Tag Archives: Theft

Hospitality Industry “Employee Theft” Risk Management: Hospitality Business Owners Must Amend Employment Manuals To Specifically Prohibit Employee Access To Company Records Once “Employment Ceases”

“…employers should amend their employment manuals to assert that any authorization granted to an employee to access the company’s networks, files or data automatically ceases when the employee has been terminated, tenders a resignation or forms an intent to leave the employer for any reason — irrespective of whether the employer has actually blocked the employee’s access…”

“…employers should make clear in their employment handbooks, manuals and employment agreements that any authorization to access company data is granted only in furtherance of the employer’s business purposes. They should state explicitly that any other access is unauthorized. Such language has been cited by courts in several cases where employer CFAA claims have been allowed…”

“…employers must remain vigilant to retrieve laptop computers from employees immediately after an employee gives notice. They should also immediately change passwords and close remote access upon learning of an employee’s intention to leave the company…”

According to “A Statistical Analysis of Trade Secret Litigation in Federal Courts,” that was recently published in the Gonzaga Law Reform, the number of trade secret cases has grown “exponentially” in recent years. “Most alleged misappropriators are someone the trade secret owner knows,” the authors write. “Specifically, in over 85 percent of cases, the alleged misappropriator was either an employee or business partner.”

Cases of employee-related data theft more than doubled between 2006 and 2008, according to a study conducted by accounting and consulting firm KPMG. Based on its findings, the firm concluded that the number of such incidents is “almost certain” to increase further, especially in a difficult economic environment.

For more:  http://www.hreonline.com/HRE/story.jsp?storyId=475264808

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Filed under Crime, Insurance, Liability, Risk Management, Theft, Uncategorized

Hotel Industry Theft Risks: Thieves Are Targeting “Unlocked” Vehicles Parked In Secure Parking Areas

According to police, the group had entered a secure parking area and stolen items from at least five vehicles. All of the stolen items were recovered, and police are in the process of identifying all of the victims with the assistance of hotel staff, Kravetz said.

Police allegedly found numerous items which appeared to have been stolen, including iPhones, iPods, bicycling equipment, Mercedes Benz entertainment headphones, phone chargers, and exercise equipment with an estimated value of $2,500.

Four men were arrested at 7:45 a.m. today on suspicion of stealing items from unlocked vehicles at the Montage Resort Laguna, Laguna Beach Police Lt. Jason Kravetz said.

For more:   http://articles.coastlinepilot.com/2010-07-02/news/tn-cpt-0702-burglaries-20100702_1_burglaries-items-officers

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Future Hotel Liability Issues: 3D Televisions Will Begin To Be More Common In Hotel Rooms But Will Bring Health Risks In Form Of Seizures And Headaches Along With Theft Of Glasses

 “…there have been reported issues with 3-D causing seizures and headaches in certain segments of the population—which could be a liability issue for hotels…”

.. if 3-D becomes commonplace in the home, expect hoteliers to feel the pressure to bring it into the guestroom sooner or later.

“There needs to be content and a way for hotels to collect more for investing in these TVs,” said Anthony Fonzo, senior product marketing manager, Philips Hospitality. “The 3-D television sets are a significant additional investment for the hotelier. There are also a number of questions—will guests pay to watch 3-D, be comfortable wearing glasses and will the glasses stay in the rooms or become another item that is frequently stolen?”

“We don’t believe 3-D will be relevant for the high majority of hotel rooms,” said Rick Albert, VP sales, hospitality, Panasonic. “TVs would have to be completely replaced and we just don’t see 3-D as enough of an incentive for a property to spend the dollars to do another compete renovation. Plus, until the cost of glasses comes down, it is far too cost-prohibitive to keep glasses in rooms and to replace them often.”

For more:   http://www.hotelworldnetwork.com/0710design

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Filed under Injuries, Insurance, Liability, Risk Management, Theft

Hotel Internet And Cybercrime Risks: Texas Hotel Management Company Is Targeted By Thieves Who Steal Dozens Of Customer Credit Card Accounts From Accounting System

“…the thieves made off with the credit card information of dozens of customers who ate at various Destination Hotels & Resorts properties, which are located in a total of 15 states…”

The Austin Police Department said thieves hacked intoThe Driskill Hotel management company’s accounting system and stole customer credit card information.

Authorities said they do not yet know exactly how many victims may have been affected, however, locally, police have received about three dozen complaints of fraudulent transactions, averaging $2,000-$3,000 each.

Losses are expected to total hundreds of thousands of dollars.  The United States Secret Service is also investigating.

For more:   http://www.news8austin.com/content/headlines/272023/driskill-hotel-customers-affected-by-credit-card-theft

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Hotel Security Risk Prevention: San Diego Police Initiate Pilot Program Linking Hotel Security And Surveillance Cameras To Police Squad Cars

“…If hotel staff call the police, an officer in a squad car can click the hotel location on a Google map, and immediately see live video from the hotel’s security cameras. Police say this will allow them to see crimes in progress, to see suspects and see which way they’re going when they flee…”

San Diego police have begun a pilot program that gives officers access to security camera video inside their squad cars. Officers see it as the way of the future.

The program is a partnership between San Diego Police Department and the Hotel Indigo, located downtown. If hotel staff call the police, an officer in a squad car can click the hotel location on a Google map, and immediately see live video from the hotel’s security cameras. Police say this will allow them to see crimes in progress, to see suspects and see which way they’re going when they flee. The privacy of hotel patrons was a concern. But Mayor Jerry Sanders said cameras are already a fact of life.

For more:   http://www.kpbs.org/news/2010/jun/02/police-create-web-link-security-cameras/

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Filed under Crime, Injuries, Liability, Risk Management, Theft

Hotel Industry Personal Property Liability: Hotel Owners Are Strictly Liable For Guest’s Property Subject To State’s Innkeeper Statutes

Hotel owners and managers must remember that under the common law, most jurisdictions and subject to certain limited exceptions, they are strictly liable for loss or damage to a guest’s property, unless that liability has been limited by statute.

Innkeeper statues are a product of local rather than federal law. Each state (and the District of Columbia) is free to enact its own innkeeper statute. For this reason, the first thing the innkeeper must do is check the law in each state in which a hotel is located and clearly understand what that law requires.

In this case (Paraskevaides v. Four Seasons Washington), a hotel guest just happened to be traveling with, and decided to place in her in-room safe, jewelry valued at approximately $1.2 million. When someone removed the jewelry from the in-room safe after entering both the hotel room and the safe without force, the guests sued the hotel. One of the defenses the hotel asserted was based upon the Innkeeper Statute applicable in the District of Columbia.

Although the trial court allowed the defense, the appeals court determined that the hotel was not entitled to the statute’s protection because the hotel had failed to comply with the statute’s requirements. The appeals court then sent the case back to the trial court for a determination of the hotel’s liability under the common law. Noting that neither party had addressed that issue on appeal, the appeals court remained silent as to the applicable common law standards. Accordingly, after several years of litigation, the parties are back to square one and the extent of the hotel’s liability remains wide open.

If an innkeeper fully complies with applicable innkeeper statues, the benefits can be significant. Under the District of Columbia Innkeeper Statute, for example, compliance allows innkeepers to avoid all liability for the loss, theft or destruction of property not deposited in the hotel’s safety deposit boxes unless it is “usual, common or prudent” for a guest to retain such property in his or her room. Moreover, compliance with the statute limits an innkeeper’s liability for the loss, theft or destruction of property deposited in the safety deposit boxes to the lesser of $1,000 or the fair value of the property. In order to reap the benefits of these statutes and limit a guest’s common law rights, a hotel must be precise in its compliance.

The District of Columbia’s version of the innkeeper statute required, among other things, that hotels display either a printed copy of the innkeeper statute or a summary of the law in both the guest rooms and in the public rooms of the hotel. The appeals court in this case concluded that the hotel did not display a copy or summary of the statute in its public rooms, and, therefore, could not rely on the statute to limit its liability.

For more:    http://www.hotelinteractive.com/article.aspx?articleID=1605

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Hotel Information And Data Security Risks: Costs To Hotels Can Be High If Guests Personal Information And Credit Card Data Are Stolen

“…class-action claims will be brought against hotels. These are particularly problematic because while the actual damages may be low, the cost of settling is very high…”

…basis for a claim can be negligence—hotel guests can argue that even when a hotel did not overstep its promises, it is liable to a guest for negligence by not taking adequate steps to protect information. That is going to be even more important as state and federal governments pass laws and adopt regulations that require companies to take affirmative steps to safeguard personal information; these laws and regulations will form a road map for potential plaintiffs.

as we see larger and larger breaches (such as the recently announced Wyndham breach), it’s likely that class-action claims will be brought against hotels. These are particularly problematic because while the actual damages may be low, the cost of settling is very high. Second, governmental agencies—particularly states’ attorneys general and the Federal Trade Commission—are increasingly active in monitoring and investigating breaches. Even where no damages are incurred, responding to investigations is a costly, time-consuming process. I am currently working on a response to an informal FTC investigation that recently topped 1,000 pages—and we’re about half way through.

For more:   http://www.hotelnewsnow.com/Articles.aspx?ArticleId=3364&ArticleType=35&PageType=News

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Hospitality Industry Theft Risks: Hotel Surveillance Cameras And Guest “Identification” Procedures Are Best Deterrent To Property Theft

Gordon called the April 3 thefts at the Hampton Inns “very brazen, and quite frankly stupid,” given that the hotel lobbies have surveillance cameras.

In both cases, Gordon said, Cole checked in using a fake ID and paid in cash. Then he and Harrington left with flat-screens worth more than $1,000 each, Gordon said.

(From an AJC.com article)   Jonathan Cole and Brooke Harrington have been arrested by the Atlanta Police Department, Alpharetta police spokesman George Gordon said Friday.

Police were looking for Cole and Harrington after they hit two Hampton Inns in Alpharetta on a single Saturday. They also are wanted for similar thefts in Gwinnett County and the city of Norcross, Gordon told the AJC.

“We had been looking for them for a while … They hid out really well,” Gordon said. “This was a prolific crew traveling all over metro Atlanta area.”

http://www.ajc.com/news/atlanta/atlanta-police-nab-flat-522306.html

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Filed under Crime, Insurance, Liability, Theft, Training

Hotel Industry Theft: Criminals Target Small Hotel Flat-Screen TV’s To Steal

Alpharetta police said the thieves, a man and a woman, will rent a room to steal the televisions. They pay with cash and use a fraudulent driver’s license for identification.

(From a CBSAtlanta.com article)   A couple is stealing flat screen televisions from Alpharetta hotels, police said Thursday.

“It’s very frustrating because we put a lot of money and energy into the hotel, and somebody just checks in and decides to take it,” said Tracey Cox.

Cox is the manager of a Hampton Inn in Alpharetta that had two flat screens stolen this past weekend.

Alpharetta police said the thieves, a man and a woman, will rent a room to steal the televisions. They pay with cash and use a fraudulent driver’s license for identification.

Just hours before Cox’s hotel was hit, the thieves targeted another Hampton Inn in Alpharetta stealing three televisions. Alpharetta police said they’re also investigating if the couple is responsible for similar burglaries in other area cities.

The man and woman’s images were clearly captured on hotel surveillance cameras. Police have identified the woman and are looking for her. However, they’re asking for the public’s help identifying and locating the man.

“We want to prevent this from happening at other hotels, and we want to get the bad guy, because that’s a crime,” said Cox.

http://www.cbsatlanta.com/news/23090169/detail.html

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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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