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Ransomware Attack on Patelco Credit Union Disrupts Services for Nearly Half a Million Members

 

A ransomware attack on Bay-area Patelco Credit Union has disrupted banking services for nearly half a million members, and the outage could persist for weeks.

The credit union announced the attack on June 29 via Twitter. The affected services include online banking, the mobile app, direct deposits, transfers, debit and credit card transactions, Zelle, balance inquiries, online bill payments, and monthly statements, among others.

Patelco Credit Union, based in Dublin, California, serves the San Francisco Bay Area and Northern California. In addition to consumer banking, it offers mortgage origination, home equity lines of credit, and mortgage refinancing.

Patelco CEO Erin Mendez issued a statement on Wednesday confirming that cybersecurity specialists have validated the "core systems" and assured members that their money is "safe and secure." However, she mentioned that full system functionality is not expected to be restored over the weekend.

"I know this continues to cause our members frustration and many of you have questions," she said, promising that any fees incurred due to the shutdown will be waived. "We hear your concerns and are working around the clock to address them. Our team is committed to doing everything we can to support our members through this difficult situation."

The Mercury News reported that hackers infiltrated the bank’s internal databases via a phishing email, encrypting its contents and locking the bank out of its systems.

Operating as a nonprofit cooperative, Patelco holds $9 billion in assets. Despite providing daily updates since the attack, there is no clear timeline for when systems will be fully restored, and further outages are possible.

Services that remain operational include check and cash deposits, ATM withdrawals, ACH transfers, ACH for bill payments, and in-branch loan payments.

Patelco Credit Union Working Diligently to Recover from Security Incident

 

A ransomware attack on Patelco Credit Union in the Bay Area has disrupted banking services for nearly half a million members, with the outage potentially lasting for weeks.

The credit union announced the attack on June 29 through Twitter. Affected services include online banking, the mobile app, direct deposits, transfers, debit and credit card transactions, Zelle, balance inquiries, online bill payments, and monthly statements.

Besides consumer banking, Patelco Credit Union also provides mortgage origination, home equity lines of credit, and mortgage refinancing. Headquartered in Dublin, California, the credit union serves the San Francisco Bay Area and Northern California.

On Wednesday, Patelco CEO Erin Mendez issued a statement confirming that their cybersecurity team has validated the "core systems" and assured members that their funds are "safe and secure." However, she noted that the systems would not be operational by the weekend.

“I understand this situation continues to frustrate our members and that many have questions,” Mendez said. She added that any fees resulting from the outage would be waived. “We are aware of your concerns and are working tirelessly to resolve them. Our team is fully dedicated to supporting our members during this challenging time.”

According to The Mercury News, hackers accessed the bank’s internal databases via a phishing email, encrypting the contents and locking the bank out of its systems.

Patelco, a nonprofit cooperative with $9 billion in assets, has been providing daily updates since the attack but has not provided a specific timeline for when services will be fully restored. They have also cautioned that further outages may occur.

Currently, members can still perform check and cash deposits, ATM withdrawals, ACH transfers, ACH bill payments, and in-branch loan payments.