Heritage South Credit Union in Alabama reported a significant data breach in February 2025, which compromised sensitive personal and financial information. The breach involved Social Security numbers, debit card numbers, and account details, among other personal data. The credit union first detected suspicious activity within its network on February 12, 2025, and a forensic investigation confirmed that an unauthorized third party had access to its systems from January 7 to February 17, 2025. To mitigate the impact on affected customers, Heritage South immediately notified those impacted and is offering two years of credit monitoring and identity theft protection through Experian.
The ransomware gang Embargo took responsibility for the attack, claiming it stole 300 GB of data from the credit union. Embargo posted what it says is the personal information of Heritage South’s CEO as evidence of the breach. The group demanded an undisclosed ransom payment by February 18, 2025, threatening to leak or sell the stolen data. However, Heritage South has not publicly confirmed whether the ransom was paid, the exact amount demanded, or how the attackers initially breached the network.
The credit union is continuing its investigation and working with cybersecurity experts and authorities.
Embargo is a relatively new and increasingly active ransomware group, operating under a ransomware-as-a-service model. The group has launched numerous attacks since its formation in 2024, with healthcare institutions being some of its primary targets. Notably, Embargo was responsible for breaches at Northbay Healthcare and Memorial Hospital & Manor in 2024, affecting hundreds of thousands of individuals. Heritage South’s breach marks Embargo’s first confirmed attack in 2025, and its growing activity is indicative of the rising threat posed by ransomware gangs in various sectors.
Ransomware attacks targeting financial institutions, such as Heritage South Credit Union, are becoming more frequent and increasingly severe.
These attacks can disrupt daily operations, lead to significant data loss, and expose customers to fraud. Similar breaches have affected other U.S. financial organizations in 2025, including Cross Valley Federal Credit Union, which was attacked in November 2024. Financial institutions must navigate the challenges of either paying a ransom or facing extended system downtimes while working to protect their customers from the growing menace of ransomware.
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