Jacksonville Restaurant Loses Over $60,000 Due to Hacked DoorDash Account

Jacksonville Restaurant Faces Significant Financial Loss from Hacked DoorDash Account

Jacksonville, Fla. – The Zheng family, who own and operate Wok House Jax, recently faced a dramatic financial setback when their DoorDash merchant account was compromised, leaving them with more than $60,000 in damages.

The incident took place earlier this year, with Jennifer Zheng, who acts as the spokesperson for her family, explaining that the breach happened in July. The hackers infiltrated their account and changed key details, redirecting funds meant for the restaurant. Despite receiving emails indicating deposits into their account, the family struggled to pay bills, as they did not see the earnings arrive in their bank account.

Understanding the Impact of Technology on Small Businesses

Jennifer described the toll this situation has taken on her family. “My dad was like, ‘This is so hard to pay the workers or keep up with the inventory cost when we don’t have these profits coming into our bank account,’” she stated. The family had to resort to withdrawing money from retirement funds and taking out loans to keep the restaurant operating.

Upon investigating, they suspect that a phishing email requesting account updates may have played a significant role in the hack. When contacting DoorDash for assistance, the family received a response that left them shocked. After a thorough investigation, DoorDash informed them that they would only be reimbursed $3,806.72, which Jennifer described as “disappointing” given the substantial losses.

Advice for Small Business Owners

The incident has prompted cybersecurity expert Chris Hamer to share tips with small business owners on how they can safeguard their accounts. His recommendations include limiting access to merchant accounts, employing strong two-factor authentication, and avoiding storing passwords in easily accessible places.

The Zheng family echoed these suggestions, urging other business owners to monitor their accounts diligently. Kevin Zheng, Jennifer’s brother, emphasized the importance of early detection, suggesting business owners check their information weekly to mitigate risks.

DoorDash Responds to Account Takeover Scam

In a statement to the Zheng family, a DoorDash representative acknowledged that this may not have been a straightforward hack. They referred to it as an “account takeover,” a type of scam where fraudsters deceive victims into sharing sensitive information, thereby gaining unauthorized access to their accounts.

The DoorDash spokesperson reiterated the company’s commitment to enhancing security measures and emphasized the importance of immediate reporting for suspicious activity. They also outlined some warning signs for business owners, such as:

• Misspelled names in emails, such as miswriting “DoorDash.”
• Fake support case numbers that were not requested.
• False narratives suggesting urgent document requests.

Conclusion

As the Zheng family works to recover from this financial blow, they hope their experience serves as a warning to other small businesses about the potential dangers posed by fraud in the digital age. Their story highlights the need for vigilance in managing online accounts and protecting financial information amid evolving threats.