Restaurants face fines, penalties, legal action and reputational damage costs.
Restaurant owners large and small currently hesitant to purchase cyber security insurance need to reconsider their decision. According to an FBI release dated May 23, 2017, thirteen street gang members were arrested in a bank fraud scheme involving “skimmed” credit cards. The credit cards were skimmed at a restaurant in Huntington Beach California. Over 500 credit cards were compromised and caused losses exceeding $500,000 for card issuing banks.Restaurant employees planted skimming devices to steal customer account information from patron credit cards. Gang members purchased skimmers and loaded the information onto cards with magnetic strips, such as gift cards, which were then used at retail stores. The gang resold many of the purchased items using the proceeds for drug transactions.
In addition to reputational damage, restaurants faced penalties, fines and reimbursement and reissuance expenses from credit card issuers. Property, general liability and crime insurance policies exclude such losses.
Restaurants face a 3% chance of incurring a fire loss but over a 60% chance of getting hacked in some fashion. Cyber insurance takes minutes to quote and costs a fraction of your fire insurance policy. Contact Tagrisk Insurance Services for a cyber quote today!