Restaurant Chain Settles FTC's Charges

Dave and Buster's Holdings Inc., an entertainment and restaurant chain, has settled charges brought by the Federal Trade Commission that the company failed to adequately secure the credit and debit card information of customers, FTC officials said Thursday.

The company was hacked in mid-2007 by an intruder who installed unauthorized software and intercepted data sent from the restaurants to credit card processing companies, the FTC reports. An estimated 130,000 credit and debit cards were affected, with banks paying out "several hundred thousand dollars in fraudulent charges," the FTC said in its complaint. The company has 53 restaurants.

"After learning of the breach, respondent (Dave and Buster's) took steps to prevent further unauthorized access and to notify law enforcement and the credit card companies of affected consumers," the complaint said.

The settlement requires Dave & Buster's to put in place a comprehensive security program. Officials at
Dave and Buster's declined comment.

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