In a recent development, Patelco Credit Union, a nonprofit cooperative based in Northern California with over 450,000 members, has reported being targeted in a ransomware attack that has resulted in widespread disruption of account services. The credit union, which boasts $9 billion in assets and operates 37 local branches, issued a statement informing members that they may face challenges in the coming days and weeks as the organization works towards resolving the incident.

The attack occurred on June 29, prompting Patelco Credit Union to proactively shut down certain banking systems to contain and remediate the issue. Consequently, online banking services and several other transactions have been rendered unavailable, while others have experienced limited functionality. CEO Erin Mendez assured members that the credit union is actively working towards a safe and secure restoration of their banking systems.

The disruption has caused inconvenience to numerous members, with some experiencing difficulty accessing their Social Security payments. Enrique Juarez, a Patelco member, expressed frustration, stating that he is unable to check his balance or perform any transactions until the situation is resolved.

Security expert Ahmed Banafa has speculated that the attackers likely gained access to Patelco's internal databases through a phishing email, encrypting its contents and effectively locking the credit union out of its own systems. Banafa further commented that it is probable that the hackers will demand a ransom to restore normalcy, potentially holding the bank's accounts hostage until their demands are met.

While Patelco Credit Union has not disclosed specific details on their recovery plan, they have acknowledged the potential risk to customers' personal information. The credit union assured customers that if the ongoing investigation reveals any compromise of individuals' information, they will promptly notify those affected and offer resources to help safeguard their data in accordance with applicable laws.

In response to the incident, Patelco Credit Union has taken steps to minimize the impact on its members. It announced the waiver of overdraft, late payment, and ATM fees until the situation is resolved. Members who need access to funds from direct deposits have been advised to write checks, use ATM cards, or make purchases. However, some services such as online banking, the mobile app, outgoing wire transfers, and online bill payments remain unavailable.

Patelco branches, call center services, and live chats are also experiencing limited functionality, along with debit and credit card transactions and direct deposits. Conversely, services such as check and cash deposits, ATM withdrawals, ACH transfers, ACH for bill payments, and in-branch loan payments are still available.

As the credit union continues to navigate through the aftermath of the ransomware attack, Patelco has assured its members that they are collaborating with leading third-party cybersecurity experts, regulators, and law enforcement agencies to expedite the restoration process.

In the midst of the ongoing investigation, Patelco Credit Union remains committed to keeping its members informed and working diligently to mitigate the impact of the attack on their financial services.