The rapid shift to online business has been a great challenge to most restaurants, but the transition to online business also means increased vulnerability to cyber-attacks.
During the pandemic many restaurants shifted to online orders for pick-up and delivery, connecting with customers virtually due to pandemic limitations to in-person dining and decreased foot traffic. Doing so has been essential to staying afloat, and customers have grown even more accustomed to conducting all sorts of transactions online.
According to research from Verizon, as many as 43% of all cyberattacks target small businesses. Though incidents at larger companies make headlines, data breaches impact small businesses at alarming rates. The restaurant industry faces a unique threat due to the amount of data collected from customers and the frequency of transactions both in front and back of the house.
Aside from thinking about how to increase sales, it is also crucial for restaurant owners to understand the risks of cyber security and how to protect their business from its potentially devastating impacts. The potential costs from cyber attacks can reach tens of thousands of dollars that may cause a restaurant's bankruptcy.
Read on for what you need to know and how to help safeguard your restaurant from falling victim to cyber-attacks.
Restaurants are vulnerable to cyber-attacks.
Hackers like to target different types of sensitive information, and target restaurants are full of them. The most common target is financial data, like customers' stored credit cards and personal information. Data on your employees could be targeted, too.
In a separate study, up to 62% of restaurant guests are connected about potential fraud in sharing their information. And they have reason to be because the volume of credit card transitions performed at the restaurants makes them an attractive target.
Types of cyberattacks that target restaurants
Cybersecurity threats constantly change as hackers respond to where businesses are most vulnerable. Here are the most types of attacks.
Malware
Malware is malicious software that infects your system and steals valuable data. This may happen through phishing, in which someone on your network is tricked into clicking a link that allows hackers access.
Ransomware
Ransomware attacks, in which outsiders access data and demand to be paid a ransom for its recovery. According to Verizon, this type of attack has increased by 13% since last year. Though the restaurant is the least impacted sector, they were also the most likely to pay up, with 62% of those affected doing so, according to research conducted by Hiscox.
Keylogging software
Keylogging is when the culprit traces everything you do on your computer, allowing them access t passwords and sensitive information.
Card testing
When hackers gain access to credit card details, they need to test which ones can be used. Card testing is when they target a website and make thousands of small purchases to see which cards are still active. Though the charges are small, the business costs can quickly add up.
How can restaurants protect themselves from cyber-attacks?
One of the most straightforward and essential steps is ensuring that your website, router, and online systems are fully protected. Install software updates and security patches as soon as they become available because they are likely urgent in protecting potential vulnerabilities.
According to Verizon, ensure your staff is on guard because 82% of data breaches involve a human element. Therefore, training employees on security best practices and how to spot threats is crucial to protecting your business.
Keep a close eye on your email and social media accounts, as hackers could "spoof" or copy your online presence to solicit personal information from customers. Make sure to change your passwords regularly and watch for activity on accounts you may use less often.
To help combat card testing, ensure that your payment gateway provider (if you're a Clover customer, that's us) has installed velocity controls on your eCommerce site. That means there's a limit set on the number of transactions your site accepts from a single IP address, which can help stop anyone from trying to run thousands of cards simultaneously.
What to do if your restaurant experiences a cyber attack
It's essential to have a plan in place if you fall victim to hackers, so you can keep your cool and do what's necessary. A good response plan should include the following:
Making sure employees let you know immediately if they suspect there's been a data breach.
Notifying credit card companies involved so you can protect customer data.
Notifying customers and explaining what you're doing to protect them.
Investigating what happened so you can prevent a similar occurrence in the future.
More about restaurants and cybersecurity
Learn more about what happens when a company experiences a data breach. And be sure to check out this brief guide on the most significant cybersecurity threats and how you can protect your business.
At eatOS, we're here to help you make your business run better and safer with our Point of Sale eco-system, get in touch today to Book a Demo.
