Wisconsin mac & cheese, buttered noodles and data breaches? These three items might not seem related, but all of these things are just like the others.
According to a recent report by Brian Krebs, Noodles & Company is investigating a potential data breach. Multiple banks have reported that there has been a pattern of fraudulent charges from customers who made purchases at Noodles.
There hasn’t been any indication about the size of the data breach, but anyone who has dined at Noodles in 2016 should check if their card has been used for fraudulent charges.
Data breaches at restaurants aren’t new. They have occurred at Wendy’s and P.F. Chang’s to name a few. If there is indeed a continuing trend of breaches, how can other restaurants insure themselves against future data breaches? Is the answer cybersecurity insurance?
In a recent case in the U.S. District Court for the District of Arizona, P.F. Chang’s was unable to convince the court that its insurance policy covered fraud assessments from banks. The court stated that P.F. Chang’s could have bargained for this type of coverage, but didn’t when it made the initial insurance contract. However, the insurance can cover claims made by parties who suffered a “privacy injury,” the court said.
The takeaway of the P.F. Chang’s case is simple: Make sure to bargain for a robust cybersecurity insurance policy that covers not just actual injury, but any related costs to the breach.
To keep up with the constantly evolving world of privacy and security sign up for the Bloomberg BNA Privacy and Security Update.
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