Why Your Restaurant Needs Data Breach Protection

Why Your Restaurant Needs Data Breach Protection

Hackers are out there. According to the 2016 Data Breach Investigations Report, in 93% of cyber breaches, attackers take only a few minutes to compromise systems. Cyber and data breach protection is becoming more necessary for restaurants because once data such as credit card information is passed on, that restaurant is held responsible for that information. At H&K Insurance, we want to make sure your restaurant is safe from cyber-attacks. Contact us now to see how we can help you stay protected.

A Restaurant Without Data Breach Protection

With 980 cyber breaches occurring last year alone, being prepared for these attacks has never been more important. All it takes is one breach for a restaurant to lose revenue, reputation, and customer confidence. When patron data that is stored on a restaurants POS system is compromised, restaurants are responsible for:

  • Contacting every patron affected by the data breach.
  • Establishing affected patrons with credit monitoring.
  • Compensating all patrons who suffered financial loss because of the breach.

Not only do these breaches devastate a restaurants reputation, but they can cause thousands of dollars in revenue loss. Because 4 out of 5 victims of data breaches do not realize they have been attacked for a week or even longer, catching the hacker is almost impossible in most cases.

How Cyber Liability Coverage Helps Protect You

Cyber liability coverage is specifically designed to help save your restaurant from data breaches. This protection will cover most, if not all of the costs related to the breach and can also help address security weaknesses by upgrading and programing cyber security systems. According to Heimdal Security, 68% of funds lost in a cyber-attack will be unrecoverable. With the increase in cyber-attacks, it is essential that your restaurant is protected with cyber liability coverage.

Warning: Inside Jobs

One study showed that 59% of employees steal proprietary corporate data when they quit or are fired.  Data breaches are likely to come internally because of the level of access given and the possible motive for revenge if an employee is fired. There are a few types of insiders that are helpful to know about:

  • Exploited Insiders: These employees can be tricked or convinced by external parties to give out important data or passwords.
  • Careless Insiders: These employees can simply press a wrong button or accidently delete or modify critical information.
  • Malicious Insiders: These are the most targeted and devastating types of internal attacks and can result in significant revenue loss. Malicious insiders have full intention to steal and destroy and are likely to hurt your restaurant the most.

Cyber breaches heavily damage a restaurant and can happen in a number of different ways. Being prepared and making sure you have data breach protection can save your restaurant’s reputation and thousands of dollars in revenue loss.

If you would like to learn more about data breach protection and how this coverage can save your restaurant, contact H&K Insurance today and receive a free consultation for your restaurant.