Ransomware attack on Patelco Credit Union locks customers out of their accounts

Half a million Patelco customers lack access to essential banking services such as electronic payments or account balance inquiries, and there is no end in sight.

July 1, 2024, 5:00 p.m. PDT | Updated July 1, 2024, 5:10 p.m. PDT

DUBLIN, CA — Patelco, a Dublin-based credit union that is among the largest in the Bay Area and nationwide, has shut down its daily banking systems due to a ransomware attack. Its roughly half a million customers have been unable to access many key functions since Saturday, and the bank could not provide an estimate for when those services might be restored.

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

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The outage occurred just before the first of the month, the day when rent, mortgages 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 representatives will be open during regular business hours, but customers should expect long wait times. “We will answer your questions as best we can, but we cannot provide you with specific information about your accounts at this time,” Patelco said. “We will continue to update you as information becomes available. We know this situation is concerning and we are committed to keeping you updated as we continue to investigate.”

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

The bank also stated on its website: “We deeply apologize for the inconvenience and frustration this incident has caused.”

Customers are understandably afraid of losing 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 asking the credit union to reverse any late payment penalties.

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

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