The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
After you’ve been notified of a data breach, you should contact your bank and the three major credit bureaus as soon as possible.
When a data breach occurs, you should monitor all of your accounts for suspicious activity. Creating alerts for your banking accounts can help you react to suspicious transactions. A similar strategy is advised for your credit report; in certain cases, companies will have to provide credit monitoring services to their customers for up to 12 months.
Data breaches can lead to negative situations, such as identity theft and credit card fraud. Below, we’ll discuss what to do after a data breach occurs and explore options for reliable credit monitoring services.
Key takeaways:
A data breach occurs when cybercriminals illegally gain access to sensitive information.
In certain cases, companies will be ordered to provide credit monitoring services to their customers for up to 12 months.
The Equifax® data breach of 2017 compromised 148 million Americans and 15 million British citizens.
Table of contents:
What is a data breach?
A data breach occurs when cybercriminals and bad actors illegally access sensitive data. A data breach can happen to specific individuals and large organizations—such as the 2017 Equifax data breach, which impacted nearly 150 million Americans and 15 million British citizens.
If an organization is held accountable for a data breach by a court of law, compensation may be issued to victims. For example, the Equifax breach settlement was finalized in January 2022 and resulted in free credit monitoring services and up to $425 million of support to impacted individuals.
How do you check if your personal information was exposed?
The Data Breach Notification Act offers guidelines and regulations in the event of a data breach. Section 2 of this act states that businesses and federal agencies must tell affected individuals that their data has been leaked “without unreasonable delay.”
These specific guidelines are relevant after a data breach occurs. Here are several actionable steps if you want to take proactive measures to combat a data breach:
Intrusion detection system (IDS): This technology can monitor a network and determine if suspicious or malicious activity is underway.
Data leak checker websites: Websites like Have I Been Pwnd will help you check if one of your emails was part of a data breach.
Review your emails: If your spam and junk email boxes have an unusual amount of spam, your email could’ve been compromised.
What should you do after a data breach?
After you’ve received a notice that your data was compromised, it’s natural to feel overwhelmed or upset by this violation of your privacy. Nevertheless, taking action and making adjustments is the best way to minimize or prevent the worst outcomes.
Change your passwords
If you were part of a data breach, there’s a high likelihood that cybercriminals might possess your current login information. Changing your passwords can prevent bad actors from signing into your accounts.
Ideally, it’s best to use a complex password comprising upper and lowercase letters, special characters and numbers. The less this new password resembles your old one, the better. Furthermore, changing your password every few months is an excellent preventive measure.
Activate two-factor authentication (2FA)
Two-factor authentication (2FA) is an additional login step where users have to finish signing in on a trusted device, usually a smartphone. 2FA reduces the likelihood of a bad actor illegally accessing one of your accounts as the additional login measure (your phone) is on your person.
Look into credit monitoring services
For those wondering what credit monitoring is, the term refers to any service that watches your credit reports and alerts you about suspicious activity that doesn’t match your usual financial habits.
Credit monitoring services look for everything from fluctuations in your credit score to new accounts that have been opened in your name. Lex OnTrack is a monitoring service that tracks your credit history and helps protect your identity from fraud.
Freeze your credit with the three credit bureaus
Learning how to freeze your credit can help you stop cybercriminals from taking unauthorized actions with your credit. To fully freeze your credit, you’ll at least want to contact Equifax®, Experian® and TransUnion®—the three major credit bureaus.
Contact your bank
Speaking with your bank after you’ve been notified of a data breach is an effective way to protect your finances. You’ll have an opportunity to notify your financial institution of this unfortunate event, and you’ll also be able to review recent account activity.
If recent purchases were made on your account that don’t align with your habits, they could be tied to unlawful activity.
What states have data breach laws?
Every state in America has cybersecurity laws that protect civilians, organizations and federal agencies in the event of a data breach.The Data Breach Notification Act generally applies to all 50 states alongside territories and districts.
At the time of writing, California, Colorado, Connecticut, Utah and Virginia have unique data privacy laws that differ somewhat from their contemporaries. For instance, the California Consumer Privacy Act (CCPA) gives Californians the right to demand all information that a company and its third-party partners have on them.
3 reasons data breaches happen
Data breaches are incredibly alarming, and it’s tempting to search for an easy explanation as to why they happen. Though only a small number of them are successful, cyberattacks are quite common.
A study by the Clack School found that some computers may be attacked, on average, approximately 2,200 times each day. Some factors that raise the odds of a cyberattack succeeding are outlined below.
1. Malware attacks
Malware (or malicious software) can compromise security if someone downloads it onto their device. For example, a key logger is a type of malware that records every keystroke a user inputs. Such software could help cybercriminals steal admin credentials from an organization, then log in and access sensitive data.
2. Internal data leak
“What is a data leak?” is a fair question, as this term sounds similar to a data breach. However, a data leak occurs when an internal source releases private information to the general public. If someone working at an organization gives out confidential login details, a cybercriminal could capitalize on that and initiate a data breach.
3. Outdated software
Software updates bolster a network’s security and make it harder for hackers to slip past defenses. Repeated cyberattacks that are launched against systems with outdated software are more likely to be successful.
Monitor your credit with Lexington Law Firm
The sheer number of cyberattacks that occur each day can be alarming, but there are many ways to protect yourself from digital disturbances. A credit monitoring service is an excellent tool that works in the background and catches seemingly minute details.
Explore Lexington Law’s services, which include credit monitoring as well as assistance with challenging errors on credit reports, if any are found.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Moriah Beaver
Associate Attorney
Moriah is an attorney practicing in consumer advocacy at Lexington Law.
Before joining Lexington, she represented plaintiffs in personal injury litigation, dealing with claims arising from car accidents, slip and falls, and dog bites. Moriah studied English at Brigham Young University for her undergraduate degree and went on to graduate from Brigham Young University’s J. Reuben Clark Law School. She is from Hau’ula, Hawaii, but has been a resident of Utah for over 10 years now.
Inside: Discover the secrets to earning $200k a year. Learn to choose industries, negotiate salaries, and balance life with high-income careers.
Achieving a $200,000 annual income is a financial milestone that many aspire to reach, but not everyone knows how to realistically attain.
Whether you’re starting from scratch or looking to elevate your current earnings, the blueprint to a $200K income is within your grasp. It all begins with a strategic approach that leverages both a steady job and an entrepreneurial spirit.
Achieving a $200k salary is not just about luxury—it’s about stability and security. With rising living costs, including student loans, mortgages, and everyday expenses, earning a high income is increasingly vital to maintaining a comfortable lifestyle.
By combining the stability of a well-paying career with the dynamism of a side hustle, you can fast-track your way to this lofty goal.
In this comprehensive guide, we dive deep into a method that suits everyone to make $200000 this year.
You’ll learn how to harness your passions, manage your time and expenses, and create a foolproof plan that caters to your strengths and circumstances.
How to Make 200k a Year
Achieving this level of annual income is a significant financial goal that necessitates a well-devised strategy combining steady employment with entrepreneurial endeavors.
This is possible for anyone to do. You have been making 10k a month for a while now and want to make the leap.
You just must be steadfast in pursuing your goals.
#1 – Identify high-income skills and industries
The first step toward making $200k a year is to recognize the skills and industries that command such salaries. Technology and finance are prime examples where hard work and expertise can lead to impressive earnings right out of college.
Specialized skills in software development, cybersecurity, data analysis, and AI are highly sought after. Additionally, roles in investment banking, private equity, and hedge funds are lucrative but come with intense competition and long hours.
Identifying these prospects involves understanding market needs, so be prepared to continually adapt to the latest industry trends. I cannot stress how important these high income skills are for your income.
Top Skills: Software Development, Cybersecurity, Data Analysis, Artificial Intelligence, Financial Analysis
Top Industries: Tech, Finance, Consulting, Healthcare, Legal
#2 – Degrees and Courses That Could Lead to 200K Jobs
If you’re seeking a high-paying career, focusing your education in specific areas is crucial. Advanced degrees, such as a doctoral degree in medicine, law, business administration (MBA), or specialized engineering can pave the way to high-paying roles.
For those with a penchant for academia, pursuing specialized courses that lead to becoming a medical lawyer, dentist, neurologist, psychiatrist, or gynecologist can be extremely rewarding. However, keep in mind that these paths generally require significant time and financial investment in education before reaping the financial rewards.
However, there are plenty of low-stress jobs that pay well without a degree.
Recommended Degrees: Medicine, Law, Engineering, Business Administration (MBA)
Embarking on entrepreneurship is a thrilling yet challenging path to reach unlimited annual income.
To start a business that prospers, it’s essential to identify a market need and create a clear business plan. Whether you’re selling a physical product, offering a service, or thriving in the digital market through online marketing, e-commerce, or app development, dedication, and strategic growth are paramount.
Investing both time and capital wisely, and adapting to market feedback can help you scale your business to meet and exceed your financial goals.
Investment Tip: Consider start-up costs carefully, and plan for lean operation.
Growth Strategy: Focus on customer satisfaction, scaling smartly, and marketing effectively.
#4 – Advance in your current career
Climbing the corporate ladder within your existing professional environment is a viable route to a higher salary.
To do this, focus on excelling in your current role, continuously improve your skills, and demonstrate the value you add to the company. Seek out leadership roles, ask for challenging projects, and take on responsibilities that align with the company’s revenue-generating activities.
Remember, promotions often come with significant pay raises, and it’s essential to communicate your career goals with your employer to align your trajectory with the available opportunities. Just watch the number of working hours you put in.
Key Strategies: Exceed performance expectations, take initiative, and pursue leadership roles.
Professional Development: Continued education, certifications, and networking are critical for advancement.
#5 – Invest in real estate for passive income
Real estate investment remains a cornerstone strategy for building wealth.
Focusing on location is key; properties in high-demand markets can yield substantial returns through rental income and appreciation. Paying with cash rather than financing can lead to better deals and avoid interest payments, as debt can eat into profits.
Moreover, platforms like Fundrise allow investors to start with as little as $10, which could be a smart move if you’re seeking a hands-off investment with a diverse real estate portfolio.
Investment Insight: Cash purchases may provide better deals, reducing financial risk.
Real Estate Tip: Choose high-demand locations for better rental income and property appreciation.
#6 – Maximize income through stocks or other investments
Investing in the stock market through individual stocks, mutual funds, or exchange-traded funds (ETFs) is another way to potentially earn $200k a year. Dividends from some of these investments can also serve as a consistent income stream.
Consider focusing on industries poised for growth or stable dividend-paying stocks, as these can offer a balance between growth potential and income reliability.
Additionally, alternative investments such as cryptocurrencies or option contracts can offer high returns, but come with high volatility. Always conduct thorough research or consult with a financial advisor before making significant investment decisions.
Learn how to invest in stocks for beginners.
Investment Strategy: Diversify your portfolio, focus on growth sectors, and consider enhancing your investment knowledge.
Cautionary Note: Be aware of market risks and do not invest more than you can afford to lose.
#7 – Gain Relevant Experience in High-Demand Fields
To command a $200k paycheck, it’s essential to gain experience in fields where the demand for your skills exceeds the supply.
Industries such as technology, healthcare, and specialized consulting are in constant need of experienced professionals. Work on projects that showcase your expertise and build a robust professional portfolio.
You can also consider a side hustle like freelancing or consulting to gain a broad range of experiences that can make you an attractive candidate for high-level positions.
Experience Building: Take on varied projects, freelance, or consult in your niche.
Portfolio Enhancement: Document your successes and gather testimonials or recommendations.
#8 – Continuous Learning and Adaptability to Stay Ahead
In the dynamic job market, staying complacent can mean getting left behind. Cultivating a habit of lifelong learning and adaptability is crucial. Did you know you are an appreciating asset?
This may involve updating your skill set to keep pace with technological advancements, attaining new certifications, or attending industry conferences and workshops. Remember that cross-skills, like project management or business analytics, are also valuable and can complement your primary expertise.
Embrace change and be willing to pivot when necessary to maintain your competitive edge and earning potential.
Professional Development: Seek out further education and certifications.
Adaptability: Stay open to industry shifts and be ready to pivot your skills accordingly.
Careers That Make 200K a Year is Common
In certain careers, a $200K annual salary is not an exception but rather a common expectation.
Positions in healthcare such as surgeons, specialists, and anesthesiologists often offer salaries exceeding this amount. Moreover, top-level executives, experienced lawyers, and investment bankers are typically in the higher income bracket due to the high stakes and demands of their industry. In tech, senior software engineers and IT executives with strong track records in hot markets like Silicon Valley can command these salaries, too.
Success in these careers requires a combination of advanced education, considerable experience, and sometimes, the right location.
Within these industries, focus on roles that are crucial to core operations, innovation, or revenue generation.
For tech, this might involve AI, machine learning, and cybersecurity. In finance, investment strategists and financial advisors are in demand. In healthcare, specialized practitioners command higher salaries whereas, in the legal field, corporate lawyers and litigators typically earn more.
Just to note… taxes will take a substantial amount out of your paycheck. So, you want to aim for $200k as net income.
Factor #2 – Climbing the Ladder: From Mid-Level to Top-Tier Positions
Transitioning from a mid-level position to top-tier status demands a proactive career strategy. Aim for roles that impact the company’s bottom line, such as project management or strategic planning, which often lead to executive positions.
Make sure to seek mentors who can offer guidance, and build a reputation for reliability and innovation. Networking within your industry can uncover hidden opportunities and give you a competitive edge.
Strategic Positioning: Focus on profit-impacting roles and responsibilities.
Career Growth: Network, seek mentorship, and demonstrate leadership capabilities.
Always aim to bring value to your organization, as this will be your leverage when seeking promotions and negotiating salary increments.
Factor #3 – Negotiation Tactics for a High Paying Salary
Securing a salary of $200k often hinges on your ability to negotiate effectively.
Begin the negotiation process by researching the standard salary for your position in your industry and region. Articulate your value by enumerating your accomplishments, experiences, and the results you can deliver.
Prioritize non-salary benefits that may be equivalent to a higher income, such as bonuses, commission, stock options, or flexible work arrangements. When discussing figures, aim higher to give room for negotiation.
Research: Know industry salary benchmarks.
Value Proposition: Clearly communicate your potential contribution.
Remember, negotiation is a dialogue, so listen carefully, be respectful, and maintain a professional demeanor throughout the process.
Factor #4 – Building Professional Relationships That Open Opportunities
Fostering robust professional relationships is key to unlocking high-paying roles, as connections can lead to opportunities that aren’t publicly advertised.
Networking is an art. It goes beyond just asking the question, “What do you do for a living?“
Actively engage with peers at industry events, be genuinely interested in others, and offer help before you ask for it. Maintain a positive online presence on platforms like LinkedIn, where you can connect with like-minded professionals and hiring managers.
Networking: Engage in industry events and platforms like LinkedIn.
Relationship Management: Nurture connections and seek meaningful interactions.
Don’t forget to nurture existing relationships – a recommendation from a trusted colleague can provide a significant edge in landing a coveted position.
Factor #5 – Cities and Regions with the Best High-Paying Job Markets
If you’re eyeing a lucrative salary, it’s strategic to consider the geographic landscape of high-paying jobs.
Major economic hubs like New York City, San Francisco, and Boston have dense concentrations of Fortune 500 companies and start-ups that offer competitive salaries, especially in finance and tech. However, these cities come with higher costs of living.
Comparatively, cities like Austin, Seattle, and Denver have burgeoning tech and business sectors with a more balanced cost of living.
Economic Hubs: New York City, San Francisco, Boston.
Balance Seekers: Austin, Seattle, Denver.
Consider looking for cities that have a vibrant job market in your industry, but a reasonable cost of living to maximize your income-to-expense ratio.
Factor #6 – Remote Work: A Gateway Being Global
The rise of remote work has opened a world of possibilities for professionals seeking higher salaries. You can work in a low cost of living country and still get a good income and save the rest.
With remote positions, you’re not limited by location and can work for companies with higher pay scales in stronger economies, practicing geographic arbitrage to your advantage. Sectors like tech, marketing, and design are ripe with remote opportunities that pay well.
Geographic Arbitrage: Tap into stronger economies and work remotely.
Global Accessibility: Utilize online platforms to access high-income roles worldwide.
To capitalize on this, enhance your digital presence, showcase your skills online, and engage with global job platforms. Also, consider the time zones and cultural work patterns of employers to ensure a smooth collaboration.
FAQs About Securing a 200K Job
A salary of $200k is relatively rare, with only a small percentage of U.S. households earning at this level.
According to recent statistics, 11.9% of U.S. households had an annual income over $200,000.1
However, this figure can vary significantly by industry, location, and level of experience.
This is 100% possible with the rise of technology and the internet.
To do this, you must focus on industries that value skills and experience over formal education.
Professions like real estate brokering, high-level sales, business entrepreneurship, or becoming a skilled tradesperson. You just need strong persistence.
The likely answer is typically one needs a grad degree or extensive experience in high-paying fields like medicine, law, engineering, or business.
However, specialized certifications, proven expertise, exceptional skills, or entrepreneurship can also be your ticket to this income level without traditional qualifications.
What Jobs Pay 200k a Year Interest You?
Now that you’re equipped with knowledge about reaching a $200k salary, consider which roles resonate with your skills and passions.
Maybe you’re intrigued by the challenge of a tech startup, or the idea of saving lives as a healthcare specialist is what drives you. Perhaps the strategic element of financial planning appeals to your analytical side, or the autonomy of forging your path as an entrepreneur is a calling.
Remember, selecting a profession that not only offers financial rewards but also aligns with your interests and values is crucial for long-term satisfaction and success. High tech degrees are highly sought after right now.
The great part about making this amount of money is you can increase your savings rate, but that doesn’t mean you should leave beyond your means.
There are plenty of avenues that will have you making over six figures quickly.
Source
Statistic. “Percentage distribution of household income in the United States in 2022.” https://www.statista.com/statistics/203183/percentage-distribution-of-household-income-in-the-us/. Accessed February 28, 2024.
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Editor in Chief Sarah Wheeler sat down with Dan Stewart, founder and CEO of Happy Grasshopper, to talk about the company’s tech strategy in creating content that resonates with consumers. Storytelling is key to the company’s success and Stewart’s own story explains how he stays cool in any market cycle. Turns out being stranded at sea in shark-infested waters puts everything else in perspective.
Sarah Wheeler: What differentiates your technology?
Dan Stewart: When you think of the technical landscape today, specifically for CRM, at the very core, everything does almost exactly the same thing: It segments contacts and it sends messaging. That’s not a significant technical challenge. The challenge is creating and delivering messaging that produces the desired result for the person sending the message. And that’s what we focus on.
Today we’re nurturing about 37 million contacts on behalf of our members. And we’ve built a reporting engine we affectionately call queen bee reporting. We leverage AI to crunch the numbers, because the datasets get so large so quickly. We leverage AI to make sure that our members are sending content that’s most likely to be well-received by the target audience and to produce the conversations that they need to have.
SW: How do you know what the “right” content is?
DS: Looking in the data, it really highlights some key things:
The No. 1 thing that determines the effectiveness of a message is the relationship between the sender and the recipient.
We all have people in our lives, it doesn’t matter what the subject line is, we’re going to pay attention to their message because it’s from them. Right? On the other hand, if your phone rings and it says potential spam, there’s almost no chance you’re going to answer it. So relevancy of that relationship is very important.
The second most important thing is the relevancy to the time that the message is sent. So the cycle of what’s happening in the world becomes extremely important for creating effective messaging. The way to start that conversation is to leverage what I call the formula for engagement — basically we have to raise their curiosity and leave it unresolved.
SW: What are some use cases of the formula for engagement?
DS: So first, as a brand, we create content for agents that’s designed to go to people they know, typically past clients and sphere. And this content is not typically about real estate. It’s about something interesting that’s happening today, that we can use as conversation starter.
The second type of content we send is lead conversion and nurturing content. The timing, the duration, the frequency — all of that gets influenced by the source of the lead and the time of day that the lead is captured.
The third category is the attraction and recruitment of more people to a brand. Whether it’s branch managers to a mortgage firm, LOs to the branch manager, real estate referral partners to the LOs — there needs to be a very clear understanding that the content strategy must be very appropriate to the goal.
SW: What really differentiates your tech?
DS: Happy Grasshopper is a true managed service so our tech is very important, and yet our core belief is that tech alone isn’t enough. Agents have a lot of technology today. But that doesn’t mean they’re using it as well as they could be.
I have three core beliefs that really underpin everything I do at Happy Grasshopper. The first is that whatever we want to achieve in business, it’s most easily achieved through relationship. The second is that relationships only really live in one place and that’s conversation. And the third is that conversations lead to closings. I’ve yet to meet an agent or an LO who will not earn more commission if they have more conversations.
SW:What past experience influences the way you think about tech today?
DS: Prior to Happy Grasshopper, I built and exited a CRM company. We built white label software for franchisors — we gave the brand exactly what they wanted. And then of course, they’d roll it out to their franchisees who would log in once and then almost never come back. Which was what kept me up at night at the time.
Post-exit, I had this realization that we did it in the wrong order: we really should have built from the bottom up. So very intentionally when I started Happy Grasshopper, we focused only on serving the end user. And then we added teams, and then we added brokerages. And now we’re at the true enterprise brand level. And we get lots of usage and engagement in our application, because we’ve built it in such a way that the end user actually gets value from it every time they use it.
SW: How is AI helping you with the actual content you create? Or is that created by humans?
DS: We do not use generative AI to create content for our members. We have a staff of real human writers, college-educated, with 401(k), medical, dental benefits — real, actual people who take the time to interview our members. And we ask our members to review the content that we wrote for them and confirm whether or not it sounds like them.
And then we leverage the AI to really scrub the data — we’re sending messaging to 37 million contacts, we really need help understanding what the results of all that data means. It’s not like we have just one reporting page where you could see what your open rate was on a particular email and make a good decision. We’ve used the API to parse the messaging for tone, for length. And we use that data in conjunction with the data reporting, to help our human writers understand why particular messages are more successful than other messages. And I’m really proud of the results we’ve been able to create for our members.
We have taken the time to really build this, and we’re at the precipice of massive scale. We’re about to grow tremendously. Because it’s, it’s time for the brands to really understand how we can help all of their agents find more transactions. And in a market that’s having fewer deals closed than in years past, relationships are what’s going to lead people through this.
What do we do in our lives in times of crisis? We turn to people we trust. Whatever’s happening in the market, it can always be used to start a valuable conversation and help the right-minded real estate professionals show up as people who provide massive value rather than just attempt to garner commissions.
SW: What’s the profile of your members?
DS: We have members today in about 40 different verticals. Over 90% of our membership is in real estate and mortgage and we create content for buyers agents, listing agents, team leaders, broker owners, regional management, national management. We’ve also written content for brands.
SW: How do you think about cybersecurity?
DS: At Happy Grasshopper we don’t retain mortgage information, financial information — no one uploads that into our system, because it’s not necessary for us to have that information on file. So just from a business case perspective, if we were ever breached, the sorts of things that would be taken, we would just be limited the contact information. And course, that would be a horrible thing. But I know that being diligent and then having a business use case where we’re not really hanging on to any sort of super-sensitive information is an advantage for us.
SW: What keeps you up at night?
DS: Almost nothing. I sleep incredibly well. I’ve lived a very weird life. I moved a lot. As a kid, I had 14 schools before I graduated. One of my formative experiences was when my father’s boss inherited a sailboat. And my dad volunteered to sail it from the Florida Keys up to Sarasota. And the boat sank — we spent the better part of two days thinking that the sharks were going to come in and eat us. I can tell you: there’s nothing that I’ve ever faced in business that scared me as much as that.
SW: What? I think we need more details!
DS: My dad was a West Point grad, a civil engineer. He was an experienced power boater — he was not an experienced sailor. And that didn’t bother him. He thought, ‘You know what, this would be a great family vacation, let’s go.’ And so we left Islamorada, sailing due east. And he sailed us right into the largest barrier reef in North America. It knocked a hole in the side of the boat and the boat went down really quickly. It leaned over on its side and we had this little hump of fiberglass just above the water that we clung to the rest of the day, waving our arms. And then the sun went down and the tide came up — that night was terrifying. [The family was in the water another day] As the sun came up on the second day, there was a Coast Guard cutter, and they came and got us off the reef.
So, how privileged are we to be alive at this particular moment? The poorest of us have access to things the richest people up to 100 years ago couldn’t even imagine. It’s an amazing time to be alive. And I feel really privileged to be part of that fuel that’s connecting people in the digital age.
An update on loanDepot’s January cyberattack shows that a higher number of individuals were affected than previously disclosed, while tens of millions of dollars in additional expenses will be added to the company’s first-quarter earnings results.
On Tuesday morning, the top 15 U.S. mortgage lender announced that it will notify 16.9 million individuals whose sensitive personal information was impacted by the cyber incident. loanDepot will offer credit monitoring and identity protection services at no cost to them, per filings with the Securities and Exchange Commission (SEC).
The number of individuals affected exceeds the 16.6 million who were informed on Jan. 22.
According to the company, the cyberattack will add approximately $12 million to $17 million in expenses to its first-quarter earnings, the net of expected insurance coverage. The company stated, however, that the incident will not have a material impact on its overall financial conditions for the entire year.
loanDepot has yet to announce a release date for its fourth-quarter 2023 earnings.
California-based loanDepot informed the wider public of the cyberattack that brought its systems down on Jan. 8, adding that the date of the earliest event was Jan. 4. The company began restoring its systems on Jan. 18. On Tuesday, it reported that the cyberattack has been contained.
The incident may have involved “name, address, email address, financial account numbers, social security number, phone number, and date of birth,” of customers, according to a notice of data breach sent to the Office of the Maine Attorney General.
Ransomware gang AlphV/BlackCat later claimed it was behind the cyberattack.
Customers filed several class-action lawsuits following the cyberattack, claiming they were “placed in an imminent and continuing risk of harm from fraud, identity theft, and related harm caused by the data breach.” loanDepot is accused of negligence, breach of contract and unjust enrichment, among other allegations.
The company, which does not comment on pending litigation, wrote to the SEC that it cannot “presently quantify” the expenses related to the lawsuits, but it “does not expect that the cybersecurity incident will have a material impact on its overall financial condition or on its ongoing results of operations.”
Several mortgage companies have recently been the target of cyberattacks, including Mr. Cooper Group, First American and Fidelity National Financial Inc., the parent of servicer LoanCare.
Mortgage executives told HousingWire that these attacks have put the industry in “alert mode.” They don’t have a clear answer for why the mortgage sector, mainly servicers, has sustained so many attacks of late. Still, they acknowledge that they keep a vast amount of customer data and some players may be vulnerable amid a shrinking market.
In today’s rapidly changing technology landscape, businesses in the title insurance, mortgage and real estate industries must prioritize cybersecurity response planning and business continuity. The second in our “Reducing Risk” series, this month’s article provides practical strategies for safeguarding your enterprise to ensure its resilience against cyber threats.
By breaking down complex concepts into bite-sized pieces, we’ll equip you with the information you need to protect your digital assets. Read on to learn how to create a strong shield against risk through the development of an effective cyber response plan and solid business continuity measures.
Understanding cybersecurity response planning and business continuity
Cybersecurity response planning involves creating a plan that outlines how your business will respond to cyber incidents. It’s like having a superhero team ready to jump into action whenever trouble strikes.
On the other hand, business continuity planning focuses on preparing for potential disruptions to your business operations. It’s like having a backup generator to ensure the lights stay on even during a power outage.
The importance of response plans and business continuity
Now that we know what response plans and business continuity are and how they differ, let’s talk about why they matter for your business:
Minimizing Downtime: By having a response plan in place, you can quickly recover from cyber incidents and get back to business as usual. It’s like having a spare key to your office when you accidentally lock yourself out.
Protecting Your Reputation: A well-prepared response plan helps you maintain customer trust and protect your brand. It’s like being known as the go-to real estate agent who consistently delivers results and closes deals on time, ensuring your clients have unwavering faith in your abilities.
Reducing Financial Loss: In the realm of cyber resilience, crafting a response strategy and maintaining business continuity measures is like building a financial fortress. This proactive defense serves as a vigilant sentinel, defending against cyber threats and safeguarding your company’s treasury. It’s the difference between just weathering a storm and strengthening your position, ensuring financial security and operational continuity.
Creating your cybersecurity response plan
Now that we understand the benefits of having a response plan, let’s talk about how to create one that’s tailored to your unique business:
Identify Potential Risks: Start by identifying the cybersecurity risks that could affect your operations. These could include data breaches, phishing attacks, ransomware threats, and more. In much the same way that a seasoned mariner watches the sky to foresee an impending storm, preparing your cyber defenses requires a perceptive eye to detect the subtle signs of digital tempests. Failing to identify and prepare for cybersecurity risks is like ignoring darkening clouds on the horizon. By keeping a vigilant watch and using sophisticated forecasting tools, just as a meteorologist uses radar, we can navigate safely through the turbulent waters of cyber risk.
Establish Roles and Responsibilities: Clearly define roles and responsibilities for your team members so they know how and when to respond in the event of a cyber incident. It’s critical to have a game plan in place in which everyone on your team knows their position and play. Like a well-coordinated football team, in which each player has a specific role that is crucial for the team’s defensive and offensive strategies, clearly defining roles and responsibilities enables your team members to execute a seamless response during a cyber incident.
Document Incident Response Procedures: Create step-by-step guidelines for responding to different types of incidents. These procedures may involve isolating affected systems, contacting law enforcement if necessary, and notifying affected parties. It’s like having a well-drawn map guiding you through a labyrinth. With a clear roadmap in place, you can effectively navigate the complexities of incident response, ensuring a swift and effective resolution.
Building business continuity measures
Creating a response plan is just the first step. Let’s also discuss business continuity measures to ensure your operations stay up and running:
Identify Critical Systems: Determine which systems and services are critical for your business operations. Like a bustling metropolis, where data flows like traffic through its streets, your customer database, transactional infrastructure, and communication platforms serve as critical arteries that keep your business traffic flowing smoothly. By identifying these critical systems, you can put safeguards in place to ensure that information flows freely and that your operations remain uninterrupted.
Develop Backup Strategies: Implement robust backup solutions to ensure the availability and integrity of your important data. Robust backup strategies are analogous to an impenetrable digital safe protecting your most valuable documents. Crafting a multi-faceted backup plan is crucial, as it ensures that in the event of a digital disaster, your critical data is retrievable and safe.
Test and Conduct Regular Reviews: Regularly test your response plan and business continuity measures to ensure they’re effective and up to date. Like a top-ranking sports team, success hinges on both strategy and practice. Frequently running through your emergency protocols is similar to holding scrimmages before the championship. It enables your team to address weaknesses and enhance performance prior to an actual cyber threat.
Final Thoughts on Creating Cyber Resilience
Congratulations on reaching the end of our cyber resilience journey! By creating response plans for cyber incidents and implementing business continuity measures, you can reduce risk and protect your title insurance, mortgage or real estate business. Remember to identify potential risks, establish clear roles and responsibilities, and document incident response procedures. And don’t forget to develop backup strategies, test them regularly, and keep everything up to date. With these steps in place, you’re ready to face any cyber challenges that come your way. Stay cyber-resilient, my friends, and protect your digital kingdom!
Bruce Phillips is Senior Vice President and Chief Information Security Officer for MyHome, a Williston Financial Group Company.
Inside: Explore top high income skills that don’t require a degree. From AI to Cybersecurity to copywriting, learn how to earn big and without a traditional education.
In today’s rapidly changing economy, traditional educational paths such as acquiring a master’s degree are no longer the sole route to a lucrative career.
In my own journey, I discovered that mastering certain high-income skills (stock trading) can lead to financial success that outpaces even those with advanced degrees. This revelation underscores the value of investing time and effort into developing marketable abilities that align with industry demands.
These high-paying skills, often honed through online platforms, specialized training, and real-world experience, provide a level of flexibility. Plus an earning potential that can exceed the prospects of conventional academic education.
As such, they represent a powerful, alternate paradigm for career advancement and personal growth that you may want to check out.
Quick Answer
Typically, these are based on online jobs that include expertise in certain fields. These roles leverage the digital space to generate significant income and careers are in demand into the foreseeable future.
You can learn and develop these skills through online educational platforms, which can open up a plethora of high-paying job opportunities without the need for traditional college credentials.
High Income Skills for Tech and Digital Domination
In case you haven’t heard, AI and the tech world are the focus of most high paying jobs.
In fact, Microsoft, Google, and Apple recently stated they will take certification over a college degree.1
Now, let’s explore the various high-income skills that are currently shaping the technology sector and will move to making over six figures.
AI and machine learning
AI and machine learning are not just buzzwords! These fields represent some of the most lucrative areas in tech. As businesses seek ways to make sense of big data, professionals who can design intelligent systems and algorithms are in high regard.
The beauty is that many resources exist to self-educate in this domain, such as online courses, bootcamps, and certifications, making the path accessible for those without a formal business degree.
Best for: This field is ideal for individuals who have a strong aptitude for mathematics, statistics, and programming, and who are passionate about tech and innovation.
Mastering SEO
Search Engine Optimization (SEO) has become a coveted skill in the arsenal of every digital strategist. Why is it so invaluable? Because it acts as the linchpin for visibility in the digital space.
SEO isn’t just about playing with keywords; it’s about understanding the user’s intent, the algorithms of search engines, and the technical makeup of websites to ensure they’re discoverable.
Mastering SEO involves a cocktail of abilities: from understanding meta tags and crafting content that resonates with both humans and search engines, to building a robust backlink portfolio.
Best for: SEO is suited for those who enjoy both the analytical and creative sides of digital marketing and are interested in a dynamic, ever-evolving field.
Cybersecurity
In the digital age, cybersecurity is not just important—it’s essential. Protecting sensitive data and maintaining the integrity of computer systems against threats can be the difference between a thriving business and one that’s exposed to potentially catastrophic breaches.
Notably, cybersecurity proficiency can often be achieved through specialized certifications, bootcamps, or practical experience rather than a traditional degree. Those who commit to ongoing education and remain vigilant of the industry’s pulse become indispensable assets in any organization.
Best for: Perfect for individuals who have a knack for problem-solving, are detail-oriented, and enjoy learning about technology’s cutting edge.
Software Development
As the pillars of our increasingly digital world, software developers write the code that powers everything from mobile applications to global banking systems. The lure of software development as a high-paying skill is evident.
It’s foundational to virtually every industry, offers diverse opportunities for specialization, and provides the satisfaction of building something tangible.
With abundant online resources like coding bootcamps and tutorials, passionate learners can bypass the traditional degree route and directly jump into this lucrative and fulfilling career.
Best for: Individuals who are logical, detail-oriented, and have a strong interest in technology and its potential applications will find a career in software development both rewarding and profitable.
Mobile app development
Mobile App Development is your ticket into the heart of the booming app economy. As smartphone ubiquity grows, so does the need for innovative apps that simplify life—whether that’s for banking, shopping, or entertainment.
Given the high demand for mobile experiences, companies are willing to pay top dollar for developers who can craft intuitive and effective mobile applications. The best part is that this skill can be honed through free courses or even app-building software for those with limited coding knowledge.
Best for: Perfect for those who are not only passionate about coding but also keen on understanding and improving how users interact with technology.
Blockchain Expertise
The field of blockchain has transcended its association purely with cryptocurrencies to become a high-value asset in various sectors. Businesses seek talented individuals who can leverage this technology for secure, decentralized solutions.
Unlike many traditional roles, the burgeoning blockchain field offers the chance for self-taught experts to demonstrate their value based on their skills, portfolio, and understanding of blockchain’s practical applications.
Best for: Blockchain expertise is a high-income skill ideal for individuals who have a strong foundation in technology and an interest in how it can be used to innovate traditional business practices.
Creativity Pays Off with These High Income Skills
Graphic Design
Embarking on a career in graphic design could very well be your gateway to a creatively fulfilling and financially rewarding job market. By marrying aesthetics with functionality, you bring concepts to life, whether it’s through website visuals, logos, or digital media.
The journey to mastering graphic design can be self-directed—you can learn the principles online, through software tutorials, and practice them into existence.
Best for: Individuals with a flair for the arts who enjoy thinking creatively to solve visual challenges and like the aspect of using technology.
Video Production & Editing
In a content-driven era, where video is king, mastery in this field could land you lucrative gigs across various platforms and industries.
Whether it’s for digital marketing, entertainment, or online education, the demand is high, and the barrier to entry is lower than ever—thanks to a plethora of self-teaching resources and accessible technology.
Best for: Those who have a keen eye for detail and a passion for creating engaging, high-quality video content that tells a story.
Professional Photography
Photography captures more than images; it encapsulates emotions, stories, and moments. With the advent of high-quality smartphone cameras and affordable DSLRs, the skill of professional photography is more accessible than ever.
Whether for stock photography, events, or branding, your keen eye for composition and lighting can open doors to a rewarding career without the need for a degree.
Best for: Individuals with a passion for visual arts, a creative mindset, and a strong sense of detail are often the best fit for a high-income career in professional photography.
Copywriting
The pen (or keyboard) can indeed be mightier than the sword in today’s digital-driven world through copywriting.
Articulating compelling narratives that resonate with audiences can catapult brands to new heights, making this skill a valuable asset. The best part? You can cultivate your copywriting prowess from anywhere, thanks to online courses, ebooks, and practice platforms.
All you need is a sharp mind, a clear writing style, and a grasp of persuasive techniques.
Best for: Copywriting is a top choice for those who love writing and are curious about a multitude of topics, with an interest in marketing principles and audience engagement.
Voiceover Artistry or Podcast Production
Unlock the power of your voice and make money – a skill set that’s becoming increasingly profitable. Whether you’re voicing animated characters or hosting a thought-provoking podcast series, the audio medium is a bustling marketplace.
Podcasting, it’s about creating a compelling narrative that listeners can’t resist. While for voiceovers, it’s about bringing scripts to life. Both can be learned through online tutorials, training programs, and practice.
Best for: Individuals with a strong, versatile voice and passion for storytelling will find voiceover work and podcast production both lucrative and rewarding, even without formal training.
Marketing High Income Skills Know-How
Content Creation
Content Creation has become the cornerstone of the digital marketing world, attracting not just audiences but also significant revenue streams. As a content creator, you can weave words, videos, or images to capture attention, inspire, and inform—whether it’s through social media, websites, or other digital platforms.
My path to becoming a content creator was primarily through hands-on experience as well as through consistent practice and staying up-to-date knowledge of digital trends.
Best for: Content Creation is especially suited for those with a creative mindset, who enjoy storytelling and are adept at using digital tools to craft content for an online audience.
Social Media Marketing
This is a brilliant intersection of creativity, strategy, and communication. As a social media marketer, you’ll help brands navigate the bustling social landscape, where billions of users engage daily.
You’ll be tasked with crafting campaigns, analyzing data, and connecting with audiences in a way that drives not just likes, but also leads and loyalty—all of which you can master through free online resources and real-world practice.
Best for: Those who enjoy fast-paced, dynamic environments and have a knack for engaging with people and understanding modern communicative trends.
Affiliate Marketing
Becoming an influencer and tapping into the world of affiliate marketing seems so easy but truly it is a strategy where your persuasion skills can translate into earnings—all without a formal degree.
By promoting products or services via unique affiliate links, you earn commissions on sales. Flourishing in this domain stems from understanding your audience and aligning the products you endorse with their interests.
Best for: Those who have a passion for sales and marketing, are comfortable with self-promotion, and are interested in monetizing their digital presence.
Sales Strategies
The key to unlocking staggering profit margins and business growth is sales and this doesn’t require formal education. This high-income skill revolves around understanding consumer psychology, building relationships, and convincingly presenting products or services.
Many times, those in sales have a knack for the industry. Whether refining your approach through online courses, books, or hands-on experience, excellence in sales comes down to a blend of empathy, insight, and adaptability.
Best for: Excellent fit for outgoing individuals who thrive in competitive environments and derive satisfaction from meeting and exceeding targets.
High Income Skills That Work With People
Language translation and interpretation
This is not only about converting words from one language to another; it’s about bridging cultural divides and facilitating communication. With the globalization of business and the rise of remote work, fluent speakers in multiple languages can capitalize on a multitude of high-paying roles.
And the best part? You can often get started with just bilingual proficiency, some formal certification, and a deep understanding of cultural nuances.
Best for: Ideal for multilingual individuals passionate about language and communication, with a desire to facilitate dialogue in an increasingly connected world.
Freelance consulting in various niches
These are seasoned professionals with an avenue to monetize their wealth of experience and expertise. This thriving field allows you to empower clients with your knowledge, whether it’s in marketing, finance, HR, or any other domain.
What’s more, you can kickstart this lucrative journey with minimal prerequisites—a strong track record, a portfolio of successful projects, and perhaps some industry-recognized certifications.
Best for: Experts in their respective fields who are adept at problem-solving, enjoy sharing their insights and are looking for flexible, high-income opportunities.
Coaching
This is a skill that transforms lives and careers, catapulting you into roles where you guide and motivate others to achieve their personal and professional goals.
As a coach, whether it’s in life, business, career transition, or personal development, you can create a substantial income stream. What’s particularly enticing about coaching as a high-income skill is that it often requires no formal degree—many coaches are self-taught, certified through various programs, and most importantly, driven by a passion to help others succeed.
Best for: Coaching is perfect for individuals with a strong desire to help others, who can cultivate trust, and who possess both the self-discipline and initiative to build their own coaching business.
Public Speaking
Often touted as a soft skill, public speaking has immense potential as a high-paying expertise. The ability to captivate, engage, and influence an audience is invaluable in various professional settings—from corporate presentations to motivational speaking circuits.
The good news is that you can develop this skill through local workshops, online courses, and ample practice. Perhaps even more compelling, is how public speaking bolsters other aspects of personal development, such as confidence and clarity of thought.
Best for: Individuals who enjoy expressing their ideas, exhibit strong interpersonal abilities and derive satisfaction from influencing and inspiring others.
Real Estate
A dynamic field where you can significantly profit from the buying, selling, and leasing of property.
With the right approach and knowledge, personalized by your unique sales flair, you can achieve notable success without the prerequisites of a higher degree. It’s all about your ability to network, negotiate, and understand market trends, guided by state-specific licensing requirements.
Best for: Suited to go-getters with an entrepreneurial spirit, a passion for property, and the perseverance to cultivate a strong portfolio of clients and sales.
High Income Skills for Introverts
Stock Trading
My personal gateway to the exhilarating world of finance, where the potential for high earnings exists for those with the knack and nerve for it.
This high-stress skill—often considered one of the most lucrative skills without a degree—entails buying and selling stocks or options to capitalize on daily market fluctuations. While challenging, with diligent self-education, a cool head for numbers, and a calculated risk approach, you can make stock trading a profitable venture.
Best for: Stock Trading is particularly fitting for those who exhibit patience, enjoy learning about economics and finance, and can handle significant levels of stress without clouding their judgment. Highly recommended to take an investing course.
UX/UI Design
Focusing on crafting meaningful interactions between users and products, UX/UI designers are the architects behind the intuitive use of websites and applications.
The plethora of free resources and communities available online means you can build a portfolio and learn this sought-after skill without a degree.
Best for: Creative minds who have an affinity for technology and user psychology and who enjoy the iterative process of improving product usability and appeal.
Web development and coding
Building and maintaining the structural foundation of websites offers a variety of high-income opportunities without necessarily requiring a four-year degree. Armed with the knowledge of HTML, CSS, and JavaScript, which can be self-taught through platforms like Codecademy, you can create and innovate on the internet’s exciting canvas.
Best for: Analytical thinkers who also appreciate creative expression, and those willing to evolve with the digital landscape constantly.
Data Analysis
Transforming raw numbers into actionable insights, data analysts contribute significantly to strategic decision-making. Fascinatingly, this skill is achievable without a degree, thanks to a plethora of online tools and courses in Excel, SQL, and Python that are freely available.
With a logical mindset and an eagerness to decipher data stories, you could secure a high-income position in businesses of all stripes, from tech startups to major corporations.
Best for: Suitable for those who enjoy crunching numbers, identifying patterns, and have a deep curiosity about how information can influence business strategies.
Bookkeeping
A critical yet often understated skill that plays a foundational role in businesses both big and small. As a bookkeeper, you steward financial accuracy, track transactions, and ensure the book balance.
What may come as a surprise is that modern bookkeeping doesn’t always require a degree—there are online courses that can pave the way for a high-income career for detail-oriented and number-savvy individuals.
Best for: Those who appreciate routine, enjoy working with numbers and take satisfaction in playing a key support role in a business’s financial health.
Must Need High Income Soft Skills
In today’s competitive job market, possessing high-income soft skills can significantly enhance your career trajectory and boost your earning potential.
These soft skills not only complement your technical abilities but also ensure you are a valuable asset to any team, fostering seamless collaboration and leadership. As the workplace evolves, employers increasingly seek candidates who exhibit a rich blend of interpersonal and strategic skills that drive business success.
Problem-solving skills for critical situations are invaluable, and the best news? Whether it’s through active listening, analytical reasoning, assessing risks, or critical thinking, being adept at navigating complex problems can set you apart in the workforce.
Communication skills in professional environments are the linchpin of a thriving career. Being able to articulate your thoughts and listen to others effectively means smoother collaborations and clearer negotiations.
Time Management for efficient productivity is a transformative skill that can make or break professional success. Mastering time management means accomplishing more in less time, leading to greater productivity without the need for a formal degree.
Leadership and Team Management capabilities signal an upgrade in your professional toolkit. Great leaders can marshal a group towards common goals, fostering teamwork, and eliciting the strengths of each member.
Negotiation Skills for Maximizing Value are a powerhouse in the world of commerce, crucial for deal-making and advancing business interests. Learning the art of negotiation is possible without formal education; it’s about understanding human psychology, effective communication techniques, and strategic planning.
Creative Thinking for Innovative Solutions is a valued asset in any business context, prized for driving forward unique and effective problem-solving. This type of thinking allows you to step outside traditional boundaries and generate fresh ideas.
Stepping into the entrepreneurial arena can be your ticket to independence and potential high earnings. Entrepreneurs are the trailblazers of the business world, initiating new ventures, and driving economic growth. While there’s no fixed educational path to entrepreneurship, the journey is fueled by a diverse skill set including innovation, perseverance, management, and the ability to pivot strategies as needed.
FAQs
A skill is considered ‘high-paying’ in 2024 if it is in high demand, offers significant value to employers or clients, and requires a level of expertise that’s not easily found.
These skills typically address current market needs, technological advancements, or specialized knowledge that can drive revenue, increase efficiency, or create competitive advantages. Essentially, the rarer and more necessary the skill, the higher the potential earning power becomes.
Yes, self-taught skills can compete with a traditional degree, especially in industries that prioritize practical experience and proven ability over formal education.
Personally, I can attest to this as I learned many of these high income skills long after I completed my degree.
In fields like technology, digital marketing, or creative arts, a portfolio showcasing your work often carries more weight than a degree. Furthermore, many companies adopt skills-based hiring practices, valuing competency and initiative as key indicators of a candidate’s potential.
Which High Paid Skill to Learn Will You Focus on?
In conclusion, acquiring high-income skills is a powerful strategy for advancing your career and unlocking new professional opportunities or even side hustles. In fact, many are ways to make money online.
This is a simple way to increase the amount of money you make each month.
By embracing continuous learning to hone these in-demand abilities, you can significantly enhance your earning potential and job market desirability.
Investing in the development of high-income skills will pave the way for a brighter, more prosperous future. Just like finding a low stress jobs that pay well without a degree.
Don’t just read. Now, is the time to take action!
Source
Business Insider. “Microsoft doesn’t require a college degree for entry-level jobs.” https://www.businessinsider.com/microsoft-execs-no-college-degree-for-entry-level-positions-2020-2#ping-look-who-leads-microsofts-cybersecurity-detection-and-response-team-added-that-candidates-who-apply-to-jobs-without-a-college-degree-already-signal-a-level-of-determination-that-she-respects-3. Accessed February 18, 2024.
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On February 2, 2024, Sage Home Loans Corporation, formerly known as Lenox Financial Mortgage Corporation (“Lenox”), filed a notice of data breach with the Attorney General of California after discovering that it was the recent victim of a cyberattack. In this notice, Lenox explains that the incident resulted in an unauthorized party being able to access consumers’ sensitive information, which includes their names, Social Security numbers, addresses, driver’s license numbers, financial account information and medical information. Upon completing its investigation, Lenox began sending out data breach notification letters to all individuals whose information was affected by the recent data security incident.
If you received a data breach notification from Sage Home Loans Corporation, it is essential you understand what is at risk and what you can do about it. The letter may have also been sent by Lenox Financial Mortgage Corporation, which is the name previously used by Sage Home Loans. A data breach lawyer can help you learn more about how to protect yourself from becoming a victim of fraud or identity theft, as well as discuss your legal options following the Sage Home Loans data breach. For more information, please see our recent piece on the topic here.
What Caused the Sage Home Loans Data Breach?
The Sage Home Loans data breach was only recently announced, and more information is expected in the near future. However, Lenox’s filing with the Attorney General of California provides some important information on what led up to the breach. According to this source, on December 19, 2023, Lenox detected unusual activity within its computer system that appeared to be related to a ransomware attack.
In response, Lenox took steps to secure its network and then began working with outside cybersecurity specialists to investigate the incident. Ultimately, Lenox was able to determine that an unauthorized actor gained access to the Lenox network on December 5, 2023, and obtained certain data from the network on December 19, 2023.
After learning that sensitive consumer data was accessible to an unauthorized party, Sage Home Loans reviewed the compromised files to determine what information was leaked and which consumers were impacted. While the breached information varies depending on the individual, it may include your name, Social Security number, address, driver’s license number, financial account information and medical information.
On February 2, 2024, Sage Home Loans sent out data breach letters to anyone who was affected by the recent data security incident. These letters should provide victims with a list of what information belonging to them was compromised.
More Information About Sage Home Loans Corporation
Sage Home Loans Corporation is a financial services company based out of Santa Ana, California. Previously known as Lenox Financial Mortgage Corp., Sage Home Loans is a mortgage lender that does business under the name WesLend Financial. The company allows borrowers nationwide to apply for and obtain a mortgage online. Sage Home Loans employs more than 300 people and generates approximately $24 million in annual revenue.
Editor in Chief Sarah Wheeler sat down with Matt VanFossen, CEO of Absolute Home Mortgage and Mortgage Automation Technologies, to talk about his unique view of the housing ecosystem and how it influences how he builds technology. Van Fossen not only heads a mortgage lender and a tech company, but is the president of the Mortgage Bankers Association of New Jersey and a board member of the Community Home Lenders of America.
Sarah Wheeler: You wear a lot of hats. How do all those different roles influence the technology you build?
Matt VanFossen: We build technology not only to sell but that we want to use. That culture resonates throughout our company and into our product lines. A differentiating factor of our tech is that lots of point of sale systems are built to faciitate loan officers with the business they already have. While we do that, we’re also focused on driving new business — from new clients but also from the relationships they already have.
We are focused on compliance and data capture at the top of the funnel, so we look at: how do we introduce loan officers not only to new technology, but to new business opportunities?
SW: What does that look like in very practical terms?
MVF: We realized that we needed to focus on the real estate agents our loan officers work with. Over the past 10 years, loan officers have become accustomed to forwarding their application right to the referral and taking the app, but what about their real estate agent counter-parties? Right now LOs have to go and remind agents and constantly be in front of them asking about referrals.
But a real estate agent has a limited amount of resources for elevating their referral. They might be driving down the road when they get a call or text message. Then they have to take whatever information they got and manually enter into their CMS. So we recoded the point of sale system so we can partner with agents on software. Now they have their own online application, but it’s not an application for a mortgage — it’s an application to buy or sell a house.
And now, anytime the agent uses those workflows, the loan officers are privy to that information. LOs can easily go in and see if they need to be preapproved and do that from their phone. So we reverse-engineered a lot of what we’ve built for loan officers and applied it to agents.
We basically created a massive collaboration system. From the first point of contact the customer has with the agent, they are being introduced to a digital ecosphere and they can remain in sthe ame portal all the way through the transaction. It’s the same portal to sign docs, eClose, get servicing information, even post-closing information. And if they ever need to apply for a new mortgage or refinance, they’re still living inside that port. So we’re keeping our customer from the first point of interaction all the way till the end of the real estate transaction and for the remainder of their lives inside of a single ecosphere.
SW: What was the “aha” moment that led to this development?
MVF: I hang out with a lot of LOs and agents, just in a social context, so the aha moment came when I was on a trip with friends. One is an agent and the other is an LO, and they both had to step away from the table like four different times, and I realized that the agent was getting new client referrals and had to pass that back to their team manually. I had completely missed this — that real estate agents don’t have an online application. An LO can text the link to their application portal, but not the agent. I realized we’ve been focusing for a decade on how to streamline this process for LOs but had abandoned our counterparties.
Because of my positions at a tech company, a mortgage company and in regulatory compliance, I have a view into all three points of this triangle — and I have developers that can go build it! Sitting on top of all three at the same time, I can see how they are all intimately intertwined, and I can test it with my own lender. I’m a user of this tech so I’m the mad scientist that’s experimenting on himself! I can jump in and code something, call an agent to have them come in and see it, then use with my own clients first. Then we can think about the enterprise version. It’s almost farm-to-table programming.
SW: So does that mean you only build versus buy?
MVF: No, because there are differet platforms that have some amazing features. We will build over buy in certain things but you can’t take over everything. We have some fabulous vendor tech partners in this industry. We’re focused on point of sale because it gives us control over the loan officer and agent and client experience, so we want to be in the driver’s seat for that.
But even with that mini-POS for agents, it’s not a full-blown CRM and they still need to use their CRM vendors, who will be better at journey campaigns, for example. And we work with awesome loan origination systems like Encompass to maintain compliance and a database. We can’t conquer every avenue so for us it’s about strategy and where we can get the biggest lift with our own tech and then shop the marketplace for strategic partners.
SW: What keeps you up at night? Security?
MVF: I am constantly thinking about this and how I’m not only responsible for cybersecurity for my various companies but also now my point of sale. But we’re very unique and the architecture we built for it was not possible more than a year ago. So rather than having two databases — one POS database where people apply online and then that application goes into another database where you hold that PII inside of it, and you synch those through an API — we don’t do it that way. We have single source of truth.
When an application comes in, or any of the Realtor referrals come in, they all get logged immediately into ICE’s Encompass. We don’t have a database — it all instantaneously, through an encrypted API transaction, as soon as the application hits it goes into Encompass. So there’s only one place and location and all of the loan data resides in that. So we are now more secure than ever because ICE has phenomenal information security. So what we do is put a customization layer on top of it. It’s a highly configurable, easy-to-use user interface that shares a database, rather than maintaining two databases. And that solves a lot of cybersecurity issues.
The other thing that keeps me up is mortgage rates and when we’ll see quantitative easing. What the industry really needs is to get some tailwind into the market.
When you look at the three things I’m involved in — I’m running a lender, I’m running a FinTech and I’m in advocacy. What solves all of that is a little bit lower interest rates. That will strengthen the housing market and make sure that independent mortgage bankers have stability in extremely volatile times. That ensures the tech company will continue to innovate, and all of those things together is going to help consumers, especially low to moderate income consumers.
loanDepot’s latest update of its ongoing cyberattack shows that hackers gained access to the sensitive personal information of about 16.6 million individuals. The update, released Monday, does not reveal details of the data accessed by the unauthorized third party.
“Unfortunately, we live in a world where these types of attacks are increasingly frequent and sophisticated, and our industry has not been spared. We sincerely regret any impact to our customers,” Frank Martell, loanDepot CEO, said in a statement.
The company said it will notify individuals affected by the cyber incident and “offer credit monitoring and identity protection services at no cost to them.”
The top-15 U.S. mortgage lender informed customers and the wider public of the cyberattack that brought its systems down through a filing with the Securities and Exchange Commission (SEC) on Jan. 8. It indicated the date of the earliest event was Jan. 4.
On Jan. 18, loanDepot began to restore its servicing customer portal. It also brought back online its portal for Home Equity Line of Credit (HELOC) customers, “MyloanDepot customer portal” dedicated to online applications and status tracking, and the “mellohome” portal for its real estate affiliate.
Martell said the entire team has worked tirelessly to support customers and partners and is “pleased” by the progress in quickly bringing systems back online.
While the company is working to restore all its technology systems, it’s already the target of a class-action lawsuit filed by a customer.
On Jan. 19, Daroya Isaiah filed a class-action-seeking lawsuit against the company, claiming that by then, loanDepot hadn’t disclosed the total number of customers impacted by the cybersecurity incident and the sensitive personal information or PII accessed.
The lawsuit states that customers “have been placed in an imminent and continuing risk of harm from fraud, identity theft, and related harm caused by the data breach and should remain vigilant for any signs of fraud or identity theft for the indefinite future.”
The customer said since the data breach, she has experienced “a significant increase in SPAM phone calls or text messages; and noticed strange information or accounts on her credit report.” She believes it could be attributed to the data breach.
The plaintiff accuses the company of negligence, breach of contract, breach of fiduciary duty and unjust enrichment, among other allegations.
A spokesperson at loanDepot said the company does not comment on “pending litigation.”
The rash of recent mortgage and title industry data breaches serves as a sobering reminder of the paramount importance of cybersecurity. In this first installment of our reducing cyber risk series, let’s explore a crucial facet of cybersecurity: bolstering resilience in your critical systems and services. Just like a well-built castle can withstand attacks, having defined resiliency requirements for your digital infrastructure can help reduce risks and protect your business from a potential breach. Here are some tips on how to reinforce your digital castle.
Understanding resiliency
Before we delve into the benefits of defining resiliency requirements, let’s get on the same page about what resiliency means in the context of cybersecurity. Resiliency is your ability to bounce back from cyberattacks or system failures and quickly restore normal operations. It’s like having a sturdy drawbridge that can be raised to keep out intruders or having backup knights ready to defend your castle when needed.
The importance of defined resiliency requirements
Having clearly defined resiliency requirements for your critical systems or services brings a multitude of benefits. Here are a few reasons why it’s important:
Quick recovery: Defined resiliency requirements help you establish protocols and processes to quickly recover from cyber incidents or system failures. It’s like having a team of skilled architects who can swiftly repair damaged walls and restore order in your castle.
Minimize downtime: By implementing resiliency measures, you can reduce the impact of cyber incidents on your business operations. It’s similar to having a secondary water supply that ensures your castle’s moat remains filled, even if one source is compromised.
Protecting customer trust: Building resilience in your systems and services shows your customers that you take their security seriously. Just like a sturdy gate assures the villagers that they’re safe within the castle walls, having defined resiliency measures gives your clients peace of mind.
Defining resiliency requirements
Now that we understand the importance, let’s talk about how you can define resiliency requirements for your critical systems or services:
Identify critical assets: Start by identifying the systems or services that are crucial for your business operations. These might include your customer database, transactional systems or communication platforms. Consider what would have the most significant impact on your business if compromised.
Set recovery time objectives (RTO) and recovery point objectives (RPO): RTO specifies the time it should take to recover your system after an incident. RPO determines how much data you’re willing to lose during recovery. Define these objectives based on your business needs and constraints.
Develop backup and disaster recovery plans: Establish robust backup and disaster recovery plans that align with your set objectives. Regularly test and update these plans to ensure their effectiveness. It’s like having an emergency escape route from the castle that’s well-maintained and ready to use at any time.
Proactive measures for resilience
While defining resiliency requirements is crucial, there are additional proactive measures you can take to enhance your system’s resilience:
Regular updates and patches: Keep your systems and software up to date to prevent known vulnerabilities from being exploited. It’s like strengthening weak points in your castle’s walls to ensure they can withstand attacks.
Implement redundancy: Duplicate critical systems and services to ensure failover capabilities. This way, even if one system or service goes down, another is ready to step up and fill the gap. It’s like having multiple secret entrances to your castle, so even if one is compromised, another remains hidden and available for use.
Some final thoughts
Building cyber resilience is crucial for small to medium-sized businesses in the mortgage, title insurance and real estate segments. By defining resiliency requirements, you can set the foundation for a strong and secure digital castle. Resilient systems help you recover quickly, minimize downtime and build trust with your customers. So, take the time to identify critical assets, set recovery objectives and develop robust backup and disaster recovery plans. Don’t forget to implement proactive measures like regular updates and redundancy. With a resilient digital castle, you can confidently protect your business from cyber threats and ensure the safety of your digital treasures. Stay resilient, stay vigilant and safeguard your realm!
Bruce Phillips is senior vice president and chief information security officer for MyHome, a Williston Financial Group Company.