10 Online Security Questions For Restaurant Owners and Managers

Running a restaurant can feel like an adrenaline-fuelled race on a tightrope. That’s why the industry relies on technology to manage information.

POS systems are fully digital and cloud-based. So are payment platforms, customer loyalty programs, and online reservation systems. Marketing happens almost exclusively online via social media platforms and websites. Even stock control and logistics are digital.

That means restaurants handle vast amounts of sensitive information without realizing it. Unfortunately, hackers and scammers know what the data is worth. That makes restaurants targets for cyberattacks.

The Costly Consequences of Data Breaches in Restaurants

Data theft can include customers’ credit card information, contact details, and more. But it could also include proprietary information, prize-winning recipes, and other trade secrets.

• You or your customers may get fraudulent credit card transactions. You may not even notice a system breach unless your credit monitoring solution picks up an anomaly.
• Data breaches erode trust. If customers feel that you don’t treat their data with respect, they won’t return. If your customers suffer losses due to the breach, they might sue you for damages.
• Your data protection measures will be in the spotlight. Non-compliance with data protection laws will lead to penalties. You might also face legal action. If you have international customers, their data is protected by strict GDPR standards.
• If you suffer a ransomware attack, it could shut down your business until you pay up.

Ten Common Attack Methods in the Restaurant Industry

Offering free Wi-Fi has become standard for restaurants, but it poses a security risk. Unsecured public Wi-Fi can allow hackers a way in. Once they’re in your network, they can delete or copy your recipes, or encrypt your internal systems. They may also be able to access your customers’ devices. Hacked customer devices could lead to compensation claims.

• Man-in-the-Middle (MITM) attacks are commonplace. That’s when attackers intercept the data flow between a device and the internet. They can hijack the communication between your POS terminal and payment processor, unless you encrypt the connection.
• Many POS systems have built-in access for remote agents. They assist with troubleshooting or maintenance. If you don’t secure these connections well, attackers can use them to breach your system.
• POS systems are often outdated or misconfigured. Vendors regularly release security patches for vulnerabilities. These patches close security holes to prevent hackers from gaining access. If you don’t update when you should, the system becomes vulnerable.

Insider threats involve employees or contractors who have access to your POS system. They can sneakily attach a skimmer, install malware, or otherwise outwit security protocols:

• Hackers can install malware on POS terminals to steal magnetic stripe or chip information. Remember the 2013 Target breach? It made headlines because the breach was so large. In fact, it’s a fine example of how hackers regularly breach smaller retail and restaurant POS systems without anyone noticing.
• A card skimmer is a small device attached to a POS terminal or card reader. It captures card data so attackers can clone the card or sell the stolen information.
• Tampering involves altering the wiring of POS devices. It’s similar to skimming, but hackers physically manipulate the internal components.

And there are even more ways for attackers to infiltrate a restaurant’s system:

• Phishing scams arrive via email or messages. Attackers mimic legitimate businesses, such as banks or suppliers. These convincing messages can trick staff into sharing sensitive information.
• Disgruntled employees could expose your restaurant to data breaches. Staff who handle customer data negligently or share passwords can also cause a breach.
• Third parties, e.g., delivery services, reservation systems, or online ordering apps, may become attack vectors. If they get breached, the problem could cascade to impact your system too.
• Using simple passwords for different systems makes it easy for staff to get their jobs done. It also makes it easy for hackers to gain access to your system. Weak passwords are a common security lapse wherever people use digital systems.

Ten Steps to Better Restaurant Data Security

It’s a good idea to keep data protection measures as simple as possible. That can protect you from slipups by well-meaning but overworked staff during a dinner rush.

1. Use secure-by-design POS hardware and software. Look for a supplier that offers tamper-resistant hardware and attack-resistant software. Use PCI DSS-compliant payment processing.
2. Keep software updated. Apply updates to the POS software and hardware as soon as they become available.
3. Separate the guest network from your internal Wi-Fi network. Update router firmware regularly.
4. Encrypt all connections. Install a VPN (virtual private network) on your router to protect all your internet connections. The POS terminal should also use strong encryption. It’s an extra protection layer for the data traveling between the POS terminal and online payment processors.
5. Install a firewall on your router to protect your network. Use an antivirus solution to protect all devices against cyber threats.
6. If you allow your supplier or staff remote access to your network, make sure they use MFA (multi-factor authentication).
7. Train employees to handle data safely. They should also look out for suspicious activity, for example, attempts to tamper with POS terminals.
8. All staff should use strong passwords. They should never be allowed to share passwords or use the same one for different systems. Change passwords regularly. Subscribe to a dark web monitoring system to get alerts if passwords from your business appear.
9. Back up your data regularly to a cloud or off-site storage facility.
10. Choose a cybersecurity policy that covers data recovery and device replacement costs. It should also cover legal fees and cybercrime-related claims against your business. You may also need funds to cover business interruption costs.

The Restaurant Future is Digital

Data security may seem trivial, but it has become an important part of daily hospitality management. It’s a high-pressure industry; cybercriminals know where the weak points lie. Recognize the risks, plan for mishaps, and take preventive measures. Safeguarding customer data is one of the keys to earning customer trust.