Hy-Vee Launches Investigation Into Payment Systems Data Breach

8/14/2019

Hy-Vee's investigation into a security breach its involving payment processing systems is probing some purchases at the grocer's fuel pumps

Hy-Vee Inc. has revealed that it’s conducting an investigation into a security incident involving its payment processing systems. The probe is focusing on transactions at some of the grocer’s fuel pumps, drive-through coffee shops and restaurants, including its Market Grilles, Market Grille Expresses, and the Wahlburgers locations owned and operated by Hy-Vee.

“After recently detecting unauthorized activity on some of our payment processing systems, we immediately began an investigation with the help of leading cybersecurity firms,” Hy-Vee noted in a statement. “We also notified federal law enforcement and the payment card networks. We believe the actions we have taken have stopped the unauthorized activity on our payment processing systems. … [The] locations [under investigation] have different point-of-sale systems than those located at our grocery stores, drug stores and inside our convenience stores, which utilize point-to-point encryption technology for processing payment card transactions. This encryption technology protects card data by making it unreadable. Based on our preliminary investigation, we believe payment card transactions that were swiped or inserted on these systems, which are utilized at our front-end checkout lanes, pharmacies, customer service counters, wine and spirits locations, floral departments, clinics and all other food service areas, as well as transactions processed through [ecommerce service] Aisles Online, are not involved.”

Noting that the investigation was “in its earliest stages,” Hy-Vee had no further details to offer, but promised to keep customers notified, additionally cautioning them to check their payment card statements for any unauthorized activity.

Employee-owned Hy-Vee Inc. operates more than 260 retail stores across eight Midwestern states, employing more than 80,000 associates. The West Des Moines, Iowa-based company is No. 12 on Progressive Grocer’s 2019 Super 50 list of the top grocers in the United States.