Patelco Failing Amid Financial Crisis and Cyberattack

Patelco, a credit union serving the Bay Area, is facing severe financial difficulties due to a combination of factors.

The credit union reported a net loss of $23.4 million in 2022, with its total assets shrinking by $123 million.

A cyberattack in 2021 further exacerbated Patelco's financial woes, resulting in significant costs for recovery and mitigation.

The credit union's financial struggles have led to a decline in its membership, with over 100,000 members leaving in the past year alone.

The credit union's financial issues began to surface in 2018, when it reported a net loss of $44 million.

Patelco's membership had been declining steadily since 2015, with a loss of over 100,000 members in just three years.

The credit union's net worth ratio had fallen to 8.9% in 2018, below the regulatory threshold of 7%.

Patelco's loan-to-share ratio had increased significantly, reaching 118.8% in 2018, indicating a high level of risk.

The credit union's delinquency rate had also increased, with 1.4% of outstanding loans 30 days or more past due in 2018.

Patelco's management had been criticized for its handling of the financial issues, with some calling for the ouster of the credit union's CEO.

A ransomware attack on Patelco's systems led to significant consequences, including the disruption of critical services. Patelco's members were unable to access online banking, mobile banking, and other digital services.

The attack caused a major outage, with Patelco's website and mobile app being taken offline. Patelco's systems were inaccessible for several days.

Patelco's members experienced financial losses due to the outage, with some unable to access their accounts or make payments. The exact amount of financial losses is not specified in the article.

Patelco's failure to prevent the attack and subsequent outage led to a loss of trust among its members. Patelco's reputation was severely damaged, with many members questioning the credit union's ability to protect their sensitive information.

The attack also highlighted the need for credit unions to invest in robust cybersecurity measures. Patelco's failure to do so led to a significant breach of security.

Discover more: What Happened to Patelco Credit Union Today

Customers of Patelco Credit Union were left unable to access much of their money in their accounts due to a security breach.

The breach, caused by a ransomware attack, forced the credit union to shut down its online banking and mobile app functions.

Customers could not make payments, receive funds through direct deposit, or transfer money.

They could, however, access cash from ATMs, but it's unclear if there's a limit to what they can withdraw.

Patelco's vice president of marketing, Rina Johnson, assured customers that the team and third-party partners are working around the clock to get back up and running.