Patelco Credit Union (“Patelco”) recently reported a significant data breach incident impacting 726,000 Patelco customers.  Initially, Patelco reported a security incident and ransomware attack on June 29, 2024, that led to a shutdown of day to day banking systems, including online banking, mobile app, and the call center for nearly two weeks.  Following an internal investigation, Patelco later confirmed that the personal information of 726,000 members was stolen by a threat actor as a result of the attack and that an unauthorized party had gained access to its network as early as May 23, 2024. Patelco reported further that the information exposed included full names, Social Security numbers, driver’s license numbers, dates of birth, and email addresses.  The group that claimed responsibility for the attack, a group called “RansomHub,” claimed that negotiations with Patelco failed after two weeks, leading them to publish all of the stolen personal data on their extortion portal on August 15, 2024.

Labaton is investigating the pursuit of private arbitration claims against Patelco on behalf of Patelco members whose personal information was exposed as a result of this breach.  Successful claims could be entitled to compensation of up to $750 under California privacy laws.