Posts Tagged: C&K Systems

Mar 15

Point-of-Sale Vendor NEXTEP Probes Breach

NEXTEP Systems, a Troy, Mich.-based vendor of point-of-sale solutions for restaurants, corporate cafeterias, casinos, airports and other food service venues, was recently notified by law enforcement that some of its customer locations have been compromised in a potentially wide-ranging credit card breach, KrebsOnSecurity has learned.

nextepThe acknowledgement came in response to reports by sources in the financial industry who spotted a pattern of fraud on credit cards all recently used at one of NEXTEP’S biggest customers: Zoup, a chain of some 75 soup eateries spread across the northern half of the United States and Canada.

Last week, KrebsOnSecurity reached out to Zoup after hearing from financial industry sources about fraud patterns indicating some sort of card compromise at many Zoup locations. Zoup CEO Eric Ersher referred calls to NEXTEP, saying that NEXTEP was recently informed of a security issue with its point-of-sale devices. Ersher said Zoup runs NEXTEP’s point-of-sale devices across its entire chain of stores.

In an emailed statement, NEXTEP President Tommy Woycik confirmed Ersher’s account, but emphasized that the company does not believe all of its customers are impacted.

“NEXTEP was recently notified by law enforcement that the security of the systems at some of our customer locations may have been compromised,” Woycik wrote. “NEXTEP immediately launched an investigation in cooperation with law enforcement and data security experts we retained to determine the root cause and remediate the issue. We do know that this is NOT affecting all NEXTEP customers, and we have been working with our customers to ensure that any issues are addressed.  This remains an ongoing investigation with law enforcement. At this stage, we are not certain of the extent of the breach, and are working around the clock to ensure a complete resolution.”

A breach at a point-of-sale vendor can impact a large number of organizations, and historically the chief victims of POS vendor breaches have been food service establishments. Last year, a pattern of credit card fraud at hundreds of Jimmy Johns sandwich shops across the country was traced back to security weaknesses that fraudsters were exploiting in point-of-sale systems produced by POS vendor Signature Systems Inc. Signature later disclosed that the breach also impacted at least 100 other independent restaurants that use its products. Continue reading →

Dec 14

Banks: Card Breach at Some Chick-fil-A’s

Sources at several U.S. financial institutions say they have traced a pattern of credit card fraud back to accounts that all were used at different Chick-fil-A fast food restaurants around the country. Chick-fil-A told KrebsOnSecurity that it has received similar reports and is working with IT security firms and law enforcement in an ongoing investigation.

Photo: Robert Du Bois

Photo: Robert Du Bois

KrebsOnSecurity first began hearing from banks about possible compromised payment systems at Chick-fil-A establishments in November, but the reports were spotty at best. Then, just before Christmas, one of the major credit card associations issued an alert to several financial institutions about a breach at an unnamed retailer that lasted between Dec. 2, 2013 and Sept. 30, 2014.

One financial institution that received that alert said the bank had nearly 9,000 customer cards listed in that alert, and that the only common point-of-purchase were Chick-fil-A locations.

“It’s crazy because 9,000 customer cards is more than the total number of cards we had impacted in the Target breach,” the banking source said, speaking on condition of anonymity.

The source said his institution saw Chick-fil-A locations across the country impacted, but that the bulk of the fraud seemed concentrated at locations in Georgia, Maryland, Pennsylvania, Texas and Virginia.

Reached for comment about the findings, Chick-fil-A issued the following statement:

“Chick-fil-A recently received reports of potential unusual activity involving payment cards used at a few of our restaurants.  We take our obligation to protect customer information seriously, and we are working with leading IT security firms, law enforcement and our payment industry contacts to determine all of the facts.”

“We want to assure our customers we are working hard to investigate these events and will share additional facts as we are able to do so.  If the investigation reveals that a breach has occurred, customers will not be liable for any fraudulent charges to their accounts — any fraudulent charges will be the responsibility of either Chick-fil-A or the bank that issued the card.  If our customers are impacted, we will arrange for free identity protection services, including credit monitoring.”

Continue reading →

Sep 14

Jimmy John’s Confirms Breach at 216 Stores

More than seven weeks after this publication broke the news of a possible credit card breach at nationwide sandwich chain Jimmy John’s, the company now confirms that a break-in at one of its payment vendors jeopardized customer credit and debit card information at 216 stores.

jjohns On July 31, KrebsOnSecurity reported that multiple banks were seeing a pattern of fraud on cards that were all recently used at Jimmy John’s locations around the country. That story noted that the company was working with authorities on an investigation, and that multiple Jimmy John’s stores contacted by this author said they ran point-of-sale systems made by Newtown, Pa.-based Signature Systems.

In a statement issued today, Champaign, Ill. based Jimmy John’s said customers’ credit and debit card data was compromised after an intruder stole login credentials from the company’s point-of-sale vendor and used these credentials to remotely access the point-of-sale systems at some corporate and franchised locations between June 16, 2014 and Sept. 5, 2014.

“Approximately 216 stores appear to have been affected by this event,” Jimmy John’s said in the statement. “Cards impacted by this event appear to be those swiped at the stores, and did not include those cards entered manually or online. The credit and debit card information at issue may include the card number and in some cases the cardholder’s name, verification code, and/or the card’s expiration date. Information entered online, such as customer address, email, and password, remains secure.”

The company has posted a listing on its Web site — — of the restaurant locations affected by the intrusion. There are more than 1,900 franchised Jimmy John’s locations across the United States, meaning this breach impacted roughly 11 percent of all stores. Continue reading →