Category Archives: Theft

by | November 6, 2010 · 8:46 am

Hospitality Industry Crime: Hotel Lobby ATM Machines Can Be “Retrofitted” By Criminals With Card Readers And Cameras To Steal Guest ATM Card Information

“…criminals retrofit ATMs with a card reader that stores the magnetic information of customer cards. They then put that data onto a blank card to make transactions — or cash withdrawals. For withdrawals, they also install a small camera to capture the customer typing in the PIN. Thus, with a small investment of time and equipment, they have everything they need to grab cash from the bank accounts of unsuspecting ATM users…”

According to the BBB alert, “ATM skimmers are close to reaping $1 billion annually from unsuspecting consumers. Javelin Strategy & Research estimates that one in five people have become victims.”

It’s hardly an urban myth. In fact, I think I am revisiting my previous paranoia and considering becoming yet more cautious. Installing a skimming device and a camera is a quick operation, so even the ATM I prefer in the well-lit parking lot of my own bank could fall prey. According to the BBB, in addition to using ATMs that are clean, well lit, and in good repair, I should give it a good visual examination each time I use it. If part of the reader apparatus seems loose, move on — or pull on it and see what happens.

In May, a Florida man did just that. His bank’s ATM looked wrong. He tugged on a part that looked loose — and it came off in his hand. It was a skimming device. His “paranoia” allowed police to shut down that particular operation a mere 10 minutes after it had been set up, thus saving any number of people from being scammed.

For more:  http://www.pcworld.com/article/209959/atm_skimming_cash_machine_paranoia_justified.html

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by | October 30, 2010 · 5:26 am

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

Risk Management

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.

 
 
 
 

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.)

 

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.

Yet, 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.

(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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by | October 20, 2010 · 3:20 pm

Hotel Industry Guest Issues: Hotel Guest Databases Such As “GuestChecker.com” Can Assist Hotel Management In Avoiding “Problem Guests”

“Many hotels now refuse guests based on their perceived or real behavior,” the story says. “For example many hotels in Florida and the Caribbean will not accept reservations for “Spring Break” groups. In Europe, hotels shy away from groups of British Soccer fans.”

Hotels are increasingly interested in swapping information with each other about “bad” guests, just like guests do with “bad” hotels using TripAdvisor, according to Hospitality Business News.

Most hotel guests, naturally, are good.

But when hotels do encounter guests who, for instance, call their credit card company to reverse a charge, assault another guest or even smoke in a non-smoking area, they just might wind up in the type of database maintained by GuestChecker.com.

  • What private information is kept on me?: The database contains a guest’s name, address, and phone number only, as opposed to more personal information such as credit-card number, race or religion. The information is kept in a database with “bank-level security” and is not available to the public.
  • Can hotel managers see the full list?: Hotel managers can’t scroll through the database to see who’s on it. They can only search for specific names and receive a “Match” or “No Match” result.
  • Is this a blacklist?: The company doesn’t call the database a “blacklist” because members “do not have the ability to advise other accommodation providers to refuse service for a guest.” It’s designed to help the next hotel “make an informed decision on how to best prepare for that guests arrival.”
  • What offenses land me on the list?: The company tracks five categories of behavior, with the worst being stealing, assault and non-payment. Lesser offenses would include actions such as smoking in non-smoking areas or using facilities such as the swimming pool or tennis court after hours. “Someone who accidentally knocks over a lamp and offers to pay for it should not be placed in the same category as someone who purposefully trashes a hotel room,” the company says.
  • Who reports me? One person per company or hotel can report a guest for an offense, and GuestChecker.com requires that person be a senior manager. “This stops any malicious reporting by the night watchman, for example,” the company tells Hospitality Business News.
  • How long will I be on the database?: A person could stay on the database for as long as four years.

    • For more:   http://travel.usatoday.com/hotels/post/2010/10/hotel-blacklist-how-do-hotels-define-a-bad-hotel-guest/127726/1

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    by | October 14, 2010 · 6:24 pm

    Hospitality Industry Security Risks: Arizona City Hotel Ordinance Seeks To Curb Guests Who Pay In Cash And Withhold Registering Name In Attempt To Stop Crime

    The city is advancing a hotel-motel ordinance designed to track who stays in hotels, which police say will drive away prostitutes, drug dealers and other criminals who pay in cash and don’t give their name.

    Police are more interested in patrons who pay by cash or who check in at hotels that don’t require a name, Chief Frank Milstead said. Patrons who check in with a credit card aren’t trying to hide, he said.

    Mesa hotels will likely be forced to ask guests for an ID or some other proof of identity under a push to drive crime out of the city’s hotels.

    The city is advancing a hotel-motel ordinance designed to track who stays in hotels, which police say will drive away prostitutes, drug dealers and other criminals who pay in cash and don’t give their name.

    Police say other cities have fought crime with similar rules, but technology is posing a challenge as the city drafts an ordinance that requires a hotel to see a guest’s ID, verify license plate numbers and keep records for a year.

    Many hotels are converting to paperless registration, so it’s possible for guests to check in, pay by credit card and get a key without interacting with a hotel employee. Hotels don’t want to burden guests with showing an ID when a swipe of a credit card will identify who is checking in, said Robert Brinton, president of the Mesa Convention and Visitors Bureau.

    “We don’t want them to say it’s a hassle staying in Mesa,” Brinton said.

    Police are more interested in patrons who pay by cash or who check in at hotels that don’t require a name, Chief Frank Milstead said. Patrons who check in with a credit card aren’t trying to hide, he said.

    “Those aren’t the people we’re looking for,” Milstead said.

    The city’s Public Safety Committee agreed to move forward with the rules on Thursday. The proposal stems from police statistics in 2009 that showed 6 percent of all warrant arrests and 4 percent of all drug arrests were at hotels and motels. Just 10 hotels accounted for 49 percent of the warrant arrests and 64 percent of drug arrests. Police say regulation will greatly reduce the time they spend at hotels and allow them to fight other crime.

    A hotel-motel review board would oversee the rules, with some members being nominated by the hotel industry and some by the city. Hotels that don’t collect IDs and keep the information for a year could face fines of $250 to $2,500.

    Hotels support the rules, but say the ID issue needs to be resolved so it’s possible for guests to check in without showing an ID to a hotel when their identity has been revealed through a credit card payment. Also, Brinton said the six-page ordinance could probably be thinned to two pages to make the rules simple.

    For more:  http://www.eastvalleytribune.com/local/article_cdd2a84c-d7e3-11df-a6e4-001cc4c03286.html

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    by | October 4, 2010 · 6:24 am

    Hotel Theft Risks: Florida Law Protects Hotel Ownership From “Most Liability” But Continued Guest Loyalty Demands A Secure Premises

    “…A… Naples, FL couple’s plans were shattered…when their motel room was burglarized shortly after they checked in and went to dinner. Everything of value — including electronics, cash, a designer purse and sunglasses, theme-park tickets, a passport, checks and Social Security cards — was gone when they returned…”

    They… filed a police report and demanded reimbursement from the motel for the $5,200 loss, but it was denied. A Florida law protects operators of public lodgings from most liability. Even when a hotel is negligent, a guest cannot recover more than $500 in most cases and $1,000 for jewelry or cash left with the hotel for safekeeping.

    In Orlando, where tourism is the engine that drives the economy, hoteliers are well aware of the need to protect their guests as much as possible, said Rich Maladecki, president of the Central Florida Hotel & Lodging Association.

    Most hotels have full-time security staff and work with law enforcement to root out problems, he said. Look for hotels with good lighting in hallways, at entrances and in parking lots, experts caution.

    For more:  http://www.orlandosentinel.com/features/law/os-law-and-you-hotels-tourist-rights-20100923,0,6507664.story

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    by | September 28, 2010 · 5:50 am

    Hotel Industry Security Risk Management: Hotel Surveillance Systems Used For “Outsider” And “Insider” Threats As Video Systems Perfect “Facial Recognition” Systems

    “A homeless person was trying to sneak into the hotel, and we got a shot of him and put it in the system,” explains John Alan  Moore, the hotel’s director of security and life safety, by way of example. When the video system picked him up trying to enter the hotel again, the system sent off an alert, so security might escort him off the property.

    “…the hotel isn’t just monitoring for potential outsider threat; it’s also keeping an eye out for rogue insiders, too.The hotel is using facial recognition to monitor employee behavior, paying particular attention to any former employees who leave on less-than-pleasant terms. All employees are informed that video monitoring of them takes place…”

    As open buildings, hotels are typically on guard for any signs of trouble. So it’s no surprise that the downtown Hilton Americas-Houston just upgraded its video-surveillance system, installing one based on 3VR Security’s digital recorder platform for the sake of efficient retrieval of video footage for research.

    Americas-Houston’s new networked digital-video system also includes facial recognition capability so Hilton can input a digital facial image that can send out an alert related to that individual if picked up by the video surveillance cameras.

    But the hotel isn’t just monitoring for potential outsider threat; it’s also keeping an eye out for rogue insiders, too.The hotel is using facial recognition to monitor employee behavior, paying particular attention to any former employees who leave on less-than-pleasant terms. All employees are informed that video monitoring of them takes place.

    The video system monitors the areas where employees come to punch into time clocks in order to verify the person’s identity. But perhaps more significantly, the facial recognition system is used to watch for any suspicious activities of employees or former employees.

    “If someone leaves under bad conditions, we set up alerts for that,” Moore says. If the former employee suddenly showed up at the hotel, the video surveillance system would send out an alert.

    In any serious cases related to any trouble, the video surveillance footage is stored and can be e-mailed to insurance carriers or the local district attorney. The system has 1TB each of storage and backup and only saves movement in clips.

    The video surveillance system is used far more often for examining more mundane problems, such as when a guest complains of misplacing an item or wondering where the valet is. And the hotel isn’t doing facial recognition of its guests — though it would be nice to know whenever a top celebrity might walk through the door.

    Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/09/27/urnidgns852573C400693880002577AB003BA3C6.DTL#ixzz10pcTDCVe

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    by | September 23, 2010 · 1:56 pm

    Hospitality Industry Security Management: Hotel Surveillance Cameras In Garage And Parking Areas Can Assist Police And Deter Crime At Properties

    Surveillance cameras in the hotel captured the suspect’s image walking through the hotel’s garage and up a stairway in the hotel. He is described as a black male, about 5-foot-10, weighing about 200

    Surveillance cameras in the hotel captured the suspect’s image walking through the hotel’s garage and up a stairway in the hotel. He is described as a black male, about 5-foot-10, weighing about 200 pounds and estimated at 25-35 years old.

    pounds and estimated at 25-35 years old.

    Police are searching for a man who entered an apartment at the Alexandria Hotel in the early morning of Sept. 21 and stole cash, credit cards and laptops from the couple who live in the unit.

    The married couple was awoken when the apartment’s main room lights were turned on at about 4 a.m., apparently by the suspect who entered the unlocked unit. The suspect then entered the bedroom wielding a knife, Lt. Paul Vernon said. The victims agreed to cooperate with the suspect, and gave him their ATM access codes.

    “Most burglars go out of their way to avoid confrontation,” Vernon said. “This suspect was not afraid of running into his victims, and perhaps, intended to all along. That makes him more dangerous.”

    Police use the phrase “hot prowl” to refer to robberies or burglaries that take place while victims are present.

    Based on the captured surveillance image, police are hoping someone will recognize the suspect and contact detectives. Vernon said that investigators are currently working with staff at the hotel, at 501 S. Spring St., to determine whether the suspect was possibly a resident.

    “We hope someone will recognize him so we can arrest him before he hurts someone,” Vernon said.

    Anyone with information on this crime is urged to call Det. Alfredo Rasch at (213) 972-1245. Anonymous tips can be called into Crimestoppers at 800-222-TIPS (8477), or by texting 274637 (C-R-I-M-E-S) with a cell phone. All text messages should begin with the letters “LAPD.”

    For more:  http://www.ladowntownnews.com/articles/2010/09/23/news/doc4c9b8e5aeb21d597761290.txt

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    by | September 17, 2010 · 9:26 am

    Hotel Industry Security Risk Management: Hotel Management Can Limit Guest Theft Liability By Maintaining Room Locks, Posting Legal Notices, And Keeping Back And Side Entrances Closed And Locked

    Security expert Chris McGoey of  CrimeDoctor.com defended the hotel’s security practices with one exception, the back door not requiring a key card to open. He says that if the victims’ story is true, it’s quite possible the theft was committed by another hotel guest.

    Gallagher says he’s considered suing the hotel, but under state law, the hotel would most likely not be liable for the lost belongings because it provided locks for the suite and likely posted the various required legal notices inside of it.

    As was later reported in the Chicago Tribune, the Gallaghers claim that when they went out for coffee on the second morning of their stay (as the Bruners slept soundly in another of the suite’s rooms), the suite was burglarized, resulting in the loss of $2,000 in valuables, including purses, wallets, cameras, cell phones and luggage.

    Both couples blame the hotel’s lax security for allowing the theft to happen. But Lawrence Duffy, the hotel’s general manager, says the victims told him the break-in happened after they left their door propped open, an allegation the victims deny. He says the hotel rarely has problems with crime.

    For more:   http://www.milwaukeenewsbuzz.com/?p=254429

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    by | September 9, 2010 · 3:46 am

    Hospitality Industry Information Security: The Key To Cyber-Security Is Adopting Encryption AND Tokenization, But Payment Processors Must Adopt Standards First

    “Encryption is a process that jumbles personal data into unreadable letters and numbers every time a credit card is swiped….

    …Any info about that credit card going forward … none of the credit card information is stored, it’s the token that is stored.”

    “Encryption fundamentally is a math algorithm, but it’s a very complicated math algorithm,” Roman said during a recent telephone interview. The information can only be deciphered with a key.

    “When an encrypted signal is sent to the intended party, the intended party’s encryption has a key to decrypt and read the message and display it on the screen in readable alpha numerics,” Roman said. “It’s built into the receiving end of each encryption software.”

    Encryption jumbles information as it’s transmitted from one system to the other, but it doesn’t necessarily account for data that’s being stored. That’s where tokenization comes in, said Chainrai Waney, an IT consultant who’s worked in data center operations for more than 25 years.

    When that card is swiped there’s some sort of a front-end application that generates a token (a line of random numbers) that has nothing to do with that credit card number,” he said. “Any info about that credit card going forward … none of the credit card information is stored, it’s the token that is stored.”
     
    A token is a globally unique identifier, generated randomly, and it only has meaning to the sender who provides it and to the processing center that’s purchased it, Roman said.

    Noble has yet to adopt tokenization, Garrido said. The company is waiting for payment processors to make the next move.

    “They’ve talked about being able to take the data out of the property,” he said. In other words, the processing companies would store the data and send a token back to vendors. No definitive solution has yet been approved, however.   ‘

    For more:  http://www.hospitalitynet.org/external/4048209.html

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    by | August 30, 2010 · 7:59 am

    Hotel Industry “Art Insurance” Issues: Hotels Are Increasingly Hanging “Real Artwork” In Lobbies And Hallways To Please More Discriminating Clientele

    “Hoteliers are not only trying to come up with a theme or a style that attracts customers, but they are approaching it in a much more professional and involved way,” said Sean Hennessey, chief executive of Lodging Investment Advisors, a consulting firm in Valhalla, N.Y.

    “It used to be that you could get away with just slapping something up in the lobby,” he added, “but more and more customers are looking and evaluating it much more closely.”

    For the James, meeting that demand has meant trying to reflect the artistic microclimate of SoHo. Though many of the artists who once made the area a creative mecca have fled, an emerging art scene is still represented through nonprofit institutions there that support artists and show their work.

    Denihan Hospitality Group, which is developing the hotel, operates another James Hotel in Chicago that is also dedicated to emerging art. At the Surrey, one of its New York hotels, work by established names like Jenny Holzer, Claes Oldenburg and William Kentridge nods to its location on East 76th Street, near major art showcases like the Whitney Museum of American Art.

    For more:   http://www.nytimes.com/2010/08/30/nyregion/30hotelart.html?src=me

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