Category Archives: Theft

Hospitality Industry Crime Risks: New York Hotel Thieves “Smash Jewelry Cases” And Walk Out With Over $160,000 In Watches And Diamonds

“…the hotel lobby has 18 display cases…the suspects chose to smash the one filled with jewels from Jacob & Company, a designer favored by celebrities from Jay-Z to Jennifer Lopez to former New York Mayor Rudy Hotel CrimeGiuliani…(police) released images of the suspects from a surveillance camera late Sunday night, and confirmed that police are still looking for them. The men were last seen heading east on 57 Street after the heist…”

It was nearly 2 a.m. on Saturday when two men smashed a display case full of jewelry in the Four Seasons Hotel in midtown Manhattan. The men walked out of the hotel with two high-end wrist watches, a diamond chain and a pendant — together worth more than $160,000 — according to the New York Police Department. No one stopped them.

New York City hotels appear to be an easy target for criminals looking for a quick, and valuable, steal. Last year, a New Jersey man was sentenced to one-to-three years in prison for walking out of the Chambers Hotel in June 2011 with five paintings, each valued at $1,800, stuffed in a canvas tote bag. Two weeks later, the same man pilfered a $350,000 sketch by the highly regarded modern artist Fernand Leger from the Carlyle Hotel.

This is the first time a theft like this has occurred at The Four Seasons in its 20 years, according to Tiffani Cailor, a hotel spokeswoman.

“This is an unusual incident,” she said. “We are very concerned and upset over the theft.”

For more:  http://money.cnn.com/2013/02/18/news/jewelry-heist-four-seasons/

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Filed under Crime, Liability, Pool And Spa, Risk Management, Theft

Hospitality Industry Information Security Risks: Hotels, Restaurants And Retailers Accounted For 78% Of “Data Breaches By Cyber-Criminals” In 2012; “Weak Or Guessable Passwords” Is Most Common Vulnerability

“…Almost one-third of all victims had critical systems administered by a third party…Attackers had no trouble exploiting that weakness, with vulnerable remote-access systems accounting for the method of entry in 47 cybercrime in hotelspercent of the cases…in most cases, users – not software vulnerabilities – were to blame. Almost 90 percent of systems had weak or easily guessable passwords, with “Password1″ continuing to be the most common, according to Trustwave’s report…”

An analysis of breach data for 2012 found that retailers and the hospitality industry continued to command the most interest from cyber-criminals, accounting for 78 percent of the breaches documented by security services firm Trustwave.

The businesses are typically easy targets, having outsourced the administration of important servers and business data to firms that focus more on keeping the systems functioning than on security, says Christopher Pogue, director of digital forensics and incident response for Trustwave’s SpiderLabs.

“An integrator may have 1,000 customers and may do remote administration for all of them using, not 1,000 passwords, but maybe two or three,” Pogue said. “That leaves a vulnerability that can be exploited by attackers.”

For more:  http://www.techweekeurope.co.uk/news/retailer-hotel-crime-107589

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

Hospitality Industry Theft Risks: Hawaii Hotel Employee Arrested For Stealing $11,000 Worth Of Jewelry And Goods From Luggage In Storage Room

“…a review of video surveillance of the storage room revealed that Bueno allegedly entered into the storage room through the service elevator, picked up and concealed the bags within his work cart and exited the hotel securitystorage room…a few minutes later shows (him) allegedly reentering the storage room and placing the bags back on a bellman cart, then exiting again through the service elevator…”

An employee from a hotel in Wailea was arrested on Monday on suspicion of theft after a couple visiting from Maryville, MI, reported more than $11,000 in jewelry and other goods missing from their bags after check-in, police said. Maui police arrested resort houseman, John Bueno for alleged second degree theft in connection with the incident.

According to police reports, the couple arrived at the hotel at around 1:20 p.m. on Monday Feb. 11, checked their bags with a bellman, and proceeded to the pool area to wait until their room was ready.

A few minutes later, police say the female visitor returned to the bell desk and inquired about one of the bags to retrieve an item from within. A check of the storage room found all of their bags missing, and a search of the area by security personnel and hotel managers turned up with negative results.

A few minutes later, another check of the storage room revealed that the bags were returned; however, upon checking each bag, it was learned that various pieces of jewelry and a camera totaling $ 11,100 were missing, said Maui Police Lt. Wayne Ibarra.

Bueno was placed under arrest later that afternoon, and posted bail, which was set at $1,000. He is scheduled to appear in court at 10:30 a.m. on March 14, 2013.

For more:  http://mauinow.com/2013/02/14/wailea-hotel-worker-arrested-in-theft-case/

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

Hospitality Industry Security Risks: Hotels Should Employ “Motherboard Fix” To Make Electronic Door Locks Secure From Hacking And Break-In

“It’s the older Onity locks that are subject to hacking,” Seiders said. “With the old locks, which were the best at the time, the encryption code that authorizes the lock to open has been installed on all of those individual Onity Electronic Locklocks. The hacking device, when it’s plugged into the lock, fools the lock into thinking it’s an authorized programmer. The newer locks don’t have the encryption code in each one; the code is issued at the front desk.”

Following a robbery at a Houston hotel in which thieves exploited security flaws in Onity locks first revealed at the Black Hat conference in July, Hotel Management spoke with Todd Seiders, director of risk management at Petra Risk Solutions and former director of loss prevention at Marriott, for tips on how hoteliers can keep their rooms secure.

“[Onity] immediately started offering the caps and screens to block the port that causes the vulnerability, but I don’t think that’s a very valuable option, because if you block these terminal ports and you have an emergency in the room and the lock has failed, you have to be able to plug in the portable programmer or you’ll have liability issues,” Seiders said. “The thing to take advantage of now is the motherboard switch out. If you mail it in within a reasonable amount of time they’ll replace it for free. The motherboard fix, that’s what these hotels should be doing.”

While Seiders noted that the recession has meant less money available for full-time security staff and new equipment like cameras, he emphasized the importance of staff training in hotel security. “My advice is to go walk the halls and if you see a person standing in the hallway go and look at him for 60 seconds. He’ll either go to a room, or, if not, approach him and say ‘what’s up,’ find out if you can help him. Customer service is the best security.”

Seiders also pointed out that the newer models are not as vulnerable to hacking.

In a statement from Onity, the company said, “Over the next several weeks, we will ensure all hotel properties in our database receive the mechanical solution. These mechanical caps and security screws block physical access to the lock ports that hackers use to illegally break into hotel rooms. The mechanical solution remains free of charge to customers. Technical solutions vary depending on the age, model and deployment of locks at properties.”

For more: http://www.hotelmanagement.net/operations-management/keep-your-rooms-secure-from-door-lock-hackers

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

Hospitality Industry Theft Risks: Pennsylvania Restaurant Manager Charged With Stealing Over $160,000; Made “Unauthorized ATM Withdrawals, Credit Card Purchases”

“…a certified public accountant’s review found that (he) made a string of unauthorized ATM withdrawals, unauthorized credit card purchases and unauthorized check card purchases totaling $163,601 from the employee theftbusiness accounts of Cosmopolitan…in addition to dinner cruises and visits to a strip club, (he) allegedly spent the money on household items at a retail store…”

A former general manager of Cosmopolitan in Allentown allegedly stole $163,601 from the restaurant and spent it on things like dinner cruises and visits to a strip club.

Cosmopolitan opened in October 2010. Fortunato was hired in September 2010 and promoted to general manager about a month later, District Attorney Jim Martin’s office said today in announcing the charges.

Fortunato’s responsibilities included overseeing the daily operations of the restaurant, handling employee payroll, paying bills to suppliers and collecting receipts for the business.

Fortunato also was given check-signing authority for the restaurant’s various bank accounts and ATM/debit card account at Wells Fargo Bank, a Visa card, an American Express account and access to cash receipts at the restaurant, Martin’s office said.

His responsibilities included using any of the accounts, but only for operations of the restaurant, according to the district attorney’s office.

Last June, Cosmopolitan co-owner Myron Haydt was reviewing the restaurant’s financial records and found a series of suspected unauthorized purchases by Fortunato, according to the statement.

For more: http://www.lehighvalleylive.com/allentown/index.ssf/2013/01/former_manager_of_allentowns_c.html

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Filed under Crime, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management, Theft

Hospitality Industry Crime Risks: Washington Hotel Room Used By “Major Identity Theft And Forgery Ring”; Police Seize Laptops, Lamination Machine And Bags Of Stolen Mail

“These labs tend to be mobile…they go from hotel to hotel…the room contained a computer, two laptops, laminating paper, card stock, check stock and a hot laminator machine along with identification, checks and identity theftbags of mail that had been stolen. Also seized were more than 100 licenses and other IDs, roughly 20 hard drives and numerous other media storage devices, such as thumb drives and memory chips.

Police and U.S. Secret Service agents believe they have taken down a major identity theft and forgery ring involving at least a dozen suspects and more than 100 victims. The number of victims could grow as experts analyze computer hard drives and video surveillance footage from businesses where the suspects tried to get money. As of Friday evening, authorities estimated more than $45,000 had been stolen, but said that amount is likely to grow.

Evidence is being examined at the Secret Service’s Electronic Crimes Task Force lab in Seattle. Many of the victims — both individuals and businesses — are from Everett, but the center for the operation was traced to a hotel room in Shoreline.

That’s where police and the Secret Service found what amounted to a ID-theft factory Thursday.

For more:  http://heraldnet.com/article/20130105/NEWS01/701059947

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

Hospitality Industry Theft Risks: Chicago Restaurant Guests Warned About Thieves Targeting Cell Phones

“…The thieves put a flyer on top of the customers’ cell phones. The men pick up the flyer and the cell phone as Cell Phone Theft (2)they leave. They know they can turn these cell phones over to a pawn shop and get a couple hundred bucks.”

Chicago police are warning people about a cell phone theft ring that is hitting downtown restaurants. Customers at restaurants on Michigan, Fairbanks, Wabash and Ontario have been robbed in the last four days.

Police say a group of young men approach diners to say that they are raising money for a basketball team. “I was eating by myself tonight and scrolling on the phone and didn’t even think that someone might come and swipe it,” diner Todd Ganz said.

The team of thieves is operating in three different areas, police say: in the 400-block of East Ontario, the 600-block of North Fairbanks, and in the Loop along Michigan Avenue and the 100-block of North Wabash.

For more:  http://abclocal.go.com/wls/story?section=news/local&id=8941275

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Filed under Crime, Guest Issues, Risk Management, Theft

Hospitality Industry Theft Risks: California Hotel Guest Arrested For Using Stolen Credit Card To Pay For Room; Used Laptop On Open Wi-Fi Network To Steal Account Information

“…(suspect) allegedly rented a room at the Montage by using a stolen credit card. The fraud went undiscovered for two days while Larson accrued a $2,134 tab, but he disappeared from the resort prior to the arrival of cyber securitypolice…he used a laptop to collect credit card information from people making purchases or checking their accounts…”

An admitted identity thief, apparently expert at stealing credit card account information over open wi-fi networks, was arrested last week after skipping out on a $2,134 bill at Montage Laguna Beach, police said. Police tracked Harold Eric Larson, 37, to his hometown of Orange and arrested him on Thursday, Dec. 27, on several theft related charges, Capt. Jason Kravetz said in a statement. He is accused of using stolen credit card numbers to rent hotel rooms to for himself and friends in Laguna Beach, Newport Beach and Costa Mesa, Kravetz said.

Coincidentally, on Dec. 26 police received a complaint about guests using drugs in a room at Laguna Cliffs Inn and arrested Edward Richard York, 40, of Tustin, allegedly for possessing methamphetamine and marijuana, Sgt. Louise Callus said. Officers learned the room was rented with a stolen credit card number provided by Larson, said Kravetz.

Larson was previously arrested by Laguna police last April on 23 felony counts of fraud and theft after he was caught using stolen credit card information to rent hotel rooms.  He pled guilty to the charges and was sentenced to three years probation, one year in jail and restitution.

For more:  http://www.lagunabeachindependent.com/2013/01/02/identity-thief-held-hotel-scam/

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

Hospitality Industry Theft Risks: Wisconsin Hotel Manager Charged With Stealing More Than $28,000; Purchased Prepaid Credit And Gift Cards From Company Accounts

A police audit of credit card purchases made by Huff on her company account revealed $19,603 in prepaid Visa and other gift card purchases made at a local grocery store during a six-month period. Investigators also employee theftdiscovered checks Huff wrote for personal use as well as additional credit card purchases for a cellphone, a computer, auto insurance and auto repairs.

A Schofield woman charged with stealing more than $28,000 from two hotels she managed will be sentenced Jan. 10 after reaching a plea deal with prosecutors. Gretchen Huff, 32, was charged in March with embezzlement after investigators discovered thousands of dollars in unauthorized charges to her employer’s credit card for personal purchases. Huff is the former general manager of two Ghidorzi Co. hotels, the Country Inns and Suites in Schofield and the Fairfield Inn and Suites in Weston.

Managers at Ghidorzi Cos. became suspicious of Huff in January after discovering a one-week van rental in August 2011 for $1,029. Police say Huff paid for the rental with a business credit card issued in her name. Huff admitted renting the van to go on vacation with her children in Nebraska and offered to pay back the money. Further investigation by Ghidorzi officials uncovered additional unauthorized charges, including $2,000 for a used car and stereo equipment Huff said she purchased for a boyfriend in Chicago.

For more:  http://www.stevenspointjournal.com/article/20121228/SPJ0101/312280278/Sentencing-set-woman-charged-hotel-thefts?odyssey=mod|newswell|text|FRONTPAGE|s

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

Hospitality Industry Security Risks: Hotel Electronic Door Locks In "Various Stages Of Being Repaired"; "Mechanical Caps And Security Screws" Provided To Block Hackers

In October, hotel insurance-related company Petra Risk Solutions issued its hotel clients an alert headlined, “Crime Alert – Onity Guestroom Door hackers are for real.”

Onity Electronic LockIn Florida, Petra loss prevention expert Todd Seiders said he received reports that a hacker had been seen carrying a laptop and using a key card – possibly connected to the laptop – to open locked guestroom doors.

The locks on more than 1 million guestroom doors are in various stages of being repaired, following the revelation this summer that they may be vulnerable to hackers.

The New York Marriott Marquis, the biggest hotel in Manhattan, for instance, just completed updating all of its nearly 2,000 door locks. The hotel is one of thousands of properties with guestroom locks manufactured by Onity, a division of United Technologies. An Onity website also shows Sheraton, Hyatt, Holiday Inn, Fairmont, Radisson and other well-known hotels from Paris to Perth as also having its locks updated.

The hacking tool, according to Petra’s alert, could be made for about $50 in easy-to-acquire electronic parts.

“Please train and notify your hotel staff that these burglaries are spreading across the country,” Petra’s alert cautioned hoteliers. “Hotel staff should be vigilant while they are on the guest floors and paying attention to guests walking through hallways…Take time to watch guests walking through your hallways to ensure they are going to a room and entering it. Be very suspicious of someone carrying a laptop or small bag wandering the hallways. Greet guests and ask them if they need assistance.”

Onity did not immediately return an e-mail seeking comment about the issue. But in a statement updated for December on its website, Onity says that as of Nov. 30, it has shipped hardware to fix 1.4 million hotel door locks. The hardware includes mechanical caps and security screws that “block physical access to the lock ports that hackers use to illegally break into hotel rooms.”

For more:  http://www.usatoday.com/story/hotelcheckin/2012/12/14/hotels-fixing-flaw-that-made-room-locks-vulnerable-to-hackers/1769081/

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