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Credit card breach lands franchise in court

June 2, 2012

A major security breach put a major hamburger chain's customers at risk of having data hacked and is being sued as a result.

A major security breach put a major hamburger chain’s customers at risk of having data hacked and is being sued as a result.

Courthouse News Service reports Five Guys restaurants had the information regarding debit card information stolen. According to Trustco Bank, the thieves have so far made $89,800 in charges from diners who ate at New York locations including Schenectady, Warren and Saratoga counties. As a result of the incident, the bank is suing the franchise’s locationswhere the hacking took place.

The source reports that Trusco first noticed the unusual activity after it processed more than 376 unauthorized transactions during November and December 2011.

“Over time, it became apparent that the customers of plaintiff affected by fraud had transactions at various Five Guys locations in common,” the bank’s complaint states, according to the news provider.

Perhaps the most effective way for merchants to prevent this type of thing from happening is to meet the requirements of the payment card industry data security standards. PCI Compliance ensures that card user information is better protected from hackers.

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