Dishing Up C
AS CYBER CRIMINALS FOCUS ON SMALL AND MID-SIZED
BUSINESSES WITH LESS NETWORK SECURITIES IN PLACE,
RESTAURANTS HAVE BECOME A GROWING TARGET FOR CYBER CRIME.
LEARN HOW TO PROTECT YOUR RESTAURANT CUSTOMERS.
The headlines never seem to change: Cyber crime is on the rise globally. At a semi- nar held at the University of Washington’s Law School in early October, FBI and Secret Service agents
reported that cyber crime is becoming
more professional and in many ways, easier to commit. Among the reasons is that
cyber criminals have become more effective at using the Internet to organize and
form cyber “gangs” that include individuals
with different areas of expertise. Operating
as a skilled underground team, criminals
are more effective and are capable of
launching sophisticated attacks, silently
spreading their malware to thousands of
websites to run scams and infiltrate computer networks to access personal information of thousands of people.
These cyber criminals are now focusing on small and mid-sized businesses
that do not have the same protections in
place for network security as large corporations. Restaurants are among those
businesses under attack. CNBC reported
last April that 40 percent of breaches in
2010 occurred in the hospitality industry.
Point-of-sale terminals have been a primary target for cyber criminals engaging
in credit card fraud and resulted in the
compromise of millions of credit and debit
cards. With more restaurants embracing
social media and mobile devices as part of
By HEIDI A. STROMMEN
their business plan, the exposure to potential cyber crime only increases.
Restaurants have a three-point list to
protect themselves against losses related
to cyber crime:
➊;Take steps to prevent a cyber attack
➋ Insure against losses to the greatest
➌ Prepare a crisis management plan
that can be quickly implemented in the
event of a breach.
A qualified cyber security professional
will assist a business by advising on the
implementation of best practices related
to information security and safe computing. A comprehensive cyber insurance
program will include important coverages as well as crisis management services
that will go a long way toward addressing
both items two and three.
ASSESSING CYBER RISK
Restaurants that regard cyber risk coverage
as optional may not be accurately assessing
their potential uninsured exposures. Most
restaurants have websites, point-of-sale ter-
minals and computers networks that store
employee and frequent customer informa-
tion, and are key to business operations.
Increasingly, restaurants are using social
media like Facebook and Twitter to reach
customers, which further increases cyber
exposure. The cost of cyber liability losses
can add up quickly. For example, the fifth
annual “U.S. Cost of Data Breach Study”
conducted by the Ponemon Institute found
that data breach incidents cost U.S. compa-
nies an average of $204 per compromised
customer record in 2009 with the cost con-
tinuing to rise each year.
More on the Web:
A Growing Appetite
Hospitality Risks: More Than
Meets the Eye
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