Incident: Hackers Compromise Supermarket Self-Checkout Systems, Steal Customer Data

Published Date: 2011-12-14

Postmortem Analysis
Timeline 1. The software failure incident at Lucky Supermarkets' self-checkout lanes happened in November 2011 [54621].
System 1. Credit and debit card readers at self-checkout lanes 2. Self-checkout machines 3. Extra computer board placed inside the checkout machine
Responsible Organization 1. Hackers - According to Article 54621, hackers were responsible for causing the software failure incident at the supermarket self-checkout lanes [54621].
Impacted Organization 1. Shoppers who used the compromised self-checkout machines at Lucky Supermarkets [54621]
Software Causes 1. The software cause of the failure incident was hackers tampering with the credit and debit card readers at self-checkout lanes in supermarkets, allowing them to steal money from shoppers who used the compromised machines [54621].
Non-software Causes 1. Tampering with credit and debit card readers at self-checkout lanes by criminals [54621] 2. Placing an extra computer board inside the checkout machine to record customers' financial information [54621]
Impacts 1. Financial loss for shoppers who used compromised self-checkout lanes, leading to stolen money [54621]. 2. Increased workload for Lucky Supermarkets in inspecting all stores and dealing with customer reports of compromised account data [54621]. 3. Customers facing the inconvenience of having to close their bank and credit card accounts as a precautionary measure [54621]. 4. Elevated risk of fraud for customers who used self-checkout lanes at the affected stores [54621]. 5. Negative impact on the reputation and trust of Lucky Supermarkets due to the incident [54621].
Preventions 1. Implementing regular security audits and inspections of self-checkout machines to detect any unauthorized modifications or tampering [54621]. 2. Enhancing cybersecurity measures such as encryption and tamper-evident seals on the credit and debit card readers to prevent unauthorized access [54621]. 3. Providing cybersecurity training to employees to recognize signs of tampering or suspicious activities on the self-checkout machines [54621].
Fixes 1. Implementing stronger encryption protocols for the credit and debit card readers at self-checkout lanes to prevent tampering by hackers [54621]. 2. Regular security audits and inspections of all self-checkout machines to detect any unauthorized modifications or additional hardware [54621]. 3. Enhancing customer awareness and education on how to identify signs of compromised machines and what steps to take if they suspect fraudulent activity [54621].
References 1. Lucky Supermarkets 2. Save Mart 3. Local, state, and federal law enforcement 4. Mercury News 5. Customers who reported being victims of fraud 6. Employee who discovered the extra computer board inside the checkout machine [54621]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization, multiple_organization (a) The software failure incident related to hackers tampering with credit and debit card readers at self-checkout lanes in Lucky Supermarkets, which is owned by Save Mart, has happened within the same organization. Lucky Supermarkets is inspecting all its stores in northern California and northern Nevada after the incident [54621]. (b) The software failure incident involving hackers targeting self-checkout lanes has affected multiple organizations, as more than 20 supermarkets operated by a California chain were impacted by the tampering of credit and debit card readers [54621].
Phase (Design/Operation) design, operation (a) The software failure incident in this case seems to be related to the design phase. The article mentions that criminals tampered with the credit and debit card readers at self-checkout lanes by placing an extra computer board inside the checkout machine to record customers' financial information. This indicates a failure due to contributing factors introduced during the system development or maintenance process [54621]. (b) The software failure incident could also be linked to the operation phase. The misuse of the compromised self-checkout machines by customers unknowingly using them could be considered a failure due to contributing factors introduced by the operation or misuse of the system [54621].
Boundary (Internal/External) within_system (a) within_system: The software failure incident reported in the article is primarily within the system. The hackers tampered with the credit and debit card readers at self-checkout lanes within the supermarkets, allowing them to steal money from shoppers who used the compromised machines. The incident involved criminals manipulating the hardware components of the self-checkout machines by placing an extra computer board inside the checkout machine to record customers' financial information [54621]. (b) outside_system: The software failure incident does not seem to have significant contributing factors originating from outside the system based on the information provided in the article.
Nature (Human/Non-human) non-human_actions (a) The software failure incident in this case was due to non-human actions. Hackers tampered with the credit and debit card readers at self-checkout lanes in supermarkets, allowing them to steal money from shoppers who used the compromised machines. The incident involved criminal activity and manipulation of the machines without direct human involvement from the supermarket chain or its employees [54621].
Dimension (Hardware/Software) hardware (a) The software failure incident in Article 54621 was related to hardware. The incident involved criminals tampering with the credit and debit card readers at self-checkout lanes by placing an extra computer board inside the checkout machine, which recorded customers' financial information [54621]. This hardware manipulation led to the compromise of account data and subsequent theft from shoppers.
Objective (Malicious/Non-malicious) malicious (a) The objective of the software failure incident was malicious. The article reports that criminals tampered with the credit and debit card readers at self-checkout lanes in supermarkets, allowing them to steal money from shoppers. This act was intentional and aimed at stealing money from customers [54621].
Intent (Poor/Accidental Decisions) poor_decisions (a) The intent of the software failure incident in this case seems to be more aligned with poor_decisions. The incident involved criminals tampering with the credit and debit card readers at self-checkout lanes in supermarkets, allowing them to steal money from shoppers. This tampering was not accidental but a deliberate act by the hackers to compromise the machines and record customers' financial information [54621].
Capability (Incompetence/Accidental) accidental (a) The software failure incident in Article 54621 was not explicitly attributed to development incompetence. The incident was primarily caused by hackers tampering with the credit and debit card readers at self-checkout lanes in supermarkets, leading to the theft of money from shoppers. The criminals placed an extra computer board inside the checkout machine to record customers' financial information, indicating a deliberate act of hacking rather than a failure due to development incompetence. (b) The software failure incident in Article 54621 was accidental. The incident was caused by criminals tampering with the credit and debit card readers at self-checkout lanes in supermarkets, which was not a result of accidental factors but a deliberate act of hacking.
Duration temporary (a) The software failure incident described in the article is more likely to be temporary rather than permanent. The incident involved hackers tampering with the credit and debit card readers at self-checkout lanes in supermarkets, allowing them to steal money from shoppers. The chain, Lucky Supermarkets, is actively inspecting its stores and urging customers to close their bank and credit card accounts if they used the compromised machines. This indicates that the failure was due to specific circumstances introduced by the criminal activity of the hackers rather than a permanent issue affecting all circumstances [54621].
Behaviour crash, omission, value, other (a) crash: The software failure incident in the article can be categorized as a crash as the self-checkout machines at the supermarket lost their intended functionality due to tampering by hackers. This resulted in the machines being compromised and customers' financial information being recorded without authorization, leading to fraudulent activities [54621]. (b) omission: The software failure incident can also be linked to omission as the compromised self-checkout machines omitted their intended function of securely processing customers' credit and debit card transactions. The omission occurred when the machines were manipulated by criminals to steal money from shoppers [54621]. (c) timing: The timing aspect of the software failure incident is not explicitly mentioned in the article. (d) value: The software failure incident can be associated with a value failure as the compromised self-checkout machines incorrectly performed their intended function of processing payment transactions by recording customers' financial information without consent, leading to fraudulent activities [54621]. (e) byzantine: The byzantine behavior is not explicitly described in the article. (f) other: The software failure incident can also be categorized as an "other" behavior as the compromised self-checkout machines exhibited unauthorized and malicious behavior that was not part of their intended design or functionality, resulting in financial losses and fraud for customers [54621].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property (d) property: People's material goods, money, or data was impacted due to the software failure From Article 54621, it is reported that hackers tampered with the credit and debit card readers at self-checkout lanes in supermarkets, allowing them to steal money from shoppers who used the compromised machines. Lucky Supermarkets received more than 1,000 calls from customers reporting they had been victims of fraud due to the compromised account data [54621]. This indicates that people's money and financial information were impacted as a consequence of the software failure incident.
Domain sales (a) The failed system in this incident was related to the sales industry, specifically affecting supermarket self-checkout lanes where customers use credit and debit cards to make purchases [54621].

Sources

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