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9/24/2014
04:35 PM
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Jimmy John's Gourmet Sandwiches POS Systems Hacked

Sandwich chain is the latest data breach victim, with credit and debit card data breached in 216 of its restaurants.

Count Jimmy John's as the latest data breach victim falling to a point-of-sale malware attack.

The sandwich chain today confirmed that 216 of its restaurants had been hit with an attack that began back in June, exposing its customers' credit and debit card information at those locations. The company said it hired third-party forensics experts to investigate a possible breach it first learned of on July 30.

According to Jimmy John's, the breach originated from stolen log-in credentials pilfered from its POS vendor, and encrypted POS swipe terminals have now been installed in stores.

The company said in a statement issued today:

While the investigation is ongoing, it appears that customers’ credit and debit card data was compromised after an intruder stole log-in credentials from Jimmy John’s point-of-sale vendor and used these stolen credentials to remotely access the point-of-sale systems at some corporate and franchised locations between June 16, 2014 and September 5, 2014. The security compromise has been contained, and customers can use their credit and debit cards securely at Jimmy John’s stores.

Only payment cards that were swiped into POS terminals at those stores were exposed, not cards that were entered online or manually. Among the information exposed: card account numbers, cardholder names, verification codes, and expiration dates.

"Jimmy John’s has taken steps to prevent this type of event from occurring in the future, including installing encrypted swipe machines, implementing system enhancements, and reviewing its policies and procedures for its third party vendors," the chain said.

The company says the malware has been removed from its network. It's offering identity protection services to affected customers. The list of affected restaurant locations is here.

Kelly Jackson Higgins is the Executive Editor of Dark Reading. She is an award-winning veteran technology and business journalist with more than two decades of experience in reporting and editing for various publications, including Network Computing, Secure Enterprise ... View Full Bio

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Some Consultant
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Some Consultant,
User Rank: Apprentice
9/25/2014 | 12:57:57 PM
Easier to wait for the incident and then pay
The way this works is the classic "show me the money" fashion. Security costs money and it is seen (until a breach happens) as an unneeded expense. Another common "modus operandi" we find here is to use a relaxed vendor to gain access to your infrastructure (do you remember Target?). It seems to me that paying with cash will become the way payment in America. 
Kelly Jackson Higgins
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Kelly Jackson Higgins,
User Rank: Strategist
9/25/2014 | 11:25:28 AM
Re: Once again..
Note that Jimmy John's response is that it now has installed encrypted POS terminals in the stores. 
aws0513
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aws0513,
User Rank: Ninja
9/25/2014 | 9:38:37 AM
Listing of stores is a good response tactic
As much as it saddens me to see another POS compromise victim, the way Jimmy Johns is responding to the compromise is commendable.  To provide a list of affected stores demonstrates a willingness to engage their customers even in the worst of situations. 
Of course, one would have to trust the provided list is accurate.
securityaffairs
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securityaffairs,
User Rank: Ninja
9/25/2014 | 6:53:17 AM
Once again..
Once again POS system exposed, security in retailer world is an optional and recent cases demonstrate it. It's time to completely change the approach to security to avoid a dramatic domino effect.

Such incidents expose users to financial losses, but also to identity theft risk and the worrying aspect is that in the majority of cases the data breached go undetected for months.
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