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Patelco Credit Union Scrambling to Restore Systems Following Ransomware Attack

Patelco Credit Union shuts down banking systems and suspends electronic operations in response to a ransomware attack.

Patelco Credit Union is scrambling to restore banking services after a ransomware attack forced it to shut down its systems over the weekend.

The Dublin, California-based credit union, which serves roughly 500,000 customers, initially announced the incident on Sunday, roughly 24 hours after the outage occurred.

The attack forced the financial institution to shut down some of its day-to-day banking systems, which impacted its online banking services, mobile application, and call center.

“Currently, electronic transactions such as transfers (including Zelle), direct deposit, balance inquiries, and payments are unavailable,” the credit union said.

On Monday, Patelco confirmed that it fell victim to a ransomware attack and that it started the restoration efforts, while the impacted services remained down. Withdrawals at Patelco ATMs and shared branch ATMs have not been affected by the incident, the credit union said.

“Our priority is the safe and secure restoration of our banking systems. We continue to work alongside leading third-party cybersecurity experts in support of this effort. We have also been cooperating with regulators and law enforcement,” Patelco said in an incident notice update.

“Please know that as we take steps to restore our systems, members may experience short, intermittent outages at Patelco ATMs. This is normal and to be expected during our recovery process. Access to shared ATMs will not be interrupted as part of this process and they remain available for cash withdrawals and deposits,” the credit union added.

The company did not reveal whether customer accounts or data had been compromised in the attack, but said that it would reimburse customers for late payment fees caused by the outage.

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“We will also waive any Patelco overdraft, late payment or ATM fees until we are back up and running,” the credit union said.

Patelco has 37 branches across Northern California and is estimated to manage close to $10 billion in assets.

Related: Chicago Children’s Hospital Says 791,000 Impacted by Ransomware Attack

Related: LockBit Ransomware Again Most Active – Real Attack Surge or Smokescreen?

Related: Keytronic Says Personal Information Stolen in Ransomware Attack

Related: Ransomware Attack Played Major Role in Shutdown of Illinois Hospital

Written By

Ionut Arghire is an international correspondent for SecurityWeek.

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