As data has become a critical asset and contributor to the success of restaurant businesses, so has its security. Unfortunately, having so many more digital assets to protect means there are exponentially more opportunities for threat actors to breach your systems and seize data. The consequences of data breaches are significant: Research from IBM found that in 2020, the estimated cost of a data breach in the global hospitality sector was $1.72 million. Just one year later, it climbed to $3.03 million. But fortunately, a growing assortment of tech tools are making it possible for restaurant operators to ramp up their security and be alerted in the moment if and when problems occur. For example, a recent report from Foodservice Consultants Society International recommends restaurant groups use integrated access control systems to restrict unauthorized access to sensitive information and areas of the operation, as well as monitor any unauthorized access attempts in real time. Further, mobile security management tools including remote monitoring can keep watch over system security around the clock, regardless of the restaurant’s location, and alert designated people to potential threats so they can mitigate them when time is critical. If you’re still at the stage of trying to assess your operation to determine what data you should protect and how – or even if you just want to make sure you’re not overlooking vulnerabilities, the National Restaurant Association offers a digital security guide that helps operators identify risks, protect against them, detect and respond to threats, and then recover from them with minimal disruption

​Amid all of the steps restaurant operators have been taking to remove friction from processes ranging from payment to staff scheduling, there is one area where friction is your friend: preventing fraud in your business. According to Kroll’s 2023 Fraud and Financial Crime Report, 69 percent of global executives and risk professionals expect financial crime risks to rise over the next year, with cybersecurity and data breaches being the biggest drivers.

The spike in digital transactions in recent years has made it easier to commit fraud – but you can take steps to minimize your risks. Bank of America’s State of the Restaurant Industry report advises restaurants to monitor anomalies in their accounts and other back-office operations, as well as take stock of areas of vulnerability. For example, note requests for refunds or payment voids, overpayment notices, digital payments that seem unusual in size or that are arriving from new sources or out of sequence, and communications that seem unusual.

​You can protect your largest areas of vulnerability by incorporating some extra checks that need to happen before transactions can be processed. That can include adding verification steps on invoice receipts and matching invoices to purchase orders, for instance. When onboarding a new vendor, verify their identity and key details. When you receive an account change request, require wait times or hold payment pending verification. If you receive a payment outside of the expected cycle or if you receive a large payment amount, you can establish review protocols and use protections such as multifactor authentication to make sure the transaction is legitimate. By adding some extra friction in the form of verification checks, you can make your business a less appealing target for fraud.