Hometown Deli & Bakery
Suburban small business, deli sandwiches, baked goods, 10 staff, online orders, loyalty program.
Background
Hometown Deli & Bakery is a small business located in a suburban town. They specialize in deli sandwiches and baked goods. With a staff of 10, they started accepting online orders through their website, and they also manage a loyalty program where customers can earn points for their purchases.
The Breach
One morning, several loyal customers called to report suspicious charges on their credit cards. All mentioned using their cards on the Deli’s website recently. Further investigation revealed that the website had been compromised, and card details of over 500 customers who had made purchases in the past month were stolen.
Cause
Upon consultation with an IT expert, it was discovered that the website’s e-commerce platform had vulnerabilities. The business owner had set up the website using an out-of-date e-commerce plugin, which had known security vulnerabilities. Criminals exploited these vulnerabilities to inject malicious code, which then captured and transmitted the credit card details of customers to a remote server.
Impact
Financial Impact
The small business faced potential fines for not complying with Payment Card Industry Data Security Standard (PCI DSS) standards. They also had to bear the costs of forensic investigation and offering credit monitoring services to affected customers.
Reputational Impact
Word spread quickly in the local community about the breach. Trust was eroded, and several loyal customers hesitated to make purchases, especially online.
Operational Impact
The online ordering system had to be temporarily shut down until the issue was fixed, causing a dip in sales.
Response
Notification
The owner promptly informed all customers about the breach, advised them to check their bank statements, and offered a year of free credit monitoring.
Security Upgrades
Hometown Deli & Bakery invested in a more secure e-commerce solution and also organized cybersecurity awareness training for all staff members.
Technical Fixes
The e-commerce platform was updated, and all known vulnerabilities were patched.
Public Relations
To regain customer trust, the owner offered discounts to affected customers and assured them of enhanced security measures.
Lessons and Takeaways
- Stay Updated: Small businesses must regularly update their software and systems to protect against known vulnerabilities.