Ransomware Attack Cost LoanDepot $27 Million

Ransomware Attack Cost LoanDepot $27 Million

August 7, 2024 at 06:30AM

Mortgage lender LoanDepot reported expenses of nearly $27 million due to a recent ransomware attack, which compromised the data of over 16 million individuals. Costs included investigation, customer notifications, legal fees, and litigation settlement. The ransomware group claimed responsibility and planned to sell the stolen data. Keytronic also suffered losses exceeding $17 million in a similar attack.

Key takeaways from the meeting notes are:

1. LoanDepot incurred nearly $27 million in costs due to a recent ransomware attack. The attack compromised the details of more than 16 million individuals, including sensitive information such as names, addresses, Social Security numbers, and financial account numbers.

2. The expenses related to the incident include costs for investigation and remediation, customer notifications and identity protection, legal expenses, litigation settlement costs, and commission guarantees.

3. Additionally, LoanDepot recorded an accrual of $25 million for class action litigation related to the cybersecurity incident.

4. The cybercriminal group Alphv/BlackCat ransomware claimed responsibility for the attack and announced plans to sell the stolen data.

5. Another company, Keytronic, reported expenses and lost revenue totaling more than $17 million due to a recent ransomware attack.

These key points provide a clear summary of the impact and costs associated with the recent ransomware attacks on LoanDepot and Keytronic.

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