Credit Union Ransomware Attack Locks Customers Out Of Accounts

DUBLIN, CA — Patelco, a Dublin-based credit union that is one of the largest in the Bay Area and the country, shut down its day-to-day banking systems due to a ransomware attack. Their roughly half a million customers have been unable to access many critical features since Saturday, and the bank was unable to provide an estimate when those services will be restored.

Due to the attack, customers can no longer make electronic transactions, receive direct deposits, conduct balance inquiries, or pay bills online, the bank said Sunday on its social media channels and in an email sent Saturday to customers. Debit and credit card transactions are functioning at a limited capacity, and customers can still make cash withdrawals and deposits at Patelco ATMs or any of its 30,000 shared branch ATMs.

The outage came just before the first of the month, when rent, mortgage, and many other payments often made online are due, and right before a national holiday.

The bank said Sunday evening that its teams are working to resolve the outage, and its branches and customer service agents will be open during regular business hours, though customers should anticipate long wait times. “We’ll answer your questions as best we can, but we cannot provide specific information on your accounts at this time,” Patelco said. “We will provide further updates as information becomes available. We know this situation is concerning, and we are committed to keeping you informed as the investigation continues.”

On Monday, the credit union’s press office confirmed that the security incident was a ransomware attack, and said that the bank was working “round the clock” and has “engaged a leading third-party cybersecurity firm to help us to investigate and recover as soon as possible.”

The bank also said on its website that “we deeply apologize for the inconvenience and frustration caused by this incident.”

Customers are understandably worried that they will lose money, but credit unions are insured by the National Credit Union Administration. Individual accounts are insured up to $250,000, even if the bank fails or closes.

The San Francisco Chronicle advised arranging alternative payment methods for automatic payments, and requesting fee reversals from the credit union for any late penalties.

Customers can also file complaints with the Consumer Financial Protection Bureau here or by calling 855-411-2372.

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