Wendys Co (NASDAQ:WEN) has opened investigations over claims that a recent data breach could have left many cardholders vulnerable to attacks. It is alleged that a possible data breach could have presented fraudsters with an opening to go on a spending spree using other people’s accounts.
Wendy’s Data Breach
KrebsOnSecurity raised the alarm on discovering a pattern of fraud on some of the cards used at Wendy’s locations. The fast food chain has already received complaints from payment industry contacts on discovering unusual activity on payment cards.
Wendys Co (NASDAQ:WEN) has since sought the help of retail security and cybersecurity experts as well as law enforcement officials as it looks to sort the issues once and for all. It is still unknown the number of cards that could have been breached or restaurant locations that may have been affected.
“Until this investigation is completed, it is difficult to determine with certainty the nature or scope of any potential incident,” the company said.
The company has advised customers to be watchful of unauthorized charges on their cards as an investigation into the matter continues. Customers who have used their credit or debit cards at Wendys Co (NASDAQ:WEN) over the past few weeks are also being encouraged to report if they notice any form of unusual billing in their cards.
Data Security Challenge
Data security is a big challenge for consumer facing companies with those operating franchise models the most vulnerable. The fact that security measures deployed in different locations differ tends to make it difficult to ascertain the legitimacy of some transactions. Wendy’s boasts of more than 6,500 franchised and company-owned restaurants across the country.
Data Breach at Wendys Co (NASDAQ:WEN) won’t be the first of its kind in an age where hackers are in constant pursuit of crucial information for propagating attacks. Last year, Target Corporation (NYSE:TGT) reimbursed financial institutions as much as $67 million for costs incurred in its high profile 2013 data breach. The breach went on to dent the retailer’s reputation with shoppers, seen by sales tanking in the aftermath.
