Patelco 'Stabilizes' Network, But Ransomware Outage Continues

DUBLIN, CA — Patelco Credit Union’s CEO said Sunday that the credit union has “stabilized” its network and has begun processing transactions. The Dublin-based credit union, one of the largest in Northern California, has been out of commission since June 29, when a ransomware attack meant that roughly half a million members could no longer make electronic transactions, receive direct deposits, conduct balance inquiries, or pay bills online. Members have only limited access to physical debit and credit transactions, and must withdraw cash from approved ATMs.

After 10 days, there is “light at the end of the tunnel,” according to CEO Erin Mendez, but the tunnel isn’t quite done yet. “I am happy to report that we have stabilized our network and begun processing transactions,” Mendez wrote Sunday. “Once this is complete and we achieve full banking functionality, our members will be able to access their account balance and accounts as they typically would under normal circumstances. I can’t share an exact date when we will be back to business as usual, but we can see the light at the end of the tunnel. I will keep you updated as we make progress on that front, specifically.”

Mendez also assured members that their money is secure, and “we are marching diligently toward full functionality.” Patelco has established a website devoted to the incident, providing updates, FAQs, and an overview of the incident.

For some customers, Patelco was not diligent enough. NBC Bay Area reported that members have filed a number of lawsuits against Patelco, including one filed in the U.S. District Court for Northern California that aims for class-action status. The suits alleged that Patelco failed to properly secure members’ personal information, which can cause damages for years to come.

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