February 21, 2024
Cyber Attack Affects More Than 60 Credit Unions in the U.S

A ransomware attack on a technology provider affected more than 60 credit unions in the United States, causing disruptions.

According to the National Credit Union Association, one of Trellance’s cloud computing units was impacted by the attack.

Due to a ransomware attack on Trellance, the credit unions’ IT provider, about 60 credit unions in the US are experiencing disruptions. The National Credit Union Administration (NCUA), which is in charge of guaranteeing deposits made at these establishments, declared that it was working with the unions that were impacted.

This is just one of several ransomware attacks that have been occurring across the country in recent months that have affected vital infrastructure. Thus far, these attacks have drawn the attention of federal law enforcement agencies and impacted payment systems, fuel pipelines, healthcare facilities, and schools.

An attack using ransomware disrupts credit unions, according to a federal agency

A ransomware attack on an IT provider used by approximately 60 credit unions in the US is causing outages, according to a federal agency’s statement on Friday.

After learning of the hack, the National Credit Union Administration (NCUA), which insures deposits at credit unions with federal insurance, told CNN in a statement that it was “coordinating with affected credit unions.”

There was uncertainty on Friday night regarding the entire scope of the outage and how it affected credit unions. Mountain Valley Federal Credit Union, a credit union located in New York, stated that technicians from the compromised IT provider were “working around the clock to get our systems” back online.

According to credit unions, a ransomware attack targeted a unit of Trellance, a cloud computing service provider, effectively cutting off the credit unions’ supply chains and causing disruptions to online and mobile banking. The extent of the incident has not yet been confirmed by Trellance.

According to security researchers, the attack was carried out using the CitrixBleed vulnerability (CVE-2023-4966) on an unpatched Cisco NetScaler device.

The source of the ransomware attack was found to be FedComp, a third-party vendor that used Trellance software, according to the NCUA. The National Credit Union Share Insurance Fund insured credit union deposits up to $250,000, according to the NCUA.

According to credit unions, Trellance, a cloud computing company that the credit unions use, was hit by a ransomware attack. In ransomware attacks, cybercriminals usually lock down computer systems as a form of extortion. NCUA spokesperson Joseph Adamoli made this announcement in a statement to CNN.

In a statement released on Saturday, Ongoing Operations, the company owned by Trellance, stated that the cybersecurity incident had been “isolated to a segment” of its network. “Once we confirm the extent of the incident, we will notify the affected individuals.”

This is only the most recent illustration of how ransomware attacks have wreaked havoc on vital US infrastructure in recent years. The file-locking cyberattacks have also affected schools, hospitals, and fuel pipelines, leading the Biden administration to declare ransomware a national security emergency.

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