Restaurants, even small establishments, are vulnerable to data breaches because of the large number of on-line credit card transactions they handle daily. Experts say that point-of-sale restaurant data breaches are the “single biggest” cyber threat to the restaurant sector, as they offer the most direct route to credit cards and financial gain. It’s estimated that the 54% of cyberattacks against small businesses are in the Accommodation and Food Services industry, with restaurants accounting for 95% of those businesses hacked.
You’ve Been Hacked. Now What?
The average cost per stolen record is $225, according to a report conducted by IBM Security and the Ponemon Institute. These costs are comprised of forensic expenses to determine the source of the restaurant data breach, notification costs, credit card monitoring, potential regulation and fines, business interruption as a result of the breach, crisis management expenses to help minimize the fallout from the breach and maintain consumer confidence, potential legal fees, and litigation from third parties impacted by the breach.
Having the Right Coverage is Key
Having the right coverage in place in the form of Cyber insurance is critical for your restaurant insureds. A Cyber policy will provide coverage for the various costs involved as well as a breach response team to help clients in the aftermath of the breach.
Illustrating the Costs Involved with Restaurant Data Breaches
Distinguished Programs and ProHostUSA have put together an infographic, “You’ve Been Hacked. Now What?” illustrating the high risk of a restaurant data breach and the costs involved. You can also download the Cyber application to secure coverage for your clients.