Corpus Christi Chipotle location possibly impacted by nationwide data breach

Gladys Abbott
May 29, 2017

For three weeks, hackers used malware to take client payment information from nearly all of Chipotle Mexican Grill Inc's (CMG.N) restaurants, the company stated on Friday.

According to the company's website, the Chubbuck location fell victim to malware between March 27 and April 18. Cowen and Company raised their price objective on shares of Chipotle Mexican Grill from $375.00 to $440.00 and gave the company a "market perform" rating in a research report on Wednesday, April 26th. Company spokesman Chris Arnold told USA Today that the data breach affected most of Chipotle's 2,249 restaurants. CMG, -0.26% said it has completed an investigation into a security breach at some of its restaurants in the spring, and offered details on which locations were affected and when. It's believed account numbers and internal verification codes were stolen during the incident. The malware was picking up data from cards used on point-of-sale payment devices at Chipotle restaurants for nearly a month earlier this year. Chipotle isn't legally required to offer credit protection for affected customers, making it just another one of the many things Chipotle can screw you over for.

Linn Freedman, an attorney at Robinson & Cole LLP specialising in data breach response, said Chipotle was putting the burden on the consumer to discover possible fraudulent transactions by notifying them through the websites. "You should immediately report any unauthorized charges to your card issuer because payment card rules generally provide that cardholders are not responsible for unauthorized charges reported in a timely manner".

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Chipotle said in its blog post that it worked with law enforcement officials and cybersecurity firms on an investigation. Barclays PLC reiterated an "equal weight" rating and set a $395.00 target price on shares of Chipotle Mexican Grill in a research report on Monday, February 6th.

In 2015, cases of norovirus and E.coli were reported by Chipotle customers - who later sued the company. It lured customers back with free food and by closing all stores nationwide for a day of training. In addition, "we.are working with the payment card networks so that the banks that issue payment cards can be made aware and initiate heightened monitoring".

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