Chick-fil-A Reports Possible Data Breach

ATLANTA—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, according to security blogger Brian Krebs.

Chick-fil-A, on its website, also stated that it has received reports of potential unusual activity involving payment cards used at a few of its restaurants.

Chick-fil-A explained that it is working with IT security firms and law enforcement in an ongoing investigation, assuring customers that if the investigation reveals a breach has occurred, they won’t be liable for fraudulent charges. The company said it will also offer free identity protection services, including credit monitoring, if a breach has happened.

In a release following the Chick-fil-A announcement, NAFCU President and CEO Dan Berger stated that, “Unfortunately, 2014 has turned out to be the year of the data breach and now we have the latest report of yet another retail data breach. Congress must make passing a national data security standard for retailers a top priority when it returns next week. Congress should hold retailers subject to the same national data security standards that apply to financial institutions, such as the requirements of the Gramm-Leach-Bliley Act.”

NAFCU noted that one year after the Target data breach, the figures are astonishing:

  • According to NAFCU estimates, the Target data breach will cause financial institutions to lose nearly $500 million in card replacement costs and other expenses.
  • Since Target’s data breach, there has been a major data breach discovered almost every month, with breaches reported at Home Depot, Michaels stores, Sally Beauty Supply, Neiman Marcus, AOL, eBay, P.F. Chang’s Chinese Bistro, Supervalu, Dairy Queen, Jimmy Johns, Kmart, Staples and Bebe Stores.  
  • There have been 761 breaches that have occurred in 2014 thus far, according to the Identity Theft Resource Center – approximately a 25% increase from last year.

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