Priya Patel
TLDR:
Key Takeaways:
- A series of data breaches in the financial services sector has highlighted the vulnerability of the mortgage industry to cyber attacks.
- Mortgage lenders need to take steps to protect their data, including improving third-party governance, combating AI-driven phishing attacks, and managing in-house systems effectively.
Steps mortgage lenders should take to protect their data
A series of data breaches hit the financial services sector at the end of 2023 and into the new year, exposing the vulnerability of the mortgage industry to cyber attacks. These breaches have put mortgage stakeholders on alert regarding the protection of their infrastructure.
Attacks have been carried out using third-party vendor vulnerabilities and other means, such as directly attacking companies through phishing with spoofing emails. Bad actors have become more sophisticated, using artificial intelligence to mimic communications and make it harder to detect fakes.
These incidents have not only harmed the reputation of mortgage companies but also caused financial damage. Companies like Loandepot and Mr. Cooper have reported spending millions in expenses as a result of cyber attacks.
To protect their data and infrastructure, mortgage companies should consider the following steps:
1. Third-party governance:
Mortgage companies should tighten security protocols around third parties connected to their networks, actively managing their access and ensuring timely updates and patches to prevent breaches.
2. AI-driven phishing attacks:
Combatting phishing attacks, now driven by artificial intelligence, is crucial. Turning off smart addresses and JavaScript in emails can help identify phishing attempts more effectively.
3. In-house systems management:
Having strong policies for managing data systems and conducting penetration testing can help prevent or quickly respond to cyber attacks. Disaster recovery processes and playbooks should be in place to mitigate the impact of a hack.
4. Watch the advertising:
It is advised to refrain from publicly disclosing vendor partnerships, as this information can be used by hackers for targeted attacks. Secure methods of sharing customer information post-engagement are recommended to prevent vulnerabilities.
By implementing these measures and staying vigilant, mortgage lenders can enhance their cybersecurity defenses and safeguard their data from potential cyber threats.
