Data theft disproportionately affects restaurants — hackers have an affinity for businesses like yours. In fact, restaurants are the single most targeted business for cyber-attacks and data breaches, accounting for over half of all cyber-attacks.
Technology has greatly changed how consumers spend money. With a tap of a finger, you can transfer money out of your bank account, make a large online purchase, or order something as simple as your dog’s new food. This is convenient, but it comes at a cost; hackers can exploit these technological advancements to take people’s personal and financial data (yikes).
NO SIMPLE SOLUTION
Cybersecurity experts admit that there is not one simple solution to this problem, as many different factors are to blame. However, one of the major factors that increase fraudulent activity is the use of centralized servers (which is exactly what it sounds like: a single server that directs all communications and stores all of the user’s data).
Having a centralized server is risky — no individual server should store hundreds of thousands of people’s most private information, as they are at greater risk for both complete failure and cyber attack. This is where blockchain comes in.
There is no universal definition of a blockchain, but a blockchain is essentially a growing list of blocks managed by a cluster of computers, with no single entity owning the data. The whole idea is to disperse data and information across different networks, effectually creating a democratized server. It has been praised as the new and innovative solution to cybersecurity compromises, but many argue that this praise is unwarranted.
CAN BLOCKCHAIN END DATA THEFT?
Blockchain is not revolutionary and blockchain is not going to change the world. Scholars are continuously debating whether or not it is even a more secure approach to data management. However, its most evident pitfall is its weak capacity. Currently, transaction volumes are low — meaning that not that many people are using blockchain. As more people use blockchain and volumes rise, then the speed of blockchain is expected to drop dramatically. The current system is not equipped to handle a large number of users, making it an even less viable solution. Moral of the story, blockchain is not going to magically solve the world’s cybersecurity problems.
Regardless of the size and nature of your establishment, cybersecurity should matter to you. The aftermath of a security breach is messy. It can damage anything from customer relations to your personal finances. Although there are mechanisms in place for preventing and managing cyber attacks, nothing is foolproof. In order to truly protect yourself, you need to have a safety net. You need to have cyber liability coverage.