Download this press release (PDF)
SACRAMENTO – The California Department of Financial Protection and Innovation (DFPI) announced today a consent order with San Francisco-based, Patelco Credit Union (Patelco) for cybersecurity violations. The consent order, which includes a $100,000 penalty, follows an investigation prompted by a June 2024 ransomware attack affecting Patelco’s approximately 500,000 members.
The ransomware attack caused essential computer functions at Patelco to shut down from June 29, 2024, to July 15, 2024, and disrupted services to Patelco’s members, including the inability to conduct any online banking functions. At that time, ransomware attackers were also able to access a significant number of members’ personally identifiable information (PII).
“Last summer’s cybersecurity breach at Patelco adversely affected hundreds of thousands of credit union members. They were locked out of their accounts for weeks and their personal information was compromised,” said Acting DFPI Commissioner KC Mohseni. “This Department is committed to holding accountable companies that do not adequately protect their customers’ data.”
Today’s order directs Patelco to correct failures in their cybersecurity programs to comply with state and federal cybersecurity requirements. The company is also ordered to retain an independent compliance consultant to oversee remediation, report to the DFPI on the company’s cybersecurity programs, and pay a penalty of $100,000.
The DFPI encourages those with information on cybersecurity program violations, unsafe or unsound business practices, or other violations of law involving a California-regulated financial institution to come forward by submitting a complaint with the Department online: dfpi.ca.gov/submit-a-complaint.
About the DFPI
The California Department of Financial Protection and Innovation protects consumers, regulates financial services, and fosters responsible innovation. The DFPI protects consumers by establishing and enforcing financial regulations that promote transparency and accountability. We empower all Californians to access a fair and equitable financial marketplace through education and preventing potential risks, fraud, and abuse. Learn more at dfpi.ca.gov.