Mr. Cooper reports data breach in recent cyberattack

The mortgage and loan company Mr. Cooper, servicing over four million customers, recently confirmed a significant data breach following a cyberattack. The company is still investigating the breach’s extent, leaving the specific details of compromised customer data unclear.

Immediate measures and customer impact

Mr. Cooper took swift action upon detecting the cyberattack on Oct. 31 by shutting down its systems, a move aimed at limiting the attack’s impact. However, this led to an ongoing service outage, now in its second week, leaving numerous customers unable to access their accounts. The company plans to send out notices to those affected in the upcoming weeks.

In their recent public statement, Mr. Cooper reassured customers that banking information related to mortgage payments, hosted with a third-party provider, was not affected by the incident. This clarification is a crucial aspect of Mr. Cooper’s response, prioritizing customer reassurance in a challenging situation.

Financial implications and company’s response

Mr. Cooper’s filing with the U.S. Securities and Exchange Commission sheds light on the financial implications of the attack. The company anticipates up to $10 million in additional vendor costs during its fiscal fourth quarter. However, they expect no significant long-term impact on their business operations.

TechCrunch’s efforts to obtain more detailed information from Mr. Cooper led to a response from a third-party PR firm. The firm reiterated the company’s statement but did not provide specifics or confirm any communication with the hackers. Additionally, Mr. Cooper declined TechCrunch’s request for an interview with Chief Information Security Officer Scot Miller.

As Mr. Cooper navigates through the aftermath of this cybersecurity incident, the focus is on understanding the breach’s full scope and enhancing measures to protect customer data. The incident highlights the ever-present need for robust cybersecurity in the mortgage industry, a sector increasingly targeted by digital threats.

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