Dairy Queen Hacked By Same Malware That Hit Target
By Christine Kern, contributing writer
Company remains mum on breach details
Dairy Queen has become the latest major company hit by a data breach. According to KrebsOnSecurity, which first reported the story, financial institutions are dealing with a pattern of fraud from cards used at Dairy Queen in several states, including Alabama, Indiana, Illinois, Kentucky, Ohio, Tennessee, and Texas. A malware known as ‘Backoff’ – the same responsible for the major Target data breach – was found in the computer systems of Dairy Queens across seven states.
The company reports it has been notified that its customer data could be at risk and is cooperating with authorities, franchise locations, and credit card companies and processors in the investigation. Authorities are investigating the malware, known as "Backoff” that may have been found on the computer systems of some Dairy Queen restaurants.
“We have been working on the situation for a couple of days," said Dean Peters, media spokesman for the Minneapolis-based fast-food chain. "The protection of customer data is a top priority for us and our franchisees, and we take it seriously. We, like many other companies, were recently notified that customer data at a limited number of stores may be at risk, due to the widespread proliferation of the 'Backoff' malware. "
The Department of Homeland Security says Backoff is a point of sale malware that exploits "businesses' administrator accounts remotely" and exfiltrates "consumer payment data." The department says the malware was released last October, but was undetectable to current anti-malware software. It's believed to have infected more than 1,000 US businesses, and DHS is urging firms to check for infection.
"The Secret Service is active in contacting impacted businesses, as they are identified, and continues to work with and support those businesses that have been impacted by this [Backoff] malware," DHS said in a statement.
“We’re getting slammed today,” a fraud manager told KrebsOnSecurity. “We’re just getting all kinds of fraud cases coming in from members having counterfeit copies of their cards being used at dollar stores and grocery stores.”
"In addition to communicating with potentially affected franchised locations, credit card processors and credit card companies to gather relevant information, we immediately began cooperating with the authorities investigating this particular malware," the company said in its statement. "We continue to communicate with our franchisees and service providers regarding steps necessary to protect customer data and minimize any impact to our customers."
Dairy Queen Spokesman Dean Peters said franchisees, which operate most of Dairy Queen's 6,300 stores, are not required to report fraud to headquarters.
Beyond the statement, Dairy Queen has remained silent regarding the details of the breach and its investigation.