Patelco Online Banking Update: Lawsuit Filed

The facade of Patelco Credit Union with sign and logo in Dublin, California, July 23, 2018. (Photo: Smith Collection/Gado/Getty Images)

(KRON) — Disruptions to online banking and other services for Patelco customers continue — more than a week after the Dublin credit union announced it had been hit by a ransomware attack. Now, a class action lawsuit has been filed against Patelco.

The lawsuit, filed by Oakland employment law firm Cole & Van Note, claims the data breach resulted in the hacking of sensitive personal information about customers. The lawsuit also accuses Patelco of “recklessly failing to secure its systems and email servers to prevent the breach of such sensitive data.”

The lawsuit also alleged that Patelco failed to notify customers in time to take corrective action.

“Our class action sought damages for all victims of this breach,” the lawsuit reads, “not least of which was the potential years of effort many affected individuals will undoubtedly expend to determine the full impact of this breach on their privacy and/or creditworthiness.”

In an update posted to its website Sunday, CEO Erin Mendez said Patelco “worked tirelessly all weekend” to “expedite repair efforts” and resolve the issue for members “as quickly and safely as possible.” Members’ money is “safe and secure,” the update said. However, the organization is still working to get its systems fully functional.

“I know I’ve told you this before, but restoring our systems while ensuring their future security will take careful and methodical work. I know this may not happen as quickly as you would like, but please know that we are working as quickly as we can, and we know how critical this is for our members,” Mendez said.

The credit union’s network has been stabilized and transactions have been processed, according to Mendez. However, customers still cannot access their account balances and bills normally. Mendez did not provide a timeline for when full service will be restored.