Recently Mortgage and Loan company LoanDepot disclosed that it had suffered a massive data breach in which the names, dates of birth, email and postal addresses, financial account numbers, phone numbers and, most disturbing, Social Security numbers of 16.6 million of its customers were stolen in a ransomware attack.  This news was followed within a couple of days by news that two lawsuits seeking class action status have been filed on behalf of victims of the data breach alleging a failure of LoanDepot to take proper steps to protect their sensitive personal information.  The particular information compromised in the data breach can easily be used for purposes of identity theft.

This data breach is just the latest in a disturbing trend of major financial services companies such as mortgage lender Mr. Cooper and home insurance company Fidelity National Financial failing to protect the sensitive financial information of their customers.

TIPS

So what does this mean to you and me whether we are customers of LoanDepot or not?

More than anything, these ransomware attacks and data breaches are another reminder that regardless of how careful we may be protecting our personal information, we are only as secure as the companies with which we do business with the worst security.  About the only way to reduce the risk is to limit the personal information we provide to these companies.  Don’t leave your credit card on file with any company and don’t provide your Social Security number to every company that asks for it unless it is truly required.  Your doctor does not need your Social Security number, but they often ask for it.

It also is important to freeze your credit reports to help protect you when data breaches do occur.  Freezing your credit is something everyone should do.  It is free and easy to do.  In addition, it protects you from someone using your identity to obtain loans or make large purchases even if they have your Social Security number.  If you have not already done so, put a credit freeze on your credit reports at all of the major credit reporting agencies.  Here are links to each of them with instructions about how to get a credit freeze:

Also, if you are in the mood to get scared you can go to the free website haveibeenpawned where you can find out what data breaches have affected you personally.  https://haveibeenpwned.com/

As for the class actions against LoanDepot I am sure among Scamicide readers we have customers of LoanDepot so I will keep you informed as to progress of these class action lawsuits.

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#loandepotdatabreach