UPDATE: Patelco Credit Union says its network is stabilized and functional after ransomware attack
Patelco Credit Union, the third-largest credit union in the greater Bay Area and among the largest nationwide, reported a significant security breach over the weekend, leading to the shutdown of its banking systems.
Erin Mendez, Patelco’s president and CEO, confirmed in an email to the credit union's members on Sunday that essential transactions such as Zelle transfers, direct deposits and balance inquiries were unavailable. She also mentioned that debit and credit card functions were limited.
- Patelco Credit Union security breach: What members need to know and do
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“We are writing to let you know that on June 29, we experienced a serious security incident. This required us to shut down some of our day-to-day banking systems so that we can remediate the issue and contain the impact, including online banking, our mobile App, and our call center,” Mendez wrote. “Currently, electronic transactions such as transfers (including Zelle), direct deposit, balance inquiries, and payments are unavailable.”
With nearly $10 billion in assets and half a million members, Patelco advised those affected to use shared branch ATMs nationwide for cash needs. The institution also assured that branches and customer service channels would operate normally on Monday to assist members.
Lee S. Snider, a Patelco member in Roseville, said that a customer service representative informed them they could not withdraw their money and that direct deposits are impacted. There is no estimated time for resolving the outage.
“They are effectively holding us hostage,” Snider said.
According to the company’s website, Patelco operates 37 branches with approximately 800 employees.
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“Our teams are working around the clock with top-tier cybersecurity experts to assess the situation and to restore service to you,” Mendez wrote. “Unfortunately, we are unable to provide an ETA on when those systems will be running as expected.”
In a social media update late Sunday night, Patelco stated that the outage was not yet resolved.
“We’ll answer your questions as best we can, but we cannot provide specific information on your accounts at this time,” it 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.”
A Patelco spokesperson reiterated that message to the Chronicle on Monday.
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Reach Aidin Vaziri: [email protected]