The FTC recently approved a settlement with Dave & Buster’s, Inc., a restaurant and arcade chain, for the largest recorded data breach of private credit card information.
The hackers responsible for stealing credit card data from Dave & Buster’s gained access through an unsecured wireless Internet router, or wireless access point (WAP). The hackers had sought out businesses with no Internet security password and, after gaining access to the networks, had obtained credit card numbers and customer data in real time as the cards were swiped.
There is a growing trend for the FTC to seek civil damages for lax Internet security in order to encourage businesses to provide additional protective measures for online data, including wireless Internet routers. In addition to the monetary damages Dave & Buster’s will pay to settle the claim related to this data breach, the company will be required to maintain an information security program and to have its security systems professionally audited semi-annually.
Basic information security guidelines can help to prevent this type of breach. It is important to secure passwords, to enable firewall protection, and to institute additional, appropriate security safeguards to protect consumer information. This is especially important when dealing with sensitive financial data.