When you think of cybercrime, you may picture a shadowy figure hacking into a network from afar. But the biggest cyber threat to your restaurant could be a trusted staff member. Here’s what to look for, along with tips to protect your restaurant from within.
What are insider threats in restaurant cybersecurity?
An insider threat comes from someone who already has legitimate access to your systems. This could be a current or former employee or contractor. Their actions, whether intentional or accidental, can lead to a data breach, financial loss, or damage to your reputation.
Think about your own operation:
- How many staff members have access to sensitive systems like your point-of-sale (POS) devices, scheduling software, or financial accounts?
- Of those, how many receive monthly cybersecurity training?
If you’re like most hospitality operators, the answer highlights a major vulnerability. The more people with access, the higher the risk of a costly mistake.
How human error can become an insider threat in your restaurant
Most insider threats are not malicious. Often, they result from a simple human error by a well-meaning team member. A busy manager, trying to clean up an inbox between shifts, might click on a deceptive link without thinking.
Imagine: Your restaurant manager receives an urgent email that appears to be from a government agency. The email warns of a health code violation and instructs them to download an attached report. The manager, worried about compliance, clicks the link and unknowingly installs malware that gives cybercriminals access to your entire network. The manager did not mean to cause harm, but the action opened the door to a devastating attack.
How social engineering exploits employees to breach cybersecurity
Social engineering is a tactic where criminals manipulate people into giving up confidential information or performing actions that compromise security. It’s a powerful tool because it preys on human psychology — trust and the desire to be helpful. A team member who falls for one of these schemes becomes an unintentional insider threat.
Consider these examples:
- Business email compromise: You receive an email that looks like it’s from your main food supplier. It explains they’ve updated their banking information and asks you to direct all future payments to a new account. You make the payment, but the money goes straight to a criminal.
- Invoice manipulation: A hacker intercepts a legitimate invoice from your linen service provider. They alter the bank account details and send it to your accounts payable department. The invoice looks real, and the amount is correct, but the payment ends up in the wrong hands.
These scams are becoming more sophisticated with the help of artificial intelligence (AI). AI can now:
- Generate highly convincing phishing emails, free of telltale grammar mistakes.
- Create deepfake audio that mimics a trusted vendor’s or owner’s voice, making a fraudulent request over the phone seem completely legitimate.
3 types of insider cyber threats restaurants can face
Insider threats come in a few different flavors. Understanding them can help you spot the risks in your own restaurant.
- The malicious insider: A disgruntled employee or contractor intentionally steals data, sabotages systems, or commits fraud for personal gain. They might steal customer credit card information, alter payroll records, or delete critical files.
- The negligent insider: These are teammates who accidentally expose the business to risk through carelessness. Examples include using weak passwords, sharing login credentials, leaving a POS terminal unlocked, or falling for a phishing scam.
- The third-party insider: This refers to vendors, suppliers, or contractors who have access to your systems. If their own security practices are weak, they can become a weak link in your defenses, creating a pathway for attackers to reach your data.
Insider threats vs. external threats
External threats are attackers with no authorized access who try to break in. You defend against them with:
- Firewalls
- Antivirus software
- Other perimeter security
Insider threats are different because the person already has the keys.
Think of it this way: a locked front door and a security system might stop a burglar from breaking in. But they do nothing to stop a person with a key who walks in and unlocks the back door for their accomplices.
No matter how sophisticated your external security is, it cannot prevent a person on the inside from making a critical mistake.
Is neglecting to update a software patch an insider threat?
A software patch is an update that fixes security vulnerabilities. When your team fails to apply these patches to your POS systems, computers, security cameras, or other devices, they leave doors open for attackers. While it’s usually an act of negligence rather than malice, this failure creates a vulnerability.
Suppose your restaurant’s Wi-Fi router has a known vulnerability, and the manufacturer releases a firmware update to fix it. If your restaurant does not apply the update, hackers could exploit the flaw to intercept sensitive customer data, such as payment information or loyalty program details. This inaction from within your organization functions as an insider threat.
Make sure to enable automatic updates on all software and devices whenever possible. And work with your vendors to create a clear process for applying patches and ensuring your systems are always up to date.
Vendor cyber risk: why third parties can be insider threats
Many hospitality operators believe their vendors handle all the cybersecurity. You might assume your POS provider, payroll company, or booking platform has everything covered. This is a dangerous misconception.
While you can outsource tasks, you cannot outsource liability. If a breach occurs through one of your vendors, it’s your business and reputation on the line.
A vendor with poor security can become your biggest insider threat. If their network is compromised, attackers can use their legitimate access to pivot into your systems.
To mitigate this cyber risk:
- Vet your vendors carefully: Ask tough questions about their security measures, their breach history, and what they do to protect your data.
- Review your contracts: Ensure your agreements clearly outline security responsibilities and what happens in the event of a breach.
- Monitor vendor access: Limit and track what third parties can do within your network.
6 tips to prevent insider cyber threats in your restaurant
Protecting your restaurant from insider threats doesn't require a massive budget, but you do need to commit to cybersecurity best practices and continuous monitoring. Because new threats emerge every week, you need to revisit your cyber precautions frequently (at least quarterly).
Here are six practical steps you can take today:
- Train your team monthly: Ongoing training is your best defense. Teach teammates how to spot phishing emails and suspicious calls, use strong passwords, and handle customer data securely. Educate them on the latest threats.
- Limit access to what is necessary: Not everyone needs the keys to every system. Implement role-based access to ensure teammates can only see and do what is required for their specific job.
- Use multi-factor authentication (MFA): MFA requires a second form of verification, such as a code from an authentication app, before granting access. Enable MFA on all business systems and accounts, including email, banking, and social media.
- Review access permissions regularly: When a teammate leaves or changes roles, update their access immediately. Conduct quarterly reviews to ensure no one has more access than they need.
- Secure your physical devices: Keep POS terminals, tablets, and back-office computers in secure locations. Lock them up when not in use and never leave them unattended in public areas.
- Implement verification protocols: Require at least two people to sign off on large financial transactions. Teach all team members how to handle suspicious financial or data requests.
Why cybersecurity controls help you protect your bottom line
Managing a restaurant is demanding, and cybersecurity can feel like one more overwhelming task. However, a single cyber incident can jeopardize your profitability and even the future of your business. By understanding the nature of insider threats and taking these practical, common-sense steps, you can empower your team and build a stronger, more resilient operation.
Want to learn more?
Connect with the Risk Strategies Cyber Risk Team at cyber@risk-strategies.com.
About the authors
For the past 20 years, Rob Hoover has helped hospitality businesses as a risk management and insurance advisor. At 15, he started as a potato peeler in a small, family-owned diner. Today, Rob is an industry insider with deep knowledge of day-to-day hospitality challenges and a keen interest in cybersecurity.
Allen Blount leads the Cyber Team at Risk Strategies. He specializes in both cyber insurance and tech E&O (errors and omissions). Prior to this role, he spent 12 years with Zurich North America, gaining extensive experience as a Cyber and Professional Liability Underwriting Manager. Before his insurance career, he practiced law.
