The Critical Need for Cybersecurity Measures in the Mortgage Industry
Locked Cabinets No More
In light of recent cyberattacks targeting mortgage companies, it is evident that the days of locking files in cabinets are long gone. The increasing frequency and sophistication of these attacks pose significant challenges for lenders, employees, and impacted customers. We aim to shed light on a few notable incidents and emphasize the need for robust cybersecurity measures in the mortgage industry.
A top U.S. mortgage lender, loanDepot, recently fell victim to a cyberattack, with the earliest event reported on January 4, 2023. This is not the first attack targeted at loanDepot, as a phishing attack occurred in early August 2022.
Cyberattacks on First American and Fidelity National Financial:
In December 2023, First American, a title insurance company, experienced a cyberattack that impacted its services, including title insurance, escrow, mortgage transactions, and real estate technology. Similarly, in November 2023, Fidelity National Financial, a leading provider of title insurance and settlement services, suffered a ransomware attack orchestrated by the ALPHV/BlackCat gang, resulting in disruption to its services for a few days. A class-action lawsuit has been filed against a subservicer, LoanCare, alleging negligence regarding customer data protection. Additionally, in October 2023, Mr. Cooper, another top mortgage company, suffered a data breach that exposed the information of nearly 15 million current and former clients.
Importance of Cybersecurity:
Given the increasing threats, it is crucial for all mortgage companies, regardless of their size, to have stringent cybersecurity policies and systems in place. Neglecting these risks and failing to take proactive measures to safeguard customer data can lead to potential legal repercussions. Small and mid-size lenders should not believe they are immune to attacks. Cyber attackers often target the most vulnerable entities, making it imperative for all companies to take cybersecurity seriously.
Taking Action in 2024:
If your organization lacks confidence in its cybersecurity measures, it is vital to treat it as a top priority for 2024. Conduct a thorough evaluation of your current systems, processes, procedures, and training to ensure protection against cyberattacks. It may be beneficial to seek assistance from reputable and trusted cybersecurity providers, which can be found on Mortgage Advisor Tools.
In an era where cyberattacks pose a grave threat to the mortgage industry, it is paramount for companies to prioritize cybersecurity measures. By implementing robust systems and staying proactive, organizations can mitigate the risks associated with cyberattacks and protect the privacy and security of their employees and customers. Start 2024 by taking action to safeguard your organization from becoming the next headline in the news.
Written by: Blake Boyer