Category Archives: Crime

Workers’ Comp Fraud Prevention: State Of Colorado Amends Bill That Would Restrict Video Surveillance That Is Deemed “Intrusive Or Harassing”

The original intent of the bill was to restrict workers’ comp insurers’ use of video surveillance to only cases where the insurer has a reasonable basis to suspect fraud. It also would have imposed a significant fine on insurers that violated the rule. However, the legislation was amended after lawmakers raised concerns that it would seriously hinder insurers’ efforts to prevent fraud.

The amended version prohibits evidence from being introduced at workers’ comp administrative hearings if it is deemed that the surveillance was intrusive, intimidating or harassing. In addition, the evidence would not be permitted if the administrative law judge finds that the investigator, if questioned, misrepresented himself to the claimant and did not disclose on whose behalf he was conducting the surveillance. The legislation would also require insurers to present the surveillance videos to the claimant’s treating physician for review.

http://www.riskandinsurance.com/story.jsp?storyId=375682191

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Hospitality Industry Risk: Smaller Hotels Reporting An “Epidemic” In Theft Of Flat Screen TV’s From Rooms Prompting Many Operators To Install Camera Systems

The theft prompted him to take action, investing in a $1,500 camera system to monitor the walkways outside rooms and, hopefully, he said, act as a deterrent to other would-be thieves.

(From a ReporterNews.com article)   Theft is “frequent enough we have to make a large order every month for linens and supplies we shouldn’t have to,” said Jo Ann Schibi, manager of the MCM Elegante Hotel. “It’s the hotel business. It’s been like this forever.”

Perhaps, but missing televisions have upped the ante for some victimized hotels in Abilene.

Dasi Reddy, owner of the Knights Inn Civic Plaza Hotel downtown, said he’s had six or seven televisions taken from rooms in the past 14 months.

At Motel 6 just west of town and near Interstate 20, eight flat-screen televisions were reported stolen March 7 from an unoccupied room, just two days after a 32-inch television had been reported stolen from a hotel room.

Local staff at the Motel 6 declined to comment, and police were unavailable Friday to discuss the case.

But TV thefts were described as “a new epidemic for us” by Laura Rojo-Eddy, director of corporate communications for Accor North America, the parent company of Motel 6.

The chain began renovations in the second-half of 2008 that included the addition of flat-screen televisions to rooms. With the flat-screen televisions, however, more thefts have followed, said Rojo-Eddy.

“I guess they’re smaller and easier to carry,” said Rojo-Eddy. “The industry kind of has had a problem to take care of them.”

For hotel operators, the losses hurt the bottom line during an economic recession that has included a sharp decrease in travel spending.

With an insurance deductible that doesn’t cover a $200 loss, Reddy said he mainly has paid for the replacement televisions himself.

Several items — including a television, microwave and ice machine — turned up missing March 12 after the departure of guests staying through a church outreach program, Reddy said.

“We want to help them,” said Reddy, who charges churches a reduced rate when they are helping house homeless or other displaced people. The church sponsoring the stay has been able to return some of the missing items to the hotel, he noted.

http://www.reporternews.com/news/2010/mar/19/stolen-tvs-trouble-hotels/

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Sexual Harassment In The Hospitality Industry: Restaurant Operators Should Have Backgrounds Checked Closely To Prevent Harassment Of Gays

The hospitality industry is calling for people who operate restaurants to be subjected to more stringent vetting following the case of a restaurateur fined for sexually harassing a gay worker.

(From a TVNZ.co.nz article)   Hospitality workers made up 10% of workplace sexual harassment complaints to the Human Rights Commission in the last two years and in the latest incident the Employment Relations Authority found an Auckland restaurateur guilty of sexually harassing an employee.

Graeme George Edwards has been fined $15,000 in damages and lost pay after harassing, then sacking, a gay employee at his Mexican restaurant.

Hospitality insiders say it’s just the tip of the iceberg and the behaviour is widespread.http://tvnz.co.nz/national-news/harassment-rife-in-hospitality-sector-3423490

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Hotel Industry Safety And Surveillance: New Technology From 3VR Security Increases Safety For Hotel Guests

“The system will also allow us to do things we never thought about.” Just some of the uses that are being tested at Hilton Americas-Houston include counting arriving vehicles to determine peak times for staffing and monitoring any vehicle accidents in the garage area to provide guests with needed information for their insurance purposes. Ltd.

(From SecurityInfoWatch.com article)  In order to provide guests with the ultimate in security and customer service, Hilton Americas-Houston, the city’s largest hotel, has enhanced their surveillance systems with cutting edge technology from 3VR Security, Inc. The 3VR platform makes it possible for the property to find relevant surveillance footage in seconds, rather than hours, allowing the hotel to utilize the technology for multiple purposes.

As the number-one convention hotel in the city, Hilton Americas-Houston is the first hotel to utilize 3VR’s facial recognition, license plate recognition and advanced motion analytics to provide the ultimate in guest security. In the hotel security business since 1990, John Alan Moore, director of security and life safety for Hilton Americas-Houston says “I’ve never seen anything that is able to do the things this technology does; it’s light-years ahead of the system we previously used.” In addition to providing the ultimate in security for their guests, the hotel is also able to utilize the 3VR system to ensure the best possible customer service. Hilton Americas-Houston is now able to help guests locate lost possessions with the system’s color, directional and object search capabilities. A guest’s misplaced suitcase can be found almost instantly by following the piece using a search based on color and object, from the time it enters the hotel all along its path throughout the building. With over 7,000 lost guest items per year in lost and found, the system will significantly increase the hotel’s ability to satisfy the customer on even higher levels. Another use for the system that Hilton Americas-Houston has found useful is recognizing repeat customers. According to Moore, “We will be able to tie in with front office systems to flag our Gold Card members in order to be able to blow them away with service. This is another tool to be used to keep Hilton as the leader in the industry.” With 90% accuracy, the system registers few false positives, even picking up good facial info on cameras not specifically designated as facial-recognition. On a humorous note, the system is so sensitive that it has recognized faces that were not actually guests; they were photos of the t-shirts of guests. Moore said “President Obama made an appearance on our skywalk, on a guest’s clothing. That’s how bad the system wants to recognize a face.” This high-sensitivity makes the system a most useful tool for the property, providing the ultimate in guest safety and security.

Moore stated, “The system will also allow us to do things we never thought about.” Just some of the uses that are being tested at Hilton Americas-Houston include counting arriving vehicles to determine peak times for staffing and monitoring any vehicle accidents in the garage area to provide guests with needed information for their insurance purposes. Ltd.

http://www.securityinfowatch.com/node/1315210

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Hotel Industry Risk: Cybercrime Has Targeted Hotel Wireless Networks To Steal Credit Card Information

Travelers staying in hotels might want to carefully check their credit card statements for fraudulent charges in the months following the stay. According to recent reports, cybercriminals across the globe have a new favorite target: the wireless networks of hotels.

(From a CreditCardGuide.com article)  While financial services companies used to receive the bulk of hacker attacks, last year hotels emerged as the new choice target among hackers-out of 218 breaches in a total of 24 countries, 70 of those breaches took place through hotel networks, according to a report by security firm Trustwave SpiderLabs.

Internet security experts believe that hotel hacking attacks started to catch on at the end of 2008, when a sophisticated cybercrime organization broke into a hotel network to steal information and discovered just how easy it was to do. Even larger hotel chains are often poorly protected against cybercrime dangers, making it very easy for hackers to gain access to one computer and then use it as a doorway into the hotel’s central computer system, from where they can lift the credit card data of guests staying at the hotel along with other sensitive information.

Once hackers have retrieved the data they need, the cybercriminals waste no time turning the lifted credit card information into profit. Using high-tech equipment, hackers can easily clone credit cards, complete with a magnetic strip containing the stolen data. The cards are indistinguishable from the real thing and can be used in physical stores leaving behind few traces that can be used to track down the fraudsters.

It often takes hotels months before they notice the hack-last year, the average time between a security breach and discovery was over five months. In many cases, it is credit card companies, as opposed to the hotel chain, who first notice the unauthorized activity. Long after hackers make off with their bounty, credit card companies triangulating fraud reports discover that multiple individuals affected by fraud stayed at a specific hotel just prior to the credit card theft.

As awareness of hotel data breaches rises, many of the larger chains are stepping in to step up security. However, consumers should remain on alert: hacker’s aren’t about to give up this new lucrative target. Just this week, Wyndman Hotels, which operates chains including Days Inn, Ramada, and Howard Johnson reported its third breach in the past 12 months.

If you travel often or frequent hotels, make sure to monitor your credit card accounts. If strange activity shows up, contact your card issuer immediately. While credit card companies, ultimately, are on the hook for fraudulent charges, you do have to report unauthorized activity, and catching credit card fraud early can save much time and hassle down the road.

http://www.creditcardguide.com/creditcards/travel/staying-hotel-watch-credit-cards-231/

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Hotel Industry Cybercrime: Los Angeles Westin Bonaventure Hotel Disloses Credit Card Security Breach At Four Restaurants

According to Westin, its four restaurants – Lake View Bistro, Lobby Court Bar, Bonavista Lounge, L.A. Prime – along with its valet parking operation may have suffered a data security breach between April and December last year.

(From a InfoSecurity-us.com article)  In further proof that the hospitality industry is becoming a prime target for hackers, The Westin Bonaventure Hotel and Suites has admitted a likely data security breach.

According to a statement issued by Westin, compromised data may include names printed on customer credit or debit cards, card numbers, and expiration dates.

“Guests who used or visited the affected businesses during the eight month-period and who used a credit or debit card to pay their bills directly to the restaurants and valet parking might have had such information compromised and are encouraged to review their statements from that time period,” Westin said.

Although the company gave advice on how to place a full alert on a credit file, it did not offer any credit protection services for potential victims in the statement.

According to the 2010 Global Security Report from Trustwave, hospitality companies became the most breached sector in 2009, representing just over a third of all breaches. That said, the majority of these cases stemmed from a single site breach, the company said at the time.

However, hospitality breaches appear to be mounting. Wyndham Hotels and Resorts also suffered a security breach between late October last year and January. It is not clear whether the Wyndham hack was the single site breach reported by Trustwave, but the hospitality firm said that a hacker went through centralized network connections. “The hacker was then able to access and download information from several, but not all, of the WHR hotels and remove payment card information of a small percentage of our WHR customers,” Wyndham Hotels and Resorts said at the time.

Westin said that although customers of its restaurants and valet operation may have been compromised, the hacker did not gain access to customer card data stored in the system that stored credit card information for its hotel guests.

The Westin Bonaventure Hotel and Suites is independently owned by Today’s IV, Inc. and operated by Interstate Hotels & Resorts, Inc. under a license issued by Westin Hotel Management.

http://www.infosecurity-us.com/view/7881/westin-is-latest-hotel-to-be-hit-by-hackers/

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Hospitality Industry Legal Issues: Medical Marijuana and Non-Smoking Hotels

 I recently had one of my hotels call me about a guest who was burning incense in his guestroom, while he was staying at the hotel. After the guest checked out, he was charged the Hotel’s “no smoking fee” of $250, as the Hotel was a non smoking hotel.

The guest immediately challenged the no smoking fee, and claimed he was burning the incense for “medical” reasons, it was “aroma therapy”. The Hotel asked the guest for a note from his Doctor prescribing the “aroma therapy” and guess what…the guest produced a Doctor’s note. It was a real prescription, from a real Doctor. So, that begs the question….does the American’s with Disabilities Act (ADA) apply? Do you as an Innkeeper have to allow aroma therapy or medical marijuana use in your non smoking hotel?

The answer is: We’re not sure yet…..

I took this question to the Hospitality Law Conference, which is held in Houston every February. The Hospitality Law Conference is attended by 400 hospitality Attorneys. These Attorneys come from all the major hotel brands, major hotel management companies and includes hospitality educators from all of the major hospitality Universities nationally. I searched out the best hospitality legal minds from our industry to discuss this issue with them.

I was surprised to learn there was no general consensus on how to handle medical marijuana /aroma therapy and the ADA, at hotels. There is no known “case law” on this issue yet, and I received a wide variety of legal opinions on how to handle the medical marijuana dilemma. I have summarized below, the “best practices” for handling medical marijuana / aroma therapy at your Hotel, based on discussions I had with the hospitality industry legal experts:

  1. Place marijuana smokers in “smoking rooms” when available. If you receive a guest complaint of marijuana use in the hotel, you should investigate. If you find the marijuana smoker, ask them for their medical prescription, or State ID card, for legal medical marijuana use. If they have the proper paperwork, allow them to continue in the smoking room (if you allow smoking). If they don’t have proof of the legal use of marijuana, ask them to stop, call the Police, or handle it according to your management guidelines.
  2. If you are an all “No Smoking” hotel, then guests using medical marijuana should be handled the same as cigarette smokers. They must leave the building to smoke. They are no different than cigarette smokers. If they smoke in their guestroom and you have the proper “no smoking” notifications and signage, then charge them your normal smoking fee. Again, you treat them the same as a cigarette smoker. I would recommend if you have “no smoking” signage in the rooms, that you add the words “this includes medical marijuana” on the signs at your next convenience.

 *****Note****, number 2 above applies to guests who are “mobile” and who can easily walk around, use the stairs and elevators, and have no physical restrictions. Most of the legal experts I spoke to agreed, that if a guest has limited mobility, due to a disability etc, then we should handle this guest differently. If the guest cannot easily exit and enter the hotel to smoke their medical marijuana, and they insist that the marijuana is part of their treatment for their disability, then you should allow them to smoke in their non-smoking room. Under these circumstances, the legal experts felt the disabled guest could fall under the ADA laws, due to their limited mobility etc. You should not charge them a “smoking fee”.

These suggestions are based on the opinions of the “best of the best” hospitality legal experts. As you know, the medical marijuana issue is being debated, legalized and defended all over the United States. Call your local Police or Sheriff departments and find out what your local and State laws are regarding medical marijuana. You should manage the guests at your hotels according to your specific laws.

Remember, you also have the right to ask a guest who is smoking marijuana to stop, unless they have a legal prescription, from a real Doctor, to be using the medical marijuana. If the guest does not have the legal paperwork to smoke marijuana, you can make them stop. Call the Police or Sheriff for assistance if necessary. You can use the internet to “google” a Doctor’s name or clinic, if you want to independently verify the validity of a guest’s medical marijuana use.

I’m sure somewhere in the United States in the near future, we will see some “case law” on the use of medical marijuana, the ADA, no smoking businesses and related issues. Until then, I hope these “best practices” help.

(Todd Seiders, CLSD, is director of risk management for Petra Risk Solutions, which provides a full-range of risk management and insurance services for hospitality owners and operators. Their website is: www.petrarisksolutions.com. Todd can be reached at 800-466-8951 or via e-mail at: todds@petrarisksolutions.com.)  

Feb 2010

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Hospitality Industry Risk: Cybercrime Is Targeting Hotels And Resorts As Credit Card Information Is Relatively Unprotected

(From a BlackBookMag.com article)  According to Nicholas Percoco, a cybersecurity researcher for the security firm Trustwave, “The hospitality industry was the flavor of the year for cybercrime.”

In 38% of the security breach investigations Trustwave performed last year, hotels and resorts were the victims. That’s way up from 2008, when the hospitality industry wasn’t nearly so trendy for identity thieves and there were hardly any incidents.

Hotels and resorts tend to have a lot of data–like your credit card info–that is relatively unprotected, making them pretty dreamy for hackers. Last year, both Radisson and Wyndham Hotels reported hacking incidents, and who knows what other hotels got hacked but didn’t report it. So, fork over your personal credit card with care at check-in, or maybe use this as an excuse to charge any and all hotel stays on the company card.

http://www.blackbookmag.com/article/your-hotel-stay-stole-your-credit-card/15885

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