Wall Street on high alert after massive vendor cyberattack compromises Mortgage Data at JPMorgan, Citi and Morgan Stanley; FBI takes charge of probe

A massive cyberattack on a third-party vendor has put Wall Street on high alert over the weekend after sensitive mortgage data linked to major financial institutions - including JPMorgan, Citi, and Morgan Stanley - was compromised. The breach, reportedly affecting millions of records, has sparked swift action from banks and regulators as they assess the extent of the exposure.

SitusAMC confirmed the breach on Saturday, revealing that the cyberattack occurred on November 12 and that it has spent nearly two weeks determining precisely what data the hackers accessed. SitusAMC, which supports hundreds of banks and lenders nationwide with key functions like mortgage origination, servicing, and payment processing, plays a vital role in the industry. As a result, the potential fallout from the breach could be far-reaching.

According to the New York Times, cyberattacks are nothing new in the corporate world, but this breach has sparked heightened concern on Wall Street because SitusAMC stores extensive personal data from loan applications, including Social Security numbers. The company has been providing banks with near-daily updates as it works to determine the full scope of the information compromised.

JPMORGAN, CITI AND MORGAN STANLEY HIT BADLY BY CYBERATTACK

According to IBT, JPMorgan Chase, Citigroup and Morgan Stanley are among the institutions alerted by SitusAMC that their clients’ data may have been affected by the breach. The company has confirmed that the compromised information pertains to residential mortgage loans, heightening concerns about the possible exposure of borrowers’ personal financial details.

SitusAMC said it took swift action upon discovering the cyberattack and has been collaborating with third-party forensic specialists and federal authorities, reported IBT. SitusAMC CEO Michael Franco said in a statement on Saturday that the company has notified law enforcement about the incident.

"We remain focused on analyzing any potentially affected data," Franco said as quoted by New York Times.

FBI TAKES CHARGE OF CYBERATTACK PROBE

The Federal Bureau of Investigation (FBI) is now leading the investigation, with officials confirming they are working to determine how the hackers gained access and what data may have been taken.

"While we are working closely with affected organizations and our partners to understand the extent of potential impact, we have identified no operational impact to banking services," Kash Patel, FBI Director, said in a statement as quoted by New York Times.

WALL STREET SUFFERS MOST DUE TO DATA BREACHES

According to IBT, cybersecurity experts caution that this breach underscores a broader vulnerability within the US financial system. Banks now depend heavily on a limited group of major third-party vendors for loan processing, data management, and regulatory support. When one of these key providers is compromised, the ripple effects can quickly extend across the entire industry.

IBT cited a recent SecurityScorecard study showing that 97% of the top 100 US banks experienced at least one third-party data breach in the past year, highlighting just how fragile and vulnerable the current financial ecosystem has become.