Zaxby's Locations Identify Data Security Breach

ATHENS, Ga. (Jan. 11, 2013) — Zaxby's Franchising, Inc. announced today that certain licensed locations have identified suspicious files on their systems that may have resulted in unauthorized access to credit and debit card information or have been identified by credit card processing companies as common points of purchase for some fraudulent activity.

Zaxby's Franchising, Inc. has notified appropriate law enforcement authorities of the potential criminal activity, which is believed to have originated from external sources, and will continue to cooperate with any investigation of this situation.

Zaxby's Franchising, Inc. assisted those stores notified by credit card processing companies in reviewing the issue. During the course of its forensic investigation, Zaxby's Franchising, Inc. identified some suspicious files, including malware, on the licensees' computer systems at certain Zaxby's locations. Because those files could have been used to export guest names and credit and debit card numbers, Zaxby's Franchising, Inc. informed appropriate law enforcement authorities of the potential criminal activity.

Although the forensic investigation has not determined whether credit or debit card data left the processing systems of any of the locations, Zaxby's Franchising, Inc. is concerned that the existence of the suspicious files could indicate that an attacker or attackers may have accessed data, including credit and debit card information.

Zaxby’s Franchising, Inc. is working with all of its store locations to implement additional security measures to prevent further intrusions. A list of affected store locations can be found by clicking here and will be updated as appropriate.

Zaxby's Franchising, Inc. takes the security of guest information very seriously and is working closely with the affected store locations to provide notice to potentially affected guests. Zaxby's Franchising, Inc. encourages all potentially affected guests to monitor their financial accounts for any unauthorized activity and to check their credit scores.

Interested guests can order a free copy of their credit reports by visiting the website www.annualcreditreport.com, by calling (877) 322-8228, or by completing the Annual Credit Report Form at www.consumer.ftc.gov/articles/pdf-0093-annual-report-request-form.pdf. Any incident of fraud that guests may identify should promptly be reported to local law enforcement, the appropriate state Attorney General's office, and the Federal Trade Commission.

For more information, contact Zaxby's at 1-877-739-8599 or visit www.zaxbys.com.

About Zaxby's

An alternative to fast food, Zaxby's offers its guests prepared-at-order Chicken Fingerz, Jumbo Buffalo Wings, sandwiches, Zalads and Zappetizers, along with a variety of nine sauces ranging from Wimpy and Tongue Torch to Nuclear and Insane. Childhood friends Zach McLeroy and Tony Townley hatched the Athens, Ga.-based chain in 1990 to provide a fun, relaxing atmosphere that would keep guests coming back for more. The company ranked number seven in the 2012 Top 10 Excellent Large Fast-Food Chains With 500 Or More U.S. Units Quick-Track study published by Sandelman & Associates. The chain also ranked number five in the nation for total sales and number one in the chicken segment in the 2012 Top 150 Fast-Casual Chain Restaurant Report published by Technomic. Zaxby's operates more than 560 locations in 13 states, including Alabama, Arkansas, Florida, Georgia, Indiana, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Texas and Virginia. For more information, please visit zaxbys.com, facebook.com/zaxbys, or follow on Twitter @Zaxbys.

SOURCE Zaxby's

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