A ransomware attack at Patelco Credit Union in California has caused disruptions to account services, affecting over 450,000 members. The CEO, Erin Mendez, informed members that the incident occurred on June 29 and could take weeks to fully recover from. As a result, online banking and various other services are currently unavailable, while others have limited functionality.
The credit union has taken proactive measures to contain and remediate the issue, which has led to transactions, transfers, payments, and deposits being unavailable. Debit and credit cards are also working with limited functionality. Patelco, with $9 billion in assets and 37 local branches, is working with cybersecurity experts, regulators, and law enforcement to restore its banking systems safely and securely.
Members like Enrique Juarez have reported difficulties accessing their funds, with direct deposits having limited functionality. Security expert Ahmed Banafa suggested that the attackers likely infiltrated the bank’s internal databases through a phishing email and encrypted its contents. The hackers may demand a ransom to restore the systems, following a similar incident at Change Healthcare, which paid $22 million in bitcoin to hackers earlier this year.
Patelco has not disclosed details on its recovery plan but has warned customers that their personal information may be at risk. The credit union is waiving fees for overdrafts, late payments, and ATM transactions until normal services are restored. Members can access funds through check writing, ATM cash withdrawals, or making purchases. Short, intermittent outages at Patelco ATMs are expected during the recovery process, while shared ATMs remain available for withdrawals and deposits.
Currently, online banking, the mobile app, outgoing wire transfers, monthly statements, Zelle, balance inquiries, and online bill payments are unavailable. Branches, call center services, and live chats have limited functionality, along with debit card transactions, credit card transactions, and direct deposits. However, check and cash deposits, ATM withdrawals, ACH transfers, ACH bill payments, and in-branch loan payments are still available for members.
As Patelco continues to work on restoring its systems and services, members are advised to stay updated through the credit union’s security update page for the latest information. Despite the challenges posed by the ransomware attack, Patelco is committed to safeguarding its members’ financial information and providing support throughout the recovery process.
