At least 1,025 Wendy’s locations were hit by a malware-driven credit card breach that began in the fall of 2015, the nationwide fast-food chain said Thursday. The announcement marks a significant expansion in a data breach that is costing banks and credit unions plenty: Previously, Wendy’s had said the breach impacted fewer than 300 locations.
On January 27, 2016, this publication was the first to report that Wendy’s was investigating a card breach. In mid-May, the company announced in its first quarter financial statement that the fraud impacted just five percent of stores. But in a statement last month, Wendy’s warned that its estimates about the size and scope of the breach were about to get much meatier.
Wendy’s has published a page that breaks down the breached restaurant locations by state.
Wendy’s is placing blame for the breach on an unnamed third-party that serves franchised Wendy’s locations, saying that a “service provider” that had remote access to the compromised cash registers got hacked.
For better or worse, countless restaurant franchises outsource the management and upkeep of their point-of-sale systems to third party providers, most of whom use remote administration tools to access and manage the systems remotely over the Internet.
Unsurprisingly, the attackers have focused on hacking the third-party providers and have had much success with this tactic. Very often, the hackers just guess at the usernames and passwords needed to remotely access point-of-sale devices. But as more POS vendors start to tighten up on that front, the criminals are shifting their focus to social engineering attacks — that is, manipulating employees at the targeted organization into opening the backdoor for the attackers.
As detailed in Slicing Into a Point-of-Sale Botnet, hackers responsible for stealing millions of customer credit card numbers from pizza chain Cici’s Pizza used social engineering attacks to trick employees at third party point-of-sale providers into installing malicious software. Continue reading →