systems. This highlights the importance of carefully managing third-party access to sensitive data.
Loan Depot's response to the breach has been praised by experts, who note that the company took steps to notify affected customers and offer them free credit monitoring services.
For more insights, see: Bank of America Data Breach Affects 57 000 Customers
LoanDepot Data Breach
Almost 17 million customers had their Social Security numbers compromised during a data breach at LoanDepot.
The attack took place from January 3 to January 5, 2024, and may have exposed other personal identifiable information such as names, addresses, financial account numbers, phone numbers, and birth information.
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LoanDepot initially reported 16.6 million customers had their personal identifiable information compromised, but wouldn't confirm if Social Security numbers were exposed.
The company expects to record $12 to $17 million in expenses related to the cybersecurity incident, net of expected insurance recovery.
Alphv, a notorious ransomware gang, took responsibility for the hack and claims LoanDepot initially offered $6 million for the stolen data, but then asked for more time to secure a bigger ransomware payment.
LoanDepot allegedly "disappeared" after negotiations broke down, leading Alphv to announce it's selling the customer information on the dark web.
As a result, LoanDepot is facing at least a dozen class action suits, with one borrower accusing the company of failing to prevent the data breach and not investing adequately in privacy and security protections.
See what others are reading: Is Loan Depot a Legitimate Company
Breach Details
Loandepot customers' sensitive information was compromised in a data breach that took place from January 3 to 5, 2024.
The breach exposed Social Security numbers, names, addresses, financial account numbers, phone numbers, and date of birth information of customers.
Loandepot initially reported that 16.6 million customers had their personal identifiable information compromised, but later revealed that almost 17 million customers had their Social Security numbers exposed.
The company expects to record approximately $12 to $17 million in expenses related to the cybersecurity incident, net of expected insurance recovery.
The ransomware gang Alphv, or Blackcat, took responsibility for the hack and claimed Loandepot initially offered $6 million for the stolen data, but then asked for more time to secure a bigger ransomware payment.
The breach has resulted in at least a dozen class-action lawsuits against Loandepot, with one suit accusing the company of "willfully failing" to prevent the data breach.
Loandepot is currently notifying 16.9 million individuals whose sensitive personal information was impacted by the cyber incident, and will offer credit monitoring and identity protection services at no cost to them.
The company expects to add approximately $12 million to $17 million in expenses to its first-quarter earnings as a result of the breach.
Frequently Asked Questions
Is there a class action lawsuit against loanDepot?
Yes, there is a class action lawsuit against loanDepot.com, LLC alleging unauthorized bank account debits. Consumers may be affected if they had a loan with loanDepot and had funds debited from their accounts without proper authorization.
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