Mortgage lender LoanDepot reported on Tuesday that the costs associated with the recent ransomware attack have reached nearly $27 million.
The attack came to light in early January 2024, when the company took some systems offline in response to a cyberattack that involved the encryption of data.
A few weeks later, LoanDepot informed authorities that the details of more than 16 million individuals may have been compromised.
The data breach impacted names, addresses, email addresses, phone numbers, dates of birth, Social Security numbers, and financial account numbers.
LoanDepot’s latest financial report reveals that the company incurred $26.9 million in expenses related to the incident.
The amount includes “costs to investigate and remediate the cybersecurity incident, the costs of customer notifications and identity protection, professional fees including legal expenses, litigation settlement costs, and commission guarantees”.
“During the quarter ended June 30, 2024, the Company recorded an accrual of $25 million in connection with class action litigation related to the Cybersecurity Incident,” LoanDepot added.
The Alphv/BlackCat ransomware group, whose operations were targeted by law enforcement just before the LoanDepot data breach came to light, took credit for the attack. The cybercriminals claimed they had been in the process of selling the data stolen from the lender.
Electronics manufacturing services firm Keytronic revealed last week that the recent ransomware attack resulted in expenses and lost revenue totaling more than $17 million.
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