A Surge in Account Takeover Attacks Targeting QSRs
The quick service restaurant (QSR) industry has become a prime target for online fraud, and the problem is escalating. According to Kasada’s 2025 Account Takeover Trends Report, the food and restaurant sector was among the most impacted industries last year. Over 130 QSR companies suffered successful account takeover (ATO) attacks, marking a staggering 72% increase from the previous year.
More than half (54 percent) of quick-service customers say they prefer restaurants where they are loyalty members. The explosion of online ordering, mobile apps, and digital rewards programs to satisfy consumer preferences has dramatically expanded the attack surface for cybercriminals. The sheer volume of digital transactions combined with stored payment details, loyalty points, and promotional discounts embedded within customer accounts has made QSRs a lucrative target.
Adding to the problem is the widespread reuse of passwords across platforms. With over 65% of users recycling their login credentials, cybercriminals can breach QSR accounts using credential stuffing attacks – where bots test stolen credentials in bulk until they find valid ones. Once inside, attackers exploit saved credit cards, loyalty balances, and stored gift cards to extract value before customers even realize they’ve been compromised.
Another growing trend? Social engineering scams disguised as customer support interactions. Fraudsters have been seen impersonating restaurant representatives, tricking customers into revealing their login credentials via phishing emails, fake refund requests, or fraudulent chat support.
Kasada research has shown that food accounts are one of the fastest growing industries for account takeover fraud.
How Fraudsters Are Exploiting Online Ordering Systems
Online ordering and mobile apps have modernized the way people interact with fast food brands. But this digital shift has also made the industry vulnerable to a variety of fraud tactics. Account takeover fraud is one of the most prevalent methods used to exploit online ordering systems. Here’s how it works:
- Credential stuffing attacks – Cybercriminals deploy bots to test stolen login credentials (often obtained or purchased from dark web marketplaces) across multiple platforms, including restaurant apps and websites. Automated scripts systematically attempt thousands of username-password combinations in search of successful logins.
- Account validation – If some login attempts succeed, fraudsters have taken over active accounts that can contain valuable stored payment information, loyalty points, or gift card balances.
- Mass monetization and resale – Verified, compromised accounts are then bundled and sold in underground markets. Prices vary depending on the account’s value, with those containing linked payment methods, high loyalty balances, or promotional discounts fetching higher sums.
- Abuse and exploitation – Once purchased, consumers use these accounts to place unauthorized food orders, use digital rewards, and exploit promotional offers.
In many cases, victims are unaware that their accounts have been hijacked until fraudulent transactions appear. By that point, fraudsters have already redeemed rewards, placed orders, and vanished without a trace.
Why QSRs Are a Hotspot for Credit Card Testing
One of the lesser-known reasons fraudsters target fast food transactions is that QSRs provide a favorable testing ground for stolen credit cards. The relatively low cost of food purchases makes it easy to validate a card’s usability without raising red flags. Here’s why fraudsters love using stolen cards at QSRs:
- Small purchases often bypass fraud detection – Many card issuers allow low-value transactions without requiring CVV authentication, making it easier for criminals to conduct test transactions.
- High transaction volume obscures fraud – The sheer volume of daily purchases at major QSR chains makes it harder for fraud detection systems to differentiate between legitimate and fraudulent activity.
- Instant digital transactions – Unlike luxury goods, which often require shipping and verification, food orders are fulfilled within minutes, reducing the risk of fraudsters being detected before completion.
- Multiple payment methods – QSRs often accept a variety of digital payment options, including mobile wallets and stored payment details, providing criminals with numerous ways to validate stolen card details.
Once a stolen card is successfully tested at a QSR, criminals can confidently use it for larger purchases elsewhere, such as electronics, luxury items, or high-end gift cards. Card washing can cost businesses millions each year.
Fraudsters take advantage of the relatively small order size, high transaction volume, and rapid order fulfillment time associated with the QSR industry. All of which make it more challenging to detect and stop fraud before it happens. Sellers of stolen accounts include instructions that emphasize the need to use such accounts quickly before fraud can be detected.
The High Cost of QSR Fraud
The financial impact of fraud on QSRs is high given the multiple layers of expenses that businesses must absorb:
- Chargebacks – When fraudulent transactions are disputed, restaurants not only lose the cost of the food but also incur costly chargeback fees from payment processors.
- Lost rewards and gift cards – Fraudsters who exploit loyalty programs and gift cards drain value from legitimate customers, forcing businesses to issue replacements and refunds.
- Increased processing fees – Payment networks may raise transaction fees for businesses with high chargeback rates, increasing the cost of doing business.
- Damage to brand reputation – Customers who experience fraud may lose trust in the restaurant’s security and take their business elsewhere, resulting in long-term revenue losses.
- Operational disruptions – Increased fraud leads to more disputes, customer complaints, and additional resources spent on fraud resolution, putting strain on business operations.
With digital ordering now representing a significant portion of QSR sales, companies cannot afford to overlook these threats and the impact it has on their operations and margins.
How Kasada Protects QSRs from Automated Fraud
To combat the growing wave of fraud, QSRs must stop automated threats at the source before fraudsters can exploit vulnerabilities at scale. This is where Kasada’s knowledge of account takeover communities and advanced bot mitigation technology comes into play.
Kasada prevents account takeover fraud, credential stuffing, and gift card cracking by disrupting the automation behind these attacks. Here’s how:
- Blocking fake account creation – Fraudsters often create thousands of fake accounts to abuse promotions and loyalty programs. Kasada detects and stops these bots before they can infiltrate the system.
- Neutralizing credential stuffing attacks – By identifying and preventing automated login attempts, Kasada ensures that stolen usernames and passwords cannot be used to take over accounts.
- Thwarting enumeration attempts – Fraudsters who systematically test gift card balances or exploit vulnerabilities in digital wallets are stopped in their tracks.
- Preserving user experience – Unlike traditional fraud prevention methods that introduce friction (such as CAPTCHAs or forced multi-factor authentication), Kasada protects against fraud while keeping the login and checkout experience seamless for legitimate customers.
Without automation, fraudsters lose their ability to scale operations profitably. As a result, they move on to easier targets leaving Kasada-protected businesses with a dramatically reduced fraud burden.
Stay Ahead of Fraudsters with Actionable Insights
Fraudsters show no signs of slowing down their attacks on QSRs. Staying ahead requires real-time intelligence, proactive security measures, and adaptive bot mitigation technology.
Kasada’s 2025 Account Takeover Trends Report provides exclusive insights into the latest fraud tactics, based on deep infiltration into 22 credential stuffing groups. Download the report to understand the emerging trends, uncover new fraud prevention strategies, and protect your login endpoints before fraudsters strike.
The battle against online fraud is always evolving, but with the right tools and knowledge, QSRs can keep their customers safe, their brand reputation intact, and their bottom line secure.
