Dublin-Based Patelco Credit Union Halts Operations Due to 'Serious Security Incident'
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Loading... - Caroline Ibsen
- 02 Jul 2024
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Nearly half a million customers of Patelco Credit Union are unable to access their funds following a "serious security incident" that occurred on Sunday. Patelco, which operates multiple locations across the state, had to shut down several of its banking systems to address the issue.
Incident Details
Erin Mendez, Patelco’s president and CEO, informed customers via email that on June 29, the credit union experienced a significant security breach. To contain the impact and remediate the issue, the institution had to disable online banking, its mobile app, and its call center services. As a result, electronic transactions, including transfers, direct deposits, balance inquiries, and payments, are currently unavailable.
Immediate Actions and Customer Communication
Patelco has been collaborating with cybersecurity experts since Saturday to resolve the problem, but the timeline for restoration of services remains unclear. While the company notified customers about the outage on Saturday morning, many expressed frustration over the delayed communication and lack of detailed updates.
Customer Impact and Reactions
Customers have voiced their concerns on social media and directly to news outlets. Many are worried about the impact on their financial obligations, such as paychecks, rent, and mortgage payments. Erykah Phillips, a business owner from Antioch, highlighted her frustration at being unable to access her account information or receive payments. Similarly, Mike Corpos from San Carlos expressed anxiety about whether he would be able to access his funds on payday.
Brian Samoulides of Walnut Creek shared his concerns about making his mortgage payment and criticized the lack of transparency from Patelco. He, like many others, suspects a cyber attack and calls for clearer communication from the credit union.
Patelco’s Response
Despite the outage, Patelco assured customers that they could still access cash withdrawals and deposits at specific ATMs within the credit union’s Co-Op network. The organization has over 30,000 shared branch ATMs . On Monday, Patelco’s branches will be open to assist customers during regular business hours, though longer wait times are anticipated.
Expert Insights
San Jose State Engineering Professor Ahmed Banafa, an expert in cybersecurity, commented on the severity of the incident, noting that the prolonged unavailability of online systems suggests that the credit union's network has been significantly compromised. Banafa advises customers to closely monitor their financial activities and change their passwords as a precaution.
Patelco's Status
Patelco is one of the oldest and largest credit unions in the state. The organization continues to work diligently to resolve the outage and restore normal operations.
As Patelco Credit Union deals with the aftermath of this serious security breach, customers are urged to stay informed and vigilant. The full extent of the incident's impact will become clearer in the coming days, and customers are advised to monitor their accounts closely and take necessary precautions to secure their financial information.
