Rising Cybersecurity Threats in a Cashless Society: A Closer Look

Editor’s Note: In today’s digital age, where convenience and speed are paramount, the risk of cybersecurity breaches continues to grow. This article sheds light on recent cyberattacks targeting prominent restaurant chains and financial institutions, underscoring the pressing need for robust security measures. For professionals in cybersecurity, information governance, and eDiscovery, understanding the intricacies of these breaches and the strategies employed to mitigate them is crucial. We delve into real-world incidents, expert insights, and actionable steps to fortify defenses, aiming to equip businesses with the knowledge to protect customer trust and secure their operations.

Industry News – Cybersecurity Beat

Rising Cybersecurity Threats in a Cashless Society: A Closer Look

ComplexDiscovery Staff

In an age where digital transactions dominate, the threat of cybersecurity breaches looms large. Recent incidents involving major corporations highlight the increasing risk that businesses face and the imperative to bolster their defenses against such threats.

Over the past few years, several prominent restaurant chains, including Yum Brands, Panda Express, Five Guys, and Panera Bread, have fallen victim to cyberattacks. These breaches have significant implications, not only compromising customer data but also shaking the trust that patrons place in these beloved eateries. The Federal Bureau of Investigation (FBI) notes that cybersecurity threats, particularly those involving skimming, cost consumers and financial institutions over $1 billion annually.

A pertinent example is the Pennsylvania Station East Coast Subs security breach in 2012. Less than 34% of their franchise-owned restaurants were affected, but the incident prompted a complete overhaul of their payment processes and a public acknowledgment to maintain transparency with their customers. The Chief Operating Officer, Craig Dunaway, emphasized the importance of not panicking during such incidents and outlined a clear plan: contain the breach, notify authorities, investigate thoroughly, be transparent, and strengthen security measures. This approach not only mitigates immediate damage but also helps rebuild customer trust.

Ahmed Banafa, a cybersecurity expert and professor at San Jose State University, explains the mechanics of ATM skimming, a prevalent form of cybersecurity fraud. “We are becoming a cashless society, so we rely a lot on cards,” Banafa states. “Once they get that [card] information, within seconds they can make purchases, cash withdrawals, or sell [the card information] on the dark web.” This form of fraud typically involves overlay devices installed on ATM slots or checkout stations, which capture card information unbeknownst to users. Banafa underscores the ease with which these devices can be installed and the sophisticated methods, such as Bluetooth technology, used to transfer data swiftly.

In one stark illustration of the cyber threat landscape, a Northern California-based credit union, Patelco Credit Union, experienced a debilitating ransomware attack that forced it to shut down several critical functions. Erin Mendez, Patelco’s CEO, reassured members that “cybersecurity specialists have validated and greenlighted our core systems,” though normal operations have yet to resume. The attack, reported on June 29, led to the suspension of electronic transfers, balance inquiries, and card transactions. Mendez emphasizes the importance of using alternative payment methods like Venmo and PayPal during the outage and reassures members that necessary steps are being taken to rectify the situation. Jim Frazin, a financial expert, notes that despite the immediate disruptions, member assets remain safe.

The rising incidence of skimming is alarming. According to FICO, the number of compromised debit cards shot up by 96% from 2022 to 2023, with Virginia, Texas, New Jersey, Florida, and Colorado reporting significant increases. Non-bank ATMs, particularly those at gas stations and convenience stores, are frequent targets. Bannerf advises being cautious of unusual signs at ATM and checkout stations, such as bulky card slots or extraneous wires, and opting for secure third-party payment options when available.

While the digital shift in payments provides convenience, it equally necessitates robust security frameworks to protect consumers and businesses alike. Engaging with high-quality security technologies, regularly auditing systems, and educating employees on safe practices are foundational steps in this regard. As Erin Mendez wisely notes, addressing security immediately and transparently is key to maintaining customer trust amid such challenges.

News Sources

• Navigating Cybersecurity: Lessons From Restaurant Data Breaches
• What Is ATM Skimming? How to Protect Yourself
• Hacked Bay Area Patelco Credit Union says ‘your money is safe’
• Walgreens Feels The Pain As Retail Pharmacies Struggle
• Patelco Credit Union confirms outage linked to ransomware attack

Assisted by GAI and LLM Technologies

Additional Reading

• Prudential Financial’s Data Breach Impact Soars to Over 2.5 Million Customers
• Evolve Bank Cyberattack Exposes Sensitive Data, Impacts Fintech Partners Wise and Affirm

Source: ComplexDiscovery OÜ