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Zaxby Restaurant Data Breach Hits 10 States

January 25, 2013

Zaxby's Franchising says the recent data breach of its computer and point-of-sale systems has affected 108 Zaxby's restaurant locations in 10 southern states.

Zaxby’s Franchising says the recent data breach of its computer and point-of-sale systems has affected 108 Zaxby’s restaurant locations in 10 southern states. The breach, which has so far not resulted in the exposure of customer card data, was discovered during an internal forensics investigation that was launched after fraudulent activity was found on several payment cards that had all been used at several Zaxby’s locations. That investigation led to discovery of malware and other suspicious files designed to transmit and store payment card information on computer systems at several Zaxby’s restaurants. Zaxby’s says it is not certain how the computer systems were infected by malware, although it believes the malware did not spread through a common network. Gartner analyst Avivah Litan says the breach was likely the result of a localized malware attack in which cached files stored locally may have been exposed. She says the incident underscores the fact that even systems that are compliant with the PCI Data Security Standard are at risk of suffering data security breaches.

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