Is your business protected from the rising cyber threat?

Cybersecurity Risks in Hospitality — What Restaurants & Caterers Need to Know

The hospitality industry has become a growing target for cybercriminals. With more restaurants and catering businesses relying on digital payments, online bookings and connected systems, a single cyber incident can disrupt service, damage customer trust and impact your revenue. As daily operations become more digital, safeguarding your systems is now a core part of running a modern hospitality business.

Why cyber incidents hit hospitality hard

Cyberattacks can shut down point‑of‑sale systems, compromise customer information or block access to key business tools that you rely on every day. Ransomware, data breaches and payment fraud are becoming more common, and the fallout can be significant, this includes business interruption, reputational damage and costly recovery efforts. In some cases, customer data is stolen and used for identity theft or financial fraud.

Common threats facing restaurants and catering businesses

• Unauthorised PoS attacks
  Criminals often target payment systems to steal card details using malware, skimming or network intrusion.
• Third‑party vendor risks
  Restaurants rely on booking platforms, delivery providers, payment apps and other services. When these third parties are compromised, attackers can access your systems too.
• Ransomware
  Threat actors lock your systems and demand payment to restore access. This can interrupt bookings, ordering, payroll, stock management and customer data.
• Phishing scams
  Front-of-house teams are regularly targeted through fake emails, texts or calls requesting login details or financial information.
• Wi‑Fi vulnerabilities
  Public Wi‑Fi, if not configured securely, can allow attackers to intercept data or gain access to your systems.
• Weak password management
  Using shared or simple passwords and not enabling multi-factor authentication creates easy entry points for criminals.
• Insider threats
  Data can be mishandled through simple mistakes, unauthorised access or incorrect sharing of customer information.

What a cyber incident looks like in real life

A restaurant group suffered a breach when attackers accessed the network through a compromised VPN account. Sensitive customer data and business documents were leaked online. Although the business refused to pay the ransom, the breach caused significant operational and reputational stress. Their cyber insurance helped fund incident response, forensic investigation, legal support and recovery costs — covering $170,000 of the $220,000 total impact.

Practical steps you can take to protect your business now

• Enable multi-factor authentication to make unauthorised access far harder.
• Use network segmentation so any breach is contained.
• Implement threat detection tools to block suspicious activity quickly.
• Train staff to recognise phishing and scam attempts.
• Ensure compliance with the Privacy Act 1988, supported by frameworks like ISO 27001.
• Consider cyber insurance as part of your risk mitigation strategy.

Get Cyber Insurance from Gallagher

As a proud partner of R&CA, Gallagher works with restaurants and catering businesses across Australia, providing cyber risk advice, tailored cyber insurance programs and specialist guidance.

Gallagher is an international insurance brokerage, risk management and consulting firm, operating in over 130 countries. With a network of network of 30+ regional and metropolitan branches across Australia, we are the chosen partner to more than 125,000 Australian businesses, from small businesses through to multinational corporations and iconic brands.

[DISCLAIMER]

To the extent that any material in this document may be considered advice, it does not take into account your objectives, needs or financial situation. You should consider whether the advice is appropriate for you and review any relevant Product Disclosure Statement and policy wording before taking out an insurance policy.