Bay Area Credit Union Struggles to Recover After Ransomware Attack
Who:
Patelco Credit Union, a Bay Area financial institution with $9 billion in assets and 450,000 members nationwide.
What:
On June 29, Patelco Credit Union was hit by a ransomware attack that forced it to shut down several key banking systems.
The attack has left tens of thousands of customers without access to their accounts and core electronic transactions such as direct deposits, transfers, balance inquiries, and payments.
The attack also impacted the credit union's online banking systems, mobile app services, and call center.
Impact:
Customer Disruption: Customers are experiencing significant inconvenience, unable to access their accounts or perform essential transactions.
Service Outages: Patelco's ATMs may experience intermittent outages, though access to shared ATMs for cash withdrawals and deposits remains available.
Recovery Efforts: CEO Erin Mendez stated that Patelco is working with third-party cybersecurity experts to restore systems, but no estimated time for resolution has been provided.
Ransomware Trends: The situation reflects a common pattern in major ransomware incidents, where recovery can take weeks and involves extensive efforts to rebuild systems and address security vulnerabilities.
Potential Data Theft: There is no confirmation yet if data was stolen, but modern ransomware attacks often involve data theft and extortion.
Broader Context:
Increased Ransomware Incidents: Ransomware attacks are on the rise, with smaller organizations being more frequently targeted.
Extortion Threats: Many ransomware actors now steal data and threaten to leak it if ransoms are not paid, adding to the complexity and severity of these attacks.
Examples of Impact: Similar incidents, such as the attack on Memphis-based Evolve Bank & Trust by the LockBit ransomware group, demonstrate the potential risks of data theft and leakage.
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