Supply chain β›“ Supply Chain

Threatpost

πŸ“… 2017-11-23 🏒 RMH Franchise Holdings 🦠 POS RAM-scraping malware
Primary Source β†—

Incident Details

RMH Franchise Holdings, one of the largest Applebee’s franchise operators in the United States, discovered malware on point-of-sale systems at its restaurants on February 13, 2018, and publicly disclosed the breach on March 2, 2018. The malware was designed to capture payment card information as it was processed through POS terminals, collecting customers’ names, credit or debit card numbers, expiration dates, and card verification codes. The breach affected more than 160 Applebee’s restaurant locations across 15 states, including Alabama, Arizona, Florida, Illinois, Indiana, Kansas, Kentucky, Mississippi, Missouri, Nebraska, Ohio, Oklahoma, Pennsylvania, Texas, and Wyoming. In the majority of affected locations, the malware was active between December 6, 2017, and January 2, 2018. A smaller number of locations were compromised starting as early as November 23 or December 5, 2017, with some infections persisting into early January 2018. RMH Franchise Holdings engaged third-party forensic investigators to determine the scope and nature of the incident. The company clarified that payments made through online ordering or self-pay tabletop devices were not affected, as those systems operated independently of the compromised POS terminals. Each RMH franchise location operated its own POS system separately from the broader Applebee’s corporate network operated by DineEquity (now Dine Brands), illustrating how franchise models create supply-chain complexity where individual franchise operators serve as third-party processors of customer payment data. The incident was part of a wave of POS malware attacks targeting the restaurant and hospitality industry in 2017-2018, exploiting the widespread use of magnetic stripe card technology and gaps in POS system security at franchise locations that may not have had the same security resources as corporate-managed stores.

Technical Details

Initial Attack Vector
Point-of-sale RAM-scraping malware deployed on POS systems at franchise locations
Vendor / Product
RMH Franchise Holdings
Malware Family
POS RAM-scraping malware
Supply Chain Attack
βœ… Confirmed third-party / vendor compromise

Timeline

  1. 2017-11-23 Breach occurred
  2. 2018-03-02 Publicly disclosed
  3. 2018-03-02 Customers notified