Data Breach Alert: Sarku Japan

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Recently, Sarku Japan confirmed that the company experienced a data breach resulting in the sensitive information—including Social Security numbers—of as many as 28,298 individuals being compromised.

If you received a data breach notification, it is essential you understand what is at risk. More about our investigation into this breach, and what you can do if your data was stolen, is available here.

Last year, 1,862 data breaches affected more than 189 million people. On average, victims of identity theft spend 200 hours and over $1,300 recovering their identity. Many victims also suffer emotional distress, credit damage, and may even end up with a criminal record. Taking immediate action is the best way to prevent the worst consequences of a data breach.

What We Know So Far About the Sarku Japan Data Breach

According to an official filing by the company, on February 6, 2022, Sarku Japan learned that an unauthorized party was able to access certain portions of its computer network. In response, the company reviewed all affected files to determine whether any consumer information may have been compromised. The company completed its review of the files on February 10, 2022, and then confirmed that affected individuals’ names, addresses, dates of birth and Social Security numbers may have been accessible to the unauthorized party. The Sarku Japan breach is believed to have affected as many as 28,298 people.

On March 16, 2022, Sarku Japan began sending out data breach notification letters to all individuals whose information was compromised as a result of the recent data security incident.

Sarku Japan is a restaurant chain operating in malls and free-standing restaurants throughout the United States. The company currently operates more than 250 restaurants in the United States, Puerto Rico and South America. The first Sarku Japan restaurant was opened in Boston, Massachusetts; however, the company is not based in Toronto, Ontario, Canada. The company employs more than 1,800 people and generates annual revenue of roughly $121 million.

More About the Causes and Risks of Data Breaches

Often, data breaches are the result of a hacker gaining unauthorized access to a company’s computer systems with the intention of obtaining sensitive consumer information. While no one can know the reason why a hacker targeted Sarku, it is common for hackers and other criminals to identify those companies believed to have weak data security systems or vulnerabilities in their networks.

Once a cybercriminal gains access to a computer network, they can then access and remove any data stored on the compromised servers. While in most cases a company experiencing a data breach can identify which files were accessible, there may be no way for the company to tell which files the hacker actually accessed or whether they removed any data.

While the fact that your information was compromised in a data breach does not necessarily mean it will be used for criminal purposes, being the victim of a data breach puts your sensitive data in the hands of an unauthorized person. As a result, you are at an increased risk of identity theft and other frauds, and criminal use of your information is a possibility that should not be ignored.

Given this reality, individuals who receive a Sarku Japan data breach notification should take the situation seriously and remain vigilant in checking for any signs of unauthorized activity. Businesses like Sarku are responsible for protecting the consumer data in their possession. If evidence emerges that Sarku failed to adequately protect your sensitive information, you may be eligible for financial compensation through a data breach lawsuit.

What Are Consumers’ Remedies in the Wake of the Sarku Data Breach?

When customers decided to do business with Sarku, they assumed that the company would take their privacy concerns seriously. And it goes without saying that consumers would think twice before giving a company access to their information if they knew it wasn’t going to be secure. Thus, data breaches such as this one raise questions about the adequacy of a company’s data security system.

When a business, government entity, non-profit organization, school, or any other organization accepts and stores consumer data, it also accepts a legal obligation to ensure this information remains private. The United States data breach laws allow consumers to pursue civil data breach claims against organizations that fail to protect their information.

Of course, given the recency of the Sarku Japan data breach, the investigation into the incident is still in its early stages. And, as of right now, there is not yet any evidence suggesting Sarku is legally responsible for the breach. However, that could change as additional information about the breach and its causes is revealed.

If you have questions about your ability to bring a data breach class action lawsuit against Sarku Japan, reach out to a data breach attorney as soon as possible.

What Should You Do if You Receive a Sarku Japan Data Breach Notification?

If Sarku Japan sends you a data breach notification letter, you are among those whose information was compromised in the recent breach. While this isn’t a time to panic, the situation warrants your attention. Below are a few important steps you can take to protect yourself from identity theft and other fraudulent activity:

  1. Identify What Information Was Compromised: The first thing to do after learning of a data breach is to carefully review the data breach letter sent. The letter will tell you what information of yours was accessible to the unauthorized party. Be sure to make a copy of the letter and keep it for your records. If you have trouble understanding the letter or what steps you can take to protect yourself, a data breach lawyer can help.

  2. Limit Future Access to Your Accounts: Once you determine what information of yours was affected by the breach, the safest play is to assume that the hacker orchestrating the attack stole your data. While this may not be the case, it’s better to be safe than sorry. To prevent future access to your accounts, you should change all passwords and security questions for any online account. This includes online banking accounts, credit card accounts, online shopping accounts, and any other account containing your personal information. You should also consider changing your social media account passwords and setting up multi-factor authentication where it is available.

  3. Protect Your Credit and Your Financial Accounts: After a data breach, companies often provide affected parties with free credit monitoring services. Signing up for the free credit monitoring offers some significant protections and doesn’t impact any of your rights to pursue a data breach lawsuit against the company if it turns out they were legally responsible for the breach. You should contact a credit bureau to request a copy of your credit report—even if you do not notice any signs of fraud or unauthorized activity. Adding a fraud alert to your account will provide you with additional protection.

  4. Consider Implementing a Credit Freeze: A credit freeze prevents anyone from accessing your credit report. Credit freezes are free and stay in effect until you remove them. Once a credit freeze is in place, you can temporarily lift the freeze if you need to apply for any type of credit. While placing a credit freeze on your accounts may seem like overkill, given the risks involved, it’s justified. According to the Identity Theft Resource Center (“ITRC”), placing a credit freeze on your account is the “single most effective way to prevent a new credit/financial account from being opened.” However, just 3% of data breach victims place a freeze on their accounts.

  5. Regularly Monitor Your Credit Report and Financial Accounts: Protecting yourself in the wake of a data breach requires an ongoing effort on your part. You should regularly check your credit report and all financial account statements, looking for any signs of unauthorized activity or fraud. You should also call your banks and credit card companies to report the fact that your information was compromised in a data breach.

Below is a copy of the initial data breach letter issued by Sarku Japan:

Dear [Consumer],

Sarku Japan (“Sarku Japan”) is writing to inform you of a recent event that may impact the security of some of your information. Although we have received no indication of any actual or attempted misuse of your information as a result of this event, this notice provides information about the event, our response, and resources available to you to help protect your information from possible misuse, should you feel it is necessary to do so.

What Happened? On February 6, 2022, Sarku Japan discovered that an unauthorized actor gained access to certain Sarku Japan systems and that information contained in those systems may have been viewed or taken by the unauthorized actor. Therefore, we conducted a review of the information within those systems to identify individuals with personal information that was potentially accessible. We concluded this review on February 10, 2022. Although we are unaware of any actual or attempted misuse of your personal information, we are providing you this notice out of an abundance of caution.

What Information Was Involved? The investigation determined that your name, address, date of birth, and Social Security number may have been accessible.

What We Are Doing. The confidentiality, privacy, and security of information in our care are among our highest priorities. Upon learning of the event, we moved quickly to investigate and respond to the event, assess the security of our systems, and notify potentially affected individuals. We are notifying potentially affected individuals, including you, so that you may take further steps to best protect your information, should you feel it is necessary to do so. We regret any inconvenience or concern this event may cause. As an added precaution, and although we do not have any indication of any actual or attempted misuse of your personal information, we are offering identity monitoring services through Kroll for 12 months at no cost to you.

What You Can Do. We encourage you to remain vigilant against incidents of identity theft and fraud by reviewing your account statements and credit reports for suspicious activity and to report any suspicious activity promptly to your bank or financial institution. Additional information and resources are included in the enclosed Steps You Can Take To Help Protect Personal Information. You may activate the complimentary identity monitoring services available to you. Activation instructions are enclosed in this letter.

For More Information. If you have additional questions, please call the dedicated assistance line at 1-855-541-3570, Monday through Friday from 8:00 a.m. to 5:30 p.m. Central Time, excluding major U.S. holidays. Please have your Membership Number ready, which can be found in the enclosed Attachment.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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