Cost Of Ransomware Attack: $12 To $17M

The California-based loanDepot told regulators Tuesday that the cybersecurity incident impacting 16.9 million individuals will cost the company between $12 to $17 million. 

"The cybersecurity incident will have a material impact on its first quarter 2024 results but does not expect the incident to have a material impact on full year 2024 results," loanDepot wrote in its recent filing. 

The company, which offered free credit monitoring services to all of its customers, has been named in several lawsuits regarding the incident. 

"While we cannot presently quantify the full scope of expenses and other related impacts associated with this cybersecurity incident, including costs associated with any related current or future litigation or regulatory inquiries or investigations, the Company currently does not expect that the cybersecurity incident will have a material impact on its overall financial condition or on its ongoing results of operations," the company wrote. 

Ransomware gang AlphV/BlackCat claimed it was behind the cyberattack.

loanDepot disclosed on January 22 that over 16 million individuals had their personal information compromised in a ransomware attack. loanDepot indicated that the earliest event occurred on Jan. 4, 2024.

This revelation came two days after initially classifying the incident as a "cyber incident" on January 6th.

Several notable mortgage industry companies have faced cyberattacks in recent months, underscoring the growing cybersecurity challenges in the financial sector. The cyberattack of loanDepot follows recent breaches at First American, Fidelity National Financial, and Mr. Cooper Group.