Tens of thousands of customers of Bay Area credit union Patelco are still grappling with the fallout from a devastating ransomware attack that has left them without access to their accounts. The 88-year-old financial institution was hit by the attack on June 29, prompting the credit union to take drastic measures to contain the damage and address the issue.

As Patelco works tirelessly to restore its affected systems, CEO Erin Mendez revealed in a July 2 update that the credit union is collaborating with third-party cybersecurity experts to expedite the restoration process. However, customers may experience intermittent outages at Patelco’s ATMs as the restoration efforts continue. Mendez assured customers that access to shared ATMs will not be interrupted, allowing them to continue with essential cash withdrawals and deposits.

With $9 billion in assets and a customer base of 450,000 members nationwide, Patelco stands as one of the larger federal insured credit unions in the US. While its primary focus is on serving communities in the Bay Area, San Jose, and Sacramento, Patelco also caters to employees of over 1,100 businesses across the country.

The ransomware attack targeted Patelco’s online banking systems, as well as the systems supporting its mobile app services and call center. This left customers unable to carry out core electronic transactions such as direct deposits, transfers, balance inquiries, and payments. Patelco’s dedicated teams are working around the clock with leading cybersecurity experts to assess the situation and restore services. Unfortunately, the credit union is unable to provide an estimated time for when the systems will be fully operational again.

The ordeal faced by Patelco and its customers is not uncommon in the face of major ransomware attacks. Statistics from various sources indicate that the average downtime following a ransomware attack can range from 21 to 24 days. This marks a slight improvement from previous years when victims took an average of one month to recover from such attacks. The recovery process involves rebuilding systems, addressing security vulnerabilities, and rebuilding stakeholder trust, with the duration varying depending on the attack’s complexity and the organization’s readiness.

Smaller organizations like Patelco often bear the brunt of cyber-extortion attacks compared to larger, better-resourced entities. A recent study by Orange Cyberdefense revealed that organizations with fewer than 1,000 employees are four times more likely to experience such attacks. The prevalence of attacks against smaller organizations can be attributed to the fact that there are significantly more small businesses than large corporations.

Furthermore, ransomware actors are increasingly resorting to data theft to extort victims. The UK National Cyber Security Centre has warned that victims should assume their data has been stolen, with sensitive information potentially at risk of exposure. Recent incidents, such as the attack on Evolve Bank & Trust by the LockBit ransomware group, highlight the growing trend of threat actors exfiltrating data from victims to leverage ransom demands.

As Patelco navigates through the aftermath of the ransomware attack, the identity of the perpetrators remains undisclosed, with no group claiming responsibility for the incident. The credit union faces the looming threat of potential data leaks, raising concerns about the compromise of sensitive customer information. The path to recovery for Patelco and its customers will require resilience, vigilance, and a proactive approach to cybersecurity in an increasingly volatile digital landscape.

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