Ransomware Attack Disrupts Services for 60 US Credit Unions
In a significant cybersecurity incident, a ransomware attack targeting cloud IT provider Ongoing Operations has caused disruptions for approximately 60 credit unions across the United States. The affected credit unions, relying on Ongoing Operations for services, are now facing downtime, impacting their operations and member services.
The National Credit Union Administration (NCUA), responsible for overseeing and safeguarding these financial institutions, confirmed the ongoing situation. The NCUA spokesperson stated, "I can confirm that approximately 60 credit unions are currently experiencing a level of blackout due to a ransomware attack at a third-party service provider." It is reported that Ongoing Operations, owned by Trellance, fell victim to a sophisticated ransomware attack on November 26, 2023.
The cloud provider offers services ranging from disaster recovery solutions to remote virtual desktops and hosted applications.
The attack has caused widespread disruption, affecting credit unions across the nation. The compromised cloud provider informed its clients of the incident, stating that immediate action was taken upon discovery. Ongoing Operations emphasized ongoing investigations, the engagement of third-party experts, and cooperation with law enforcement to determine the nature and scope of the attack.
While the investigation is still underway, the cloud provider assured clients that there is no evidence of information misuse at this time. The incident has prompted heightened security measures, and Ongoing Operations is committed to providing updates on the situation.
One affected credit union, Mountain Valley Federal Credit Union, described the issue as a "nationwide" problem, emphasizing the extensive impact. Trellance and FedComp, another entity involved, are working tirelessly to restore systems for credit unions nationwide.
The NCUA has reported the incident to relevant authorities, including the US Department of the Treasury, the Cybersecurity and Infrastructure Security Agency (CISA), and the FBI.
This incident underscores the critical importance of robust cybersecurity measures in the financial sector, emphasizing the need for collaboration between financial institutions and third-party service providers to fortify defenses against evolving cyber threats.
Source: The Register | Jessica Lyons Hardcastle