LoanDepot reports nearly $27 million in costs from ransomware attack

LoanDepot, a U.S.-based mortgage lender specializing in providing home loans and refinancing services, disclosed on Tuesday that the financial impact of a recent ransomware attack has reached approximately $27 million.

 

The cyberattack, which emerged in early January 2024, led to the encryption of sensitive data, prompting the company to take several systems offline. The breach compromised the personal information of over 16 million individuals, including names, addresses, email addresses, phone numbers, dates of birth, Social Security numbers, and financial account details.

 

LoanDepot’s financial report for the quarter ending June 30, 2024, revealed $26.9 million in expenses related to the incident. These costs encompass investigation and remediation efforts, customer notifications, identity protection, professional fees, litigation settlements, and commission guarantees.

 

Additionally, LoanDepot recorded a $25 million accrual for class action litigation associated with the breach. The ransomware group Alphv/BlackCat, targeted by law enforcement shortly before the attack, claimed responsibility and reportedly attempted to sell the stolen data.

 

In related news, Keytronic, an electronics manufacturing services firm, disclosed last week that its recent ransomware attack resulted in expenses and lost revenue exceeding $17 million.