We propose a stability monitoring approach for the mitigation of cyber threats directed at the wide area control (WAC) system used for coordinated control of Flexible AC Transmission Systems (FACTS) used for power oscillation damping (POD) of active power flow on inter-area tie lines. The approach involves monitoring the modes of the active power oscillation on an inter-area tie line using the Matrix Pencil (MP) method. We use the stability characteristics of the observed modes as a proxy for the presence of destabilizing cyber threats. We monitor the system modes to determine whether any destabilizing modes appear after the WAC system engages to control the POD. If the WAC signal exacerbates the POD performance, the FACTS falls back to POD using local measurements. The proposed approach does not require an expansive system-wide view of the network. We simulate replay, control integrity, and timing attacks for a test system and present results that demonstrate the performance of the SM approach for mitigation.