Five Guys Data Breach Class Action Settlement

Article: Five Guys to pay $700,000 to Settle Suit over 2022 Data Breach

Our Thoughts:

As a fan of Five Guys and their delicious burgers and fries, it is disappointing to hear about the data breach they experienced. Unfortunately, data breaches occur more often in today's digital landscape, but how companies respond to such incidents is crucial. While the financial losses resulting from cyber-attacks can be significant, the loss of trust from customers and employees is equally impactful and often irreparable.

In this case, employee data was compromised. The company did the right thing by providing credit protection and identity theft monitoring services to all 38,000 employees, but they still filed a class action lawsuit against the company. This settlement, which cost Five Guys over $700,000, serves as a stark reminder of the importance of safeguarding personal information and the potential consequences of failing to do so.

Both large and small companies bear a responsibility to prioritize data security and implement robust measures to prevent breaches. Five Guys managed to absorb the monetary loss and hit to their reputation, but 75% of small businesses (<1000 employees) could not continue operating after a large data breach. People believe that small businesses fly under the radar from attacks, but 82% of reported ransomware attacks in 2021 were against companies with less than 1,000 employees. Companies must foster a culture of cybersecurity awareness and invest in comprehensive security protocols. By doing this, businesses can mitigate the risk of data breaches and uphold the trust of their customers and employees alike.