Tag Archives: Credit Cards

by | April 10, 2012 · 1:36 am

Hospitality Industry Crime Risks: "Large Identity Theft Operation" Uncovered At California Hotel After Manager Suspected Drug Sales

“…Deputies found fake credit and identification cards as well as computers, printers and software used to make false identification..Deputies also found credit card readers and small cameras that allowed criminals to capture credit card information and PIN numbers. Prepaid credit cards embossed with stolen information which could then be used at businesses were located..”

Sheriff’s deputies broke up a large identity theft operation this past weekend while investigating a report of drug dealing at a hotel room. Investigators contend the material found Sunday at Four Points by Sheraton at 11960 Foothill Blvd. was created using stolen information from card readers or skimmers, Rouse said.

The group allegedly started in Northern California and “have been working their way around,” he said.

On Sunday, a hotel manager called the Sheriff’s Department to report someone was selling drugs in one of the rooms.

Deputies discovered various items indicating Jeffery Wilkinson, 35, Barbara Brown, 32, and Shahin Abdollahi, 46, were involved in a large-scale identity theft ring, sheriff’s Sgt. Ken Jamieson said.

Wilkinson had an arrest warrant and was in the possession of drugs.

For more:  http://www.contracostatimes.com/california/ci_20355205/rancho-cucamonga-id-theft-ring-uncovered

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by | March 28, 2012 · 1:11 am

Hospitality Industry Employee Risks: Alabama Hotel Clerk, With Prior Arrest Record, Arrested For Stealing Guest Credit Card Informatiom

Rains says Niles got the guests information from the hotels computer database and used it for more than just their rooms.

A Mobile hotel clerk is behind bars. The Mobile Police Department says he was doing more than checking guests in, he was using their credit card information.

“While working as a front desk clerk at a local hotel he actually stole credit card information from one victim who had previously stayed at the hotel,” said Rains.

“He used this information to book hotels for him and his friends and we were actually able to catch him,” said Rains.

This wasn’t Niles first time. He has been arrested several times for charges like identity theft and possession of a forged instrument.

“He was on probation for the same crimes when he committed these,” said Rains.

Police say Niles charged a significant amount of money. Thankfully the victim was monitoring the transactions.

“As a safeguard just to make sure that your credit cards aren’t being used fraudulently the best thing you can do is check your accounts and alert your credit card provider if you’d see anything fraudulent,” said Rains.

For more:  http://www.fox10tv.com/dpp/news/local_news/mobile_county/mpd-hotel-clerk-using-guest-credit-card

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by | December 29, 2011 · 6:21 am

Hospitality Industry Employee Risks: Texas Hotel Uses Video Cameras To Identify Housekeeper Who Used "Portable Electronic Skimmer" To "Steal Guest Credit Card Numbers"

“…a number of guests who suspected someone had entered their rooms and stolen their credit card information, even though they were still in possession of their credit cards. Charges usually were applied to the credit cards several days after the guests had departed the hotel…”

“…While monitoring the hidden camera’s video feed real-time from the hotel security office, Jose Ramirez observed Margarita Fernandez Abreu remove a small device from her pants pocket and then slide approximately three of the debit cards through the device…”

The Stephen F Austin set up an elaborate ruse to trick a hotel maid into revealing she had stolen the credit and debit card numbers of hotel guests.

 Possible suspects in the case were narrowed down to maid Margarita Abreu, the only employee who had entered the room with an electronic key card. Knowing that, the hotel managers set up a hotel room that appeared to be occupied but wasn’t. A hidden camera was placed in the room that focused on the coffee table and debit cards.

 “Margarita also looked through the purse that was on the table as well. Margarita then concealed the device back in her pocket and continued cleaning the room.” After two detectives viewed the video and identified the object as a “card skimmer” that captured and saved the data. That data could be later downloaded and re-encoded to create “clone” credit cards.

Abreu was arrested on charges of credit card abuse, a state jail felony. Her bail was set at $15,000.

For more:  http://www.kxan.com/dpp/news/crime/video-shows-credit-card-theft

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by | November 19, 2011 · 6:22 am

Hospitality Industry Employee Risks: Police Arrest New York Restaurant Waiters Who Were "Equipped With Electronic Skimmers" To Steal Credit Card Information

“… the crooks equipped waiters at Smith & Wollensky, The Capital Grille, Wolfgang’s Steakhouse and JoJo — and at two restaurants outside the city — with electronic skimmers to steal the info from at least 50 customers…”

Waiters at some of New York’s swankiest eateries were part of a criminal crew that stole credit card information to create counterfeit cards — and then racked up some $600,000 in purchases, prosecutors revealed Friday.

Then Jacas used a “network of shoppers” to go on shopping sprees at high-end Manhattan stores like Chanel, Neiman Marcus, Cartier, Hermes of Paris, Bloomingdales, Bergdorf Goodman, Waldmann’s, London Jewelers, Burberry, Jimmy Choo, Lord & Taylor, prosecutors said.

One of them was Gregory Portacio, who infamously dragged a Queens mom to her death in 1980 by grabbing her neck chain and hanging on while an accomplice drove their getaway car down a block.

“Anybody who thinks credit card fraud brings out high class criminals should think again,” said Police Commissioner Ray Kelly, whose men were still searching for the 51-year-old career criminal and sex offender.

The crooks even used the phony American Express cards to refuel at Starbucks and also hit stores in Westchester County, Long Island, Boston, Chicago and Florida.

The ill-gotten goods were then fenced to “complicit customers” for cash, prosecutors said.

Read more: http://www.nydailynews.com/news/crime/smith-wollensky-steakhouse-waiters-busted-600-000-credit-card-scam-article-1.979766#ixzz1eA1lm2Y2

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by | November 5, 2011 · 5:20 am

Hospitality Industry Information Security: New York Hotel Employee Charged With "Stealing 237 Guest Credit Card Accounts" Totaling Over $800,000 In Fraudulent Purchases

“…A New York City hotel chain auditor has been charged with stealing hundreds of guests’ credit card information and selling it to a man accused of using it to buy $840,000 worth of airline tickets and other items…”

Lukasz Kruk and Barry Herndon pleaded not guilty to grand larceny, identity theft and other charges Friday. The Manhattan district attorney’s office says 237 accounts were compromised over three years.

Prosecutors say Kruk was an auditor for the Amsterdam Hospitality Group and had access to guests’ credit card data. They say Herndon bought tickets for himself and other people with information Kruk took.

Amsterdam Hospitality Group runs eight boutique hotels in New York City, Asbury Park, N.J., and Charlotte, N.C. Its representatives haven’t responded to a request for comment.

For more:  http://www.businessweek.com/ap/financialnews/D9QQ75581.htm

 

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by | October 28, 2011 · 5:41 am

Hospitality Industry Cyber Crime: Washington Hotel Room Used By "Identity Theft" Ring Exposed By Credit Card Company Alerting Card Owner Of Hotel Room Booked At Hotel

“…The man’s credit-card company had alerted him that someone using his card had booked a room there…”

“…Police say the search turned up cell phones, lap top computers, computer hard drives, iPod touches, electronic storage devices, magnetic card readers, routers, hotspots and computer peripherals…”

Police have arrested two men and say a search has turned up evidence that there may be more victims of identity theft. Police say they have yet to determine how many vicitms there might be.

Just after noon on Tuesday, East Precinct patrol officers met a man in the lobby of the Silver Cloud Hotel in the 1100 block of Broadway. Officers went to the room and found two men.

In the room, they saw several cell phones, laptops, a WiFi hotspot, router and papers with credit-card numbers.

Detectives with the fraud, forgery and financial explotation unit got a warrant to search the room and the suspects’ vehicle.

For more:  http://www.seattlepi.com/local/article/Seattle-cops-may-have-busted-identity-theft-ring-2239352.php

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by | October 14, 2011 · 6:15 am

Hospitality Industry Guest Information Risks: Hotels Are Collecting More Personal Information On Guests And Protecting "Personally Identifiable Information" Is Top Priority

“…ensuring the security of this data is so important that it’s consuming hotel IT departments’ attention right now, said Josh Weiss, Hilton Worldwide’s VP of brand and guest technology…”

 “…The stakes involved in protecting “personally identifiable information” (data that can be used to uniquely identify, contact or locate a single person) are far higher with this personal information than with credit-card information…”

As hotels collect more personal information about guests and the Epsilon and Sony data breaches earlier this year shook people’s confidence in corporate data protection, hotel guests are increasingly asking hotels how well they’re securing their personal information, Mark McBeth, Starwood Hotels’ VP of information technology, said during a recent conference.

IT execs from Starwood and also Hilton and owner/operator White Lodging said they’re responding by making guest-data security their No. 1 priority. “PII is considered high-risk because if there were to be a breach, you’re exposing the guest’s identity,” he said. “It paints some pretty scary pictures.”

A “PII” breach could potentially lead to child abduction or a murder if information falls into the wrong hands, he said.

For more:  http://travel.usatoday.com/hotels/post/2011/10/starwood-hilton-work-to-protect-personally-identifiable-information/553616/1

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by | September 29, 2011 · 6:09 am

Hospitality Industry Information Security: Major Hotels Move Closer To "Secure Payments Framework" That Will Protect Guest Credit Card Data Through "Tokenization"

 “Every major hotel company is working to get as many of their systems as possible out of the scope of the Payment Card Industry Data Security Standards (PCI-DSS)…Most of these companies have focused on solutions based on tokenization, and many have implemented them or are in the process of doing so.”

Tokenization is a process whereby sensitive card data is stored in a single secure location, which may be operated by a hotel brand, a payment gateway or another third party, and replaced in hotel systems by substitute “tokens.”  The tokens can be used to complete the transaction, but are useless if intercepted electronically by a thief. 

Top hotel security executives met several times to discuss this problem as the HTNG Secure Payments Framework effort took shape during August and early September.  Early discussions indicated a broad agreement that a single industry framework is needed, and that the framework needs to work with existing security approaches in place at major hotel companies and in commonly used systems.  There was also agreement on the key elements needed for the industry framework.  The group intends to document this framework conceptually in a white paper that will form the basis for subsequent standards development.

  This new effort will leverage hotel companies’ prior investment in tokenization efforts, adding a layer of security that will enable those solutions to be extended to unrelated parties that may be involved in transactions, such as online travel agencies, global distribution systems, switches, channel management systems, central reservation systems, management companies, independent hotels, payment gateways, swipe devices, and other parties.  “The approach is intended to enable the tokenization of card data by the first system that touches the reservation,” said Rice.  “The sensitive data will remain stored in a secure vault, and all of the other systems will simply pass along the token in place of the credit card.  The hotel itself can then submit the token to its token provider or gateway to complete the card transaction.  The card data itself need never touch a hotel system.”

For more:  http://www.hotelnewsresource.com/article58324.html

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by | September 13, 2011 · 10:49 am

Hospitality Industry Information Security Risks: Senate Introduces "Personal Data Protection And Breach Accountability Act Of 2011" Forcing Companies To Secure Personal Data

“…Introduced by Sen. Richard Blumenthal (D-Conn.), the Personal Data Protection and Breach Accountability Act of 2011 would force companies that hold online information for more than 10,000 people to follow strict guidelines to ensure the data is stored correctly…”

The U.S. Senate will consider a bill aimed at protecting citizens’ personal information from online data theft, and penalizing companies that don’t adequately store and safeguard their customers’ personal information.

The bill would impose fines on companies who don’t follow the guidelines and leave customer data open to compromise, and open the door for customers to sue companies that don’t adequately protect their data.

Blumenthal’s bill would put the U.S. government in line with states such as Massachusetts, which has legislation that fines companies that improperly protect residents’ digital data.

For more:  http://www.msnbc.msn.com/id/44491737/

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by | August 24, 2011 · 8:00 am

Hospitality Industry Guest Privacy Risks: Virginia Hotel Sued For Violating "Fair And Accurate Credit Transactions Act"; Receipts "Bore Expiration Date Of Credit Card"

“…(the suit) would include individuals who received electronically printed receipts for transactions at Marjac Suites after June 30, 2008, and whose receipts bore the expiration date of their credit or debit card…”

A willful violation of the statute, the Fair and Accurate Credit Transactions Act, can trigger damages of $100 to $1,000 per transaction, along with attorneys’ fees and costs.

A Virginia Beach hotel broke a privacy-protection law by including restricted information on a credit-card receipt, a hotel guest alleges in a suit filed in federal court in Norfolk.

The plaintiff, James T. Buechler of Baltimore County, Md., contends that Marjac Suites on Atlantic Avenue and its owner, Burlage Hotel Associates, violated a federal statute in January by printing Buechler’s card-expiration date on his receipt at checkout.

Buechler is seeking damages “on behalf of himself and the thousands of other consumers placed at risk by defendant’s unlawful practice,” according to the suit, filed Aug. 10.

Buechler is asking the court to certify his suit as a class action. Members of the proposed class would include individuals who received electronically printed receipts for transactions at Marjac Suites after June 30, 2008, and whose receipts bore the expiration date of their credit or debit card.

For more:  http://hamptonroads.com/2011/08/guest-claims-va-beach-hotel-violated-privacy-law

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