Patelco Credit Union, a not-for-profit credit union serving Northern California and the Bay Area, was hit by ransomware over the weekend, which cut off financial services to its nearly half a million members.

System Interruption

On Saturday morning, June 29, the Dublin-based credit union took to social media to report that all of its services, including online banking, mobile app, direct deposits, transfers, and debit/credit card transactions, were down.

The next day, President and CEO Erin Mendez emailed Patelco members to inform them of a "serious security incident," but she did not initially provide any information, as per a CBS News report.

According to the email, the credit union is collaborating with cybersecurity professionals to evaluate the problem and get services back up and running. Also, Mendez said there is no current anticipated time for restoration.

In an email sent on Monday, July 1, a representative from Patelco said that the company had to proactively shut down some of its day-to-day banking systems to contain and remediate the issue. This suggests that the security breach was a ransomware assault. During the interruption, Patelco said that its workers would not have access to customer account information.

Reportedly, withdrawals and deposits may still be made at any 30,000 Patelco-affiliated branch ATMs in the United States. Patelco's branches and phone center are up and running as usual but with lengthier wait times.  

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What Is Ransomware Attack?

One kind of malicious software is ransomware. It locks a computer system or network at the victim institution and then demands money to retrieve access.

These assaults often cause expensive operational interruptions and the loss of crucial data. Authorities have warned that paying the ransom does not ensure the encrypted files will be decrypted.

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