Posts Tagged: Jimmy John’s breach

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.”

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Sep 14

Signature Systems Breach Expands

Signature Systems Inc., the point-of-sale vendor blamed for a credit and debit card breach involving some 216 Jimmy John’s sandwich shop locations, now says the breach also may have jeopardized customer card numbers at nearly 100 other independent restaurants across the country that use its products.

pdqEarlier this week, Champaign, Ill.-based Jimmy John’s confirmed suspicions first raised by this author on July 31, 2014: That hackers had installed card-stealing malware on cash registers at some of its store locations. Jimmy John’s said the intrusion — which lasted from June 16, 2014 to Sept. 5, 2014 — occurred when hackers compromised the username and password needed to remotely administer point-of-sale systems at 216 stores.

Those point-of-sale systems were produced by Newtown, Pa., based payment vendor Signature Systems. In a statement issued in the last 24 hours, Signature Systems released more information about the break-in, as well as a list of nearly 100 other stores — mostly small mom-and-pop eateries and pizza shops — that were compromised in the same attack.

“We have determined that an unauthorized person gained access to a user name and password that Signature Systems used to remotely access POS systems,” the company wrote. “The unauthorized person used that access to install malware designed to capture payment card data from cards that were swiped through terminals in certain restaurants. The malware was capable of capturing the cardholder’s name, card number, expiration date, and verification code from the magnetic stripe of the card.”

Meanwhile, there are questions about whether Signature’s core product — PDQ POS — met even the most basic security requirements set forth by the PCI Security Standards Council for point-of-sale payment systems. According to the council’s records, PDQ POS was not approved for new installations after Oct. 28, 2013. As a result, any Jimmy John’s stores and other affected restaurants that installed PDQ’s product after the Oct. 28, 2013 sunset date could be facing fines and other penalties.

This snapshot from the PCI Council shows that PDQ POS was not approved for new installations after Oct. 28, 2013.

This snapshot from the PCI Council shows that PDQ POS was not approved for new installations after Oct. 28, 2013.

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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 →