The restaurant experience across Aotearoa is rapidly evolving, one part of this is a shift in how much technology is used in our venues. Previously we have written about how payment methods are transitioning quickly, with younger generations, particularly Gen-Z, eagerly embracing new digital payment solutions. There are also now even more technologies evolving that could cause increased risk for our industry. This digital transformation, while offering tremendous benefits, also introduces new cybersecurity challenges for our hospitality sector.

The New Payment Landscape and Associated Risks

The hospitality industry is witnessing a significant shift toward frictionless payments. From payWave to digital wallets and QR code payments, these solutions are becoming increasingly prevalent in New Zealand restaurants. While these technologies align with the industry’s goal of reducing friction – similar to how Uber revolutionized taxi payments – they also present new security vulnerabilities.

Point-of-sale (POS) systems, now handling multiple payment methods including emerging platforms like DOSH, face increased security risks. The recent global attack on Aloha POS software demonstrates how attractive these systems are to cybercriminals.

As New Zealand moves toward digital payment solutions like DOSH and WeChat Pay, restaurants must address new security challenges. QR codes, which gained widespread use during COVID-19 for both payments and contact tracing, can be manipulated for phishing schemes. Digital wallets, while offering convenience, present potential vulnerabilities if payment data isn’t properly encrypted. The rise of these payment methods requires restaurants to implement additional security measures to protect both customer data and business operations.

Emerging Technology Threats

Beyond payment systems, emerging technologies present new risks for Kiwi restaurants. Deepfake technology now allows cybercriminals to create convincing impersonations of restaurant owners or managers through AI-generated voices and videos. These attacks could be particularly effective in New Zealand’s close-knit hospitality community, where personal relationships often drive business operations.

AI-powered attacks have also evolved to create sophisticated phishing attempts that can mimic legitimate supplier communications with alarming accuracy. Cybercriminals can generate convincing messages that appear to come from payment providers or the IRD, and even create SMS-based scams impersonating delivery services. The natural tone and localized content of these messages make them increasingly difficult to identify as fraudulent.

Supply Chain and Delivery Platform Security

The integration of multiple systems – from payment processors to delivery platforms – creates complex security challenges that require comprehensive protection strategies. With online ordering becoming increasingly prevalent, restaurants must ensure their interconnected systems are protected against unauthorized access and data breaches.

Protecting Your Restaurant in the Digital Age

Effective cybersecurity in today’s restaurant environment requires a multi-faceted approach. Regular staff training on security awareness should be combined with robust verification processes for payment system changes. Careful vetting of third-party payment and delivery platforms is essential, as is engagement with industry bodies like the Restaurant Association of New Zealand.

Restaurants should implement multi-factor authentication for all payment systems and conduct regular security audits of their POS and payment platforms. Staff training must focus on identifying sophisticated phishing attempts, and clear protocols should be established for verifying payment-related communications. Participation in industry information-sharing networks can help restaurants stay ahead of emerging threats.

As New Zealand’s hospitality sector embraces new payment technologies – from contactless payments to potential cryptocurrency adoption – cybersecurity must remain a priority. By understanding both the opportunities and risks these technologies present, restaurants can build robust defenses while continuing to offer the seamless dining experiences that Kiwi customers increasingly expect.

The key is finding the balance between frictionless payments and security – ensuring that in reducing transaction friction, we don’t inadvertently create security vulnerabilities that could harm our businesses and customers. Through careful planning and implementation of security measures, restaurants can safely embrace the digital payment revolution while protecting their operations and customers.