Impact of ransomware attack on Patelco Credit Union could last for several days

A ransomware attack on Dublin-based Patelco Credit Union could prevent customers from accessing banking services for days or weeks, the company said.

In an email to credit union members, Patelco President and CEO Erin Mendez, a cybersecurity forensics firm helped the company investigate the attack and restore its networks as quickly as possible, but said it would take some time to restore full service to customers.

“The next few days – and weeks to come – may bring challenges for our members as we continue to grapple with the limited functionality we are experiencing due to this incident,” Mendez said in the email.

According to the email, electronic transactions such as recurring transfers, direct deposits and balance inquiries were not possible, including through the Zelle digital payment network. Additionally, Automated Clearing House (ACH) payments made using a Patelco account were not processed, while debit and credit card transactions worked to a limited extent.

The email said that transactions and ACH transfers made at other institutions are processed, as are ACH debits initiated by a biller. Checks written to Patelco accounts are paid, while mortgage or rent payments made by check from Patelco checking accounts are processed. However, each of these transactions will experience a delay in debiting or crediting the Patelco account.

Mendez said Patelco will refund any late fees incurred as a result of the ransomware attack and any overdraft, late payment or ATM fees charged by Patelco will be waived until the system is fully operational again. Mendez also said members who are concerned that late payments could affect their credit scores can have letters written by Patelco on their behalf.

“Rest assured that while we may not have all the answers to your questions right now, we are working hard to resolve this issue and are committed to regular and transparent communication as we learn more,” Mendez said.

The source of the ransomware attack was not identified and there was no information on whether Patelco customers’ personal information was at risk.

Patelco has set up a website at patelco.org/SecurityUpdate with the latest information on the ransomware attack, including service availability.

The credit union has 455,000 members with over one million accounts and 37 branches in the Bay Area and Sacramento area.