Mortgage Company Cyber Attack: How to Protect Yourself

If you are aware of the happenings in the mortgage industry, you’ll know about mortgage company cyber attacks in recent times. Unfortunately, in today’s world, cyber-attacks happen often and are highly complex. The malicious ransomware attacks have affected the healthcare, financial services, education, and manufacturing industries. And, the real estate industry too is no longer immune to these vicious threats. So, what do you do to protect yourself and your business against such cyber incidents? Let’s find out, here.

Which mortgage company cyber attack was in the news?

LoanDepot, a major non-bank mortgage lender in the United States faced a significant ransomware attack in late October, impacting its loan processing. In November, a cyberattack on Fidelity National Financial caused disruptions to its services, including title insurance and mortgage transactions. And, in late December, First American Financial experienced an attack resulting in theft and encryption of data.

In recent times, several other mortgage servicers have reported cyberattacks where hackers stole sensitive information, affecting millions of Americans.

The extent of information stolen is yet to be confirmed, but mortgage companies typically collect personal data such as social security numbers which could be compromised.

Nationstar Mortgage LLC, also known as Mr. Cooper, experienced a cyberattack where hackers obtained personal details, including names, addresses, SSNs, and dates of birth, affecting around 15 million individuals, including loan applicants.

LoanCare, a sub-servicing company for smaller mortgage firms, disclosed a data breach where sensitive personal information such as names, addresses, SSNs, and loan numbers were said to be compromised.

Why are mortgage companies easy targets for a cyber attack?

Mortgage companies are attractive targets for hackers because they gather highly sensitive customer information. Hackers can access details such as tax returns, banking information, salary, and even the type of car someone drives. This kind of personal data makes it easier for them to commit fraud and target victims more effectively.

To stay safe, victims should regularly monitor banks or credit card companies. Also credit reports and use top-notch antivirus software for protection.

When the company notices unauthorized activity, it must quickly act to contain and address the security breach issue. This could involve launching an investigation with help from cybersecurity experts and notifying relevant regulators and law enforcement agencies.

How can a mortgage company protect itself from a cyber attack?

Of course, when a company is under a malicious cyber attack, it’s difficult to contain the threat. Before they understand the extent of damage, it’s too late. However, mortgage companies can implement several measures to protect their sensitive data and operations. These steps to minimize the risk of cyber-attacks and damage can come in handy.

Install robust firewalls and antivirus software to detect and prevent unauthorized third-party activity (including access) and malware infections.
Ensure regular software updates and patch management to address vulnerabilities.
Conduct regular employee training sessions to educate them about cybersecurity best practices. This includes identifying phishing emails and suspicious links.
Enforce strong password policies, including regular password changes and the use of complex passwords.
Always encrypt sensitive customer data to protect it from unauthorized access.
Implement access controls and restrict permissions to sensitive information only to authorized personnel.
Develop and regularly update an incident response plan to mitigate the impact of a cyber attack and ensure a swift and coordinated response.
Conduct regular security audits and assessments to identify and address any vulnerabilities or weaknesses in the company systems and processes.

What should you do if your mortgage company experiences a cyber attack?

If your mortgage provider experiences a cyberattack, it’s crucial to safeguard your personal and financial information. Here’s what you can do:

Stay informed. Keep an eye on your lender’s website and check your email for updates about the security breach. Your mortgage provider will likely provide information about the cyber incident and its response efforts.
Monitor your accounts regularly. Don’t forget to review your bank account statements and credit reports for any suspicious activity. Always, report unauthorized transactions to your bank or credit card company immediately.
Consider identity theft protection services. They can help monitor your personal information for any signs of misuse, such as unauthorized credit card applications or social media activity. Your mortgage company may offer complimentary coverage if your data is believed to be compromised.

How do mortgage companies deal with a cyber attack?

Mortgage companies typically deal with a cyber attack by following a predefined incident response plan. This helps them minimize the impact of cyber-attacks and protect their operations and customers’ sensitive information.

Initially, they detect unusual activity via monitoring systems or reports from employees. Once detected, they swiftly file a complaint to the Securities and Exchange Commission. And then, try to contain the attack, isolating affected systems to curb its spread. Following this, an incident response team, comprising IT specialists, legal advisors, and management, investigates the attack, assesses its impact, and strategizes mitigation. Communication ensues with internal stakeholders to inform and guide necessary actions. If sensitive data is compromised, legal obligations may necessitate notifying affected individuals and regulatory bodies. Subsequently, efforts focus on recovery, including data restoration and bolstering security measures to avert future attacks. Finally, a comprehensive review is conducted to enhance security protocols and prevent similar incidents.

Mortgage company cyber attack: Key takeaway

Recent cyber attacks on major mortgage industry firms, including Mr. Cooper Group, Fidelity National Financial, First American Financial, and one of the largest retail mortgage lenders loanDepot, follow a common trend seen across various sectors. Despite no known direct links between the attacks, the extent of incidents and damages were widespread, compromising sensitive data, causing delays in loan closings, and preventing customer loan payments.

Like other sectors, financial services organizations also face similar malicious activity regardless of size or resources. While government agencies may aid the mortgage industry, these companies and technology vendors must take measures to secure their products. The last thing they’d want is their data compromised.

Written by Ramona Sinha. March 24, 2024

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.