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Restaurants in Colorado hit With POS Data Breach

pos data breach

Updated August 7th, 2019

The Mariposa and the Royal Street Café in Deer Valley, Colo., are informing customers that their payment card information may have been compromised after an unauthorized party hacked the point-of-sale system of a resort operator that runs both restaurants.

The two Deer Valley Resort restaurants discovered on May 17 that an unauthorized person had gained access to their payment card system from January 10-28. During that period, cardholders’ names, payment card numbers, expiration dates, and internal verification codes were read off their payment cards’ magnetic strips. According to the Deer Valley Resort:

Guests of The Mariposa and Royal Street Café dining locations at Deer Valley Resort are being notified of a payment card security incident that has been identified and addressed. This notice explains the incident, the measures that have been taken, and the steps you can take in response.

On May 17, 2019, malware was detected on the system that supports payment processing for purchases made at The Mariposa and Royal Street Café dining locations. Immediate action was taken to secure the system and an investigation was launched. Payment card networks, law enforcement, and the payment application provider and support vendor were also notified. A forensic firm was also engaged to assist in the investigation. The investigation identified the operation of malware between January 10, 2019 and January 28, 2019 on systems that support payment processing systems for The Mariposa and Royal Street Café. It is believed the malware was designed to search for track data (which sometimes has cardholder name in addition to payment card number, expiration date, and internal verification code) read from the magnetic stripe of a payment card as it was being routed through the point-of-sale devices. There is no indication any additional customer information was affected.

During the investigation, the malware was immediately removed, and the dining locations continue to evaluate ways to enhance the security of payment card data. In addition, we continue to support law enforcement’s investigation and are working with the payment card networks so the banks that issue the payment cards involved can be made aware and initiate heightened monitoring.

It is always advisable for guests to closely monitor their payment card statements for any unauthorized activity. Guests should immediately report any unauthorized charges to the card issuer because payment card rules generally provide that cardholders are not responsible for unauthorized charges reported in a timely manner. The phone number to call can usually be found on the back of your payment card.

We apologize for any inconvenience. If guests have questions regarding this incident, you can call 855-795-3706 Monday through Friday between the hours of 7:00 a.m. and 7:00 p.m. MDT.

Deer Valley Resort said that once the intrusion was detected, the malware was removed, outside cybersecurity and law enforcement were called in to help, and the banks that issue the payment cards involved were informed so that each could initiate heightened monitoring.

The company did not release how many people may have been affected by the breach.

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Written by Kofi Anash

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