Category Archives: Crime

Hospitality Industry Employee Update: “Police Arrest Two of Weld County’s Most Wanted After Hotel Employee Recognized Duo From Photos Aired on News”

“…When the couple tried to check into the Best Western Brighton Inn, 15151 Brighton Road near U.S. 85, an employee recognized them from the photos and immediately called the Brighton Police Department…”Image

“…Montiel and Ureste — who also go by Destiny Lucero and Danny Montiel, respectively — were wanted in Weld County for multiple cases of identity theft, criminal mischief and failure to appear for court dates…”

Police on Wednesday arrested two of Weld County’s most wanted after a vigilant hotel employee recognized the pair from a news broadcast earlier in the evening.

Bianca Montiel, 24, and Christopher Ureste, 25, were arrested on suspicion of entering unlocked vehicles that were parked at day care facilities, stealing credit cards and racking up thousands of dollars in fraudulent charges, said Longmont Police Cmdr. Jeff Satur.

The pair would wait in the parking lot of the centers early in the morning while parents dropped their children off. When parents took the kids inside, the suspects would enter the unlocked vehicles, steal purses and then use credit cards at local retailers.

For more: http://www.greeleytribune.com/news/9875062-113/police-satur-weld-arrest

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Filed under Crime, Employee Practices, Guest Issues, Management And Ownership, Theft

Hospitality Industry Cyber Security Risk: “The Target and Neiman Marcus Breaches: What Hoteliers Need To Know”

“…Most of all, hotel companies need to make a commitment to secure the sensitive information of their companies and their guests, and to seek out informed consultants and advisers.Image Information security is a relatively new and rapidly changing area, and requires specialized knowledge; the investment today can protect a hotel from being front page news — for the wrong reasons — later. Developing a comprehensive information privacy and security program…”

The recent headlines about the Target and Neiman Marcus security breach with customer credit cards highlights a growing crisis that concerns owners and operator of hotels as well as retailers. In this article, Bob Braun, one of the senior members of our Global Hospitality Group® who focuses on data security — when he is not working on hotel management or franchise agreements — gives us some thoughts on what to do about this problem.

The Target and Neiman Marcus problem. When 50 million Americans – more than 15% of the nation’s population – wake up to find that their credit card information was compromised while Christmas shopping, we all take note. When we find out that there were 70 million victims, and the information went far beyond credit card information, and that it wasn’t just one chain, Target, but at least four more, including Neiman Marcus (which estimates 40 million payment card numbers were compromised), we should start to look at our own businesses and procedures to think about how we should plan for and respond to these malicious attacks.

For more: http://www.hospitalitynet.org/column/global/154000392/4063594.html

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Filed under Crime, Management And Ownership, Privacy, Risk Management, Technology, Theft

Hospitality Industry Legal Risks: “Costa Mesa to Slap Hotels With Fines For Too Many Police Calls”

“…Under the ordinance approved Tuesday, motels and hotels could incur fines of hundreds of dollars if they generate above an average 0.4 calls per room per month for recurring “nuisance activities.” Those activities were defined as including persistent noise, gang-related crime,Image illegal use of a firearm, disturbing the peace, illegal use or sale of fireworks, drug possession or sale, underage drinking and loud parties. Violent felonies are also covered…”

Costa Mesa hotels will have to pay a fine if they attract an “excessive” amount of police attention under a new law aimed at properties run by what one City Council member referred to as “slumlords.”

Under the ordinance approved Tuesday, motels and hotels could incur fines of hundreds of dollars if they generate above an average 0.4 calls per room per month for recurring “nuisance activities.” Those activities were defined as including persistent noise, gang-related crime, illegal use of a firearm, disturbing the peace, illegal use or sale of fireworks, drug possession or sale, underage drinking and loud parties. Violent felonies are also covered.

Reporting domestic violence and summoning fire or ambulance services, however, are not considered nuisance activities under the ordinance, the Daily Pilot reported.

For more: http://www.latimes.com/local/lanow/la-me-ln-costa-mesa-hotels-fines-police-calls-20140109,0,1005916.story#axzz2q0jOZxiH

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Filed under Crime, Guest Issues, Maintenance, Management And Ownership, Uncategorized

Hospitality Industry Cyber Crime Risks: Boston Restaurant Group Was Source Of Major Credit Card Payment System Breach; “Sophisticated, Outside Attack”

“…The (restaurant group) believes that it was a sophisticated, outside attack…Boston Police and the US Secret Service are Hospitality Industry Identity Theftinvestigating…This is the second major breach of the Briar Group’s payment systems. In 2009, malware, or malicious software, was apparently installed on Briar’s computers, allowing thieves to access credit and debit card information. The chain paid a $110,000 to the state to settle allegations that it failed to protect diners’ personal information after that security breach.

A local restaurant chain confirmed Friday that its computer systems were breached, putting the credit-card information of thousands of customers at risk, including visitors who attended two major conventions in Boston.

The Briar Group, which owns 10 restaurants and bars in Boston, including two at the Westin hotel connected to the Boston Convention & Exhibition Center, said its computer systems were infiltrated sometime between October and early November. It said customer names, credit-card numbers, expiration dates, and security information were captured from the cards’ magnetic strips.

The company isn’t sure how many customers were affected, but every month thousands visit Briar’s locations, said Diana C. Pisciotta, a spokeswoman for the chain.

The American Public Health Association hosted 13,000 conventioneers in Boston in early November, and the American Society of Human Genetics brought 8,000 attendees to a conference in October. Both reported that hundreds of people reported unauthorized charges on their accounts after visiting Boston.

For more: http://www.bostonglobe.com/business/2013/12/27/local-restaurant-chain-source-data-breach-that-compromised-card-info-conventioneers/wPhKKndyN4hshrU47J2rwO/story.html

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Filed under Crime, Guest Issues, Liability, Maintenance, Management And Ownership, Risk Management, Technology, Theft

Hospitality Industry Crime Risks: Hotels Work With States To Reduce “Sex Trafficking” At Super Bowl Sites; Tens Of Thousands Of Women And Minors Victimized During Annual Event

“…The New Jersey Coalition Against Human Trafficking has taken several steps to raise awareness about the issue, training hotel managers on Child Sex Traffickinghow to detect and address trafficking in their establishments, and holding an informational rally replete with “elected officials, community activists, students, [and] artists.” Efforts like those in New Jersey and Arizona are aimed at duplicating past success at Super Bowl host sites…”

Before Super Bowl XLVI, held in Indianapolis in 2012, efforts from nonprofits and other activist groups helped generate a law making it easier to convict and punish pimps for victimizing people under 16 years of age. Those efforts don’t just fight sex trafficking around the Super Bowl — they also leave in place laws that are effective in limiting the practice long after the game is gone.

The enormity of the Super Bowl provides an ideal setting for traffickers to maximize profits. In Florida, for instance, “tens of thousands of women and minors” were victimized around Miami in 2009. Due to the influx of sports enthusiasts, there are more opportunities for sex solicitation – which pimps capitalize on. Additionally, the number of escort ads multiply closer to game day.

Led by Cindy McCain, the wife of Arizona Sen. John McCain (R), the task force issued 28 recommendations for reducing sex trafficking in the state. The task force, for instance, recommends increased protections for sex trafficking victims who are minors and the recognition of girls as victims in need of help instead of prostitutes. It suggests changing current state law to treat 15-, 16-, and 17-year-old victims of sex trafficking the same way it treats girls who younger than 15. It also suggests increasing penalties for johns and devoting resources to public awareness campaigns to combat the prevalence of sex trafficking.

Anti-trafficking outreach before the annual event is not unique to the Copper State, and advocacy campaigns have produced tangible results around past editions of the Super Bowl. Activists in New York and New Jersey are bracing for Super Bowl XLVIII – which they’ll host in February at New Jersey’s MetLife Stadium.

For more: http://thinkprogress.org/sports/2013/12/12/3050121/combating-human-trafficking-arizona/

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Filed under Crime, Guest Issues, Labor Issues, Liability, Management And Ownership, Risk Management, Training

Hospitality Industry Insurance Risks: Workers’ Compensation Fraud Accounts For 25% Of All Insurance Fraud, Costing $5 Billion Annually

Workers' Compensation Fraud

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by | November 14, 2013 · 9:05 am

Hospitality Industry Employee Risks: Michigan Restaurant Waitress Convicted Of “Credit Card Forgery” After Padding Tips On Transactions; Prior Record For Theft And Larceny

“…(the defendant) was hired as a waitress at Buffalo Wild Wings…on June 19, 2013, she stole from customers by padding the tip amount on Restaurant Employee Theftelectronic receipts…For example, when someone used a credit card to pay for their bill, (she) would change the tip amount when she entered the transaction into the computer…The restaurant received a complaint from a customer, which led to an internal investigation by the business. That initial complaint led to others…”

Kortney Donesia Lewis, a 25-year-old Fruitport Township woman, garnered three prison terms this week for padding her waitress tips at a Buffalo Wild Wings restaurant — crimes committed while she was a fugitive from sentencing for a theft at a Red Roof Inn job.

Lewis also has a previous conviction record of stealing credit cards and larceny in a building in 2009.

Muskegon County 14th Circuit Judge Timothy G. Hicks on Monday, Nov. 4, sentenced Lewis to prison for three terms of between 15 months and 15 years for credit-card forgery as a fourth-time habitual offender. She pleaded guilty as charged Sept. 24.

For more: http://www.mlive.com/news/muskegon/index.ssf/2013/11/ex-waitress_gets_prison_for_st.html

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Filed under Crime, Guest Issues, Labor Issues, Liability, Risk Management, Theft

Hospitality Industry Fire Risk Management: “Security Alert! Check The Security Of Your Hotel’s Knox Boxes Frequently” By Todd Seiders, CLSD, Petra Risk Solutions

Security Alert! Check The Security Of Your Hotel’s Knox Boxes Frequently

by Todd Seiders, CLSD

Check your Knox Boxes! A Knox Box, known officially as the KNOX-BOX Rapid Entry System, is a small, wall-mounted safe-like box that holds building keys for firefighters and EMTs to retrieve in emergencies. In many jurisdictions, the local Fire Department requires that a Knox Box be located outside of your hotel (check with your local Fire Department for requirements; some jurisdictions may not require hotels to have one), for their use only, in the event of an emergency. The Knox Box has a complete set of the hotel’s master keys locked inside this box.

Knox Boxes simplify key control for local fire departments. Local fire companies can hold master keys to all such boxes in their response area, so that they can quickly enter a building without having to force entry or find individual keys held in deposit at the fire station. Sometimes Knox Boxes are linked via radio to the dispatch station, where the dispatcher can release the keys with telecommunication tone signaling over analog phone lines.

Knox Boxes have advantages and disadvantages for both business owners and emergency responders. The main advantage for their use is that they cut fire losses for building owners since firefighters can more quickly enter buildings without breaking doors or windows. The disadvantage of the system is that it provides a single point of failure for security. If the key to a district’s Knox Boxes is stolen or copied, a thief can enter any building that has a Knox Box. Likewise, if the locking mechanism or structural integrity of the box is compromised, a thief can gain access to the keys and hence access to the entire building. For this reason some building owners wire Knox Boxes into their burglar alarm systems so that opening the box trips the alarm, thus negating its use in facilitating clandestine entry.

Knox Boxes are an actual miniature safe designed to withstand tampering and are built in a variety of sizes ranging from a box designed for two keys to one designed to hold hazardous material information and multiple keys. Prices start at approximately $250.00. Most Knox Boxes are mounted onto a wood or steel mounting with the screws or bolts covered.

Todd Seiders Petra Risk SolutionsYet, this does not mean that Knox Boxes are indestructible or cannot be removed from their mounting with force. We have recently seen many of these Knox Boxes forcefully removed from their wall mountings and stolen from the property. In several cases the thieves then returned to the hotel with the master keys and stole items.

In one theft at a hotel the thieves specifically used the master keys to access the storage room for the hotel night audit packets and guest files. The thieves stole hundreds of night audit packets containing the names, addresses and credit card numbers of previous guests. Obviously, hotels can be held liable for breach of guests’ personal information or loss of their credit card data.

So, what should hoteliers do? Secure your night audit packets/files in a secure room that has a hard metal key, rather than a magnetic key card lock. There should only be one or two hotel employees that have access to the night audit storage room, and storage room keys. Secure these files separately, and control all access to them. DO NOT include a key to this storage room in your Knox Box, or on your “master key ring”, or even leave this key unattended in a key box. The night audit file storage room key should be kept separate from all other keys.

As for the hotel’s Knox Box, local ordinances may require that your property have a Knox Box in the event of an emergency. If so, follow these suggestions:

  • Check that your Knox Box is solidly secured to its location, using numerous heavy duty screws or bolts to make it extremely hard to remove.
  • Relocate your Knox Box to a well lit area, and in view of security cameras, if your property has them.
  • Add a visual inspection of the Knox Box to your property inspection form and security tours so it will be inspected on a regular basis. This will let you know in a timely manner if someone has tried to remove it, or has in fact actually removed or damaged. Immediately re-key the entire hotel if the Knox Box is stolen or the keys inside come up missing. 

Pictured above: Here’s what some of the various Knox Boxes look like.

http://www.petrarisksolutions.com/

http://www.petrarisksolutions.com/

(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.)  

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Filed under Crime, Fire, Insurance, Liability, Maintenance, Management And Ownership, Risk Management, Theft, Training

Hospitality Industry Theft Risks: California Hotel Employee Arrested For Stealing $98,000 From Gift Shop

“…Police reported that a 51-year-old female employee at the Hotel Del Coronado embezzled an estimated $98,000 in cash and merchandise from Hotel Employee TheftThe Signature Shop, which sells apparel, gifts, wine and food…over a four-year period…”

An employee signed a confession to taking an estimated $49,000 in cash and $49,000 in merchandise from a gift shop at the Hotel Del Coronado, according to police.

Police said the employee had been taking money from the cash register while working at the hotel on the 1500 block of Orange Avenue over a four-year period from May 2009 to May 2013.

The loss was estimated at $49,000 in cash and another $49,000 in merchandise.

For more:  http://coronado.patch.com/groups/police-and-fire/p/employee-embezzles-98k-from-hotel-del-coronado

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Filed under Crime, Labor Issues, Management And Ownership, Theft

Hospitality Industry Risk Management: “P3 Risk Report – Knox Boxes” By Petra Risk Solutions’ Director Of Risk Management Todd Seiders (Video)

[vimeo http://www.vimeo.com/52470586 w=500&h=281]

P3Petra Risk Solutions’ Director of Risk Management, Todd Seiders , offers a P3 Hospitality Risk Report – ‘Knox Boxes’. 

P3 ( Petra Plus Process) is the Risk Management Division of Petra Risk Solutions – America ’s largest independent insurance brokerage devoted exclusively to the hospitality marketplace.

 For more information on Petra and P3 visit petrarisksolutions.com or call 800.466.8951.

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Filed under Crime, Guest Issues, Injuries, Insurance, Liability, Management And Ownership, Risk Management