Ransomware Attack on Verdance Financial Disrupts Payroll, Business Transfers Across Quebec and Ontario

Montreal, Quebec —

A ransomware attack targeting Verdance Financial earlier this month paralyzed internal systems and disrupted payment operations across Quebec and Ontario, delaying payrolls, stalling business transfers, and throwing small enterprises into temporary financial disarray.

Verdance, one of Canada’s largest credit union networks, confirmed the breach stemmed from a phishing campaign that gave attackers access to back-office infrastructure. While customer-facing services like debit transactions and ATM withdrawals remained online, internal financial systems—including payroll, loan approvals, and supplier payments—were rendered inoperable for several days.

Business Operations Brought to a Standstill.

The fallout was immediate. Small businesses, independent contractors, and freelancers banking with Verdance were unable to send or receive payments, causing ripple effects across multiple sectors.

“I had to tell my staff they wouldn’t get paid on time,” said Marianne Gauthier, who runs a boutique marketing firm in Laval. “We rely on electronic transfers to keep everything moving—this locked us out entirely.”

Some freelancers reported missing project deadlines due to frozen deposits, while others faced penalties for late payments on contracts. Companies requiring urgent wire transfers to secure shipments or pay suppliers experienced severe cash flow constraints.

Slow Response Raises Concerns.

Verdance brought in cybersecurity firm Redfield Mandiant to assist in containment and recovery. Systems were gradually restored over the following days, but the credit union faced backlash over what critics called “slow and vague communication” in the critical early hours of the attack.

In a statement issued after services were restored, Verdance said it was investing $20 million in AI-powered threat detection tools and would accelerate its cybersecurity modernization plans.

A Broader Wake-Up Call;

The Canadian Credit Union Association (CCUA) responded by issuing updated guidelines urging financial institutions to:

Implement network segmentation to contain attacks
Run routine employee phishing simulations
Maintain offline backups of payment infrastructure

Cybersecurity experts say the incident highlights just how intertwined digital banking is with day-to-day commerce.

“When a payment network goes down, it doesn’t just affect the institution—it affects the economy,” said a CCUA spokesperson. “Wages, rent, contracts—it’s all connected.”

While Verdance has not confirmed whether a ransom was paid or disclosed the identity of the attackers, the event is already prompting credit unions across Canada to re-evaluate their internal defenses and contingency plans.

Following the risk behind the ROI. — Leila Park

ODTN News’ Ayaan Chowdhury contributed to this report.