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Applebee’s Hit by POS Malware, Compromising Customer Data

By PaymentsJournal
March 6, 2018
in News
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Technology High on the Menu For Quick Service and Fast Casual Restaurants, Applebee’s POS malware attack, U.S. table-side card payments

Technology High on the Menu For Quick Service and Fast Casual Restaurants

Applebee’s restaurants have been targeted by a point-of-sale (POS) malware attack, compromising customer payment information at several of its locations. The breach was linked to malware installed on POS systems, which collected sensitive payment card data, including card numbers, expiration dates, and verification codes. This incident adds to the growing list of retailers affected by similar attacks, highlighting the persistent vulnerabilities in POS systems and the ongoing threat of cybercrime in the retail sector.

Applebee’s parent company, RMH Franchise Holdings, confirmed the breach, noting that the malware was active over several months and impacted multiple restaurants across the U.S. The company has since removed the malware and is working with law enforcement and cybersecurity experts to investigate and mitigate the damage.

Impact of the Malware Attack

The POS malware attack at Applebee’s compromised payment card data from customers who dined at certain locations during the affected period. Stolen information could potentially be used for fraudulent transactions, leaving customers vulnerable to identity theft and unauthorized charges. RMH Franchise Holdings urged affected customers to monitor their bank statements and report any suspicious activity to their card issuers.

Key points of the incident include:

  • Malware on POS systems: The malware targeted POS terminals, capturing payment card data during transactions.
  • Prolonged exposure: The malware was active for several months before being discovered, increasing the number of potentially affected customers.
  • Customer risk: Stolen payment card information could be used for fraudulent purchases, putting customers at risk of financial loss.

POS Malware and Its Threat to Retailers

POS malware has become a common attack vector for cybercriminals targeting retailers. By infecting POS systems, hackers can steal payment data from customers in real-time, often going undetected for extended periods. These attacks can have serious consequences for businesses, including reputational damage, legal liability, and significant financial losses from customer lawsuits and fraud.

To protect against POS malware, businesses need to adopt stronger security measures, such as encryption, tokenization, and regular system updates. Training employees to recognize potential cybersecurity threats and responding quickly to breaches can also help minimize the damage caused by such attacks.

Steps Applebee’s Is Taking

In response to the breach, RMH Franchise Holdings has implemented several measures to improve its cybersecurity and protect customer data. These include:

  • Removing malware: The affected POS systems have been cleaned of malware, and additional security measures have been put in place to prevent future incidents.
  • Working with law enforcement: Applebee’s is cooperating with law enforcement agencies and cybersecurity experts to investigate the breach and track down the attackers.
  • Customer notification: The company has notified affected customers and provided guidance on how to protect their financial information.

The POS malware attack on Applebee’s underscores the importance of robust cybersecurity measures in the retail industry. As cybercriminals continue to target POS systems, businesses must remain vigilant and proactive in protecting customer data. By addressing vulnerabilities and improving security protocols, retailers can reduce the risk of future breaches and protect both their customers and their reputation.

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Tags: MalwarePoint of Sale

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