The long wait is almost over for over 500,000 anxious Patelco Credit Union customers who have been unable to view their account balances following a ransomware attack on the bank last June 29.
Over the weekend, the Bay Area-based bank and one of the nation’s largest credit unions announced customers will finally have access to their mobile and online banking starting Monday, July 15.
“On Monday, July 15, you will have access to online banking and the Patelco Mobile App. Our branches and contact center will also be able to support your requests,” said Erin Mendez, president and CEO of Patelco. “We have restored most functionality and the services most used by our members. We recognize that there is still progress to be made for a full recovery and, while this may not be perfect, we are grateful to be able to support you with your banking needs again”
A ransomware attack is a type of malware attack where hackers encrypt or lock sensitive data, in which the attacker would then demand payment or something in exchange to unlock it.
The latest services to be restored include online and mobile banking, balance inquiries, transaction histories, Zelle, and online bill pay.
Wire transfers, skip payment, and certificate account services are available via branch or call center transaction online.
Still unavailable are electronic statements, opening new accounts, new loans, balance transfers, and credit card balance transfers, among other services.
The cyberattack unnerved thousands of customers of the well-trusted credit union, who bombarded Patelco’s social media pages demanding answers, as each day went by with little information as to when their full services would be restored, and how much of their personal data was compromised.
Anjani Byrd was among the bank clients who has been paying his obligations without knowing exactly how much money was left in his account. So news of the restoration of services could not come soon enough.
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“It’s really concerning. And it seems that they’re being really vague about details and updates,” said Byrd, a San Jose State engineering technology student and Patelco client. “It’s all kind of general stuff, and not related to how they can combat this.”
It is still unclear if customers’ private information was stolen or compromised in the ransomware attack, and how much of the company’s more than $9 billion in assets were affected by the attack. At least one unhappy client has already filed a lawsuit against the bank for allegedly failing to protect customer data.
“I would say when it first happened, I pretty much downplayed it because I thought it was normal maintenance,” Byrd said. “It seemed completely normal. And then a day went by and it became concerning.”
Byrd said that he is putting an app development project on hold because of how the bank handled the aftermath of the data breach.
“The fact of not being able to see my balance kind of left us in the dark because I’m not able to wholeheartedly pay my developer what they need to complete my app,” he said.
Patelco is Byrd’s main bank account for most transactions including paying his car note, his bills, tuition, among other obligations.
Byrd said now he is considering moving all his funds into his other secondary account he keeps with Navy Federal Credit Union.
“I have a next invoice that’s due, but I’ve been wary to pay it because I’m kind of scared. I don’t know what my accounts are looking like right now,” Byrd said. “I’m just kind of blindly paying (bills) without being able to track my finances and just hoping things go through. It’s kind of unsafe and scary to live like that for a week.”
Since the attack, Patelco has promised to waive late and overdraft fees for customers with loan accounts and to reimburse those who were charged late fees by other institutions due to payment processing issues. The bank has also vowed to write letters on behalf of clients to credit bureaus to address any negative or derogatory marks.
But still, for clients like Byrd, these actions have been insufficient in addressing their concerns.
“It’s kind of disheartening and a relationship ruined. Being a college student, you’re not rich or anything…When your main bank is down, you’re dead broke,” Byrd said. “I just hope for the best, that we can get our money as soon as possible. But it’s really devastating. Nobody really plans for anything like this, especially college kids. And there’s really no outlet that you have as far as second plans.”
For more information and updates on Patelco’s security breach and services available, visit their website.
