Credit Card Fraud: The Threat to Hotels and Restaurants Everywhere
By Peter Goldmann President, FraudAware Hospitality | October 28, 2008
The problem is two-fold: While until recently, most credit card fraud involved "guests" using stolen or fraudulently obtained credit cards to pay for hotel charges, now the Internet has added a new dimension of credit card fraud threatening hospitality businesses.
For example, cyber criminals can hack into a company's customer database and steal large batches of guest credit card information that they then sell on the black market. Or, they can use the stolen credit card information to manufacture counterfeit credit cards, which they then use to fraudulently purchase goods or services.
Making matters worse, like companies in other industries that have been hacked by information thieves, hospitality companies could suddenly find themselves on the receiving end of lawsuits claiming damages for liability related to the theft of confidential guest information.
To prevent incidents such as these, optimizing the company's information security defenses is the obvious first step. In addition, more and more businesses are looking into cyber-crime insurance as an option for protecting against the growing risk of liability for theft of confidential information.
Leading insurance companies such as Chubb and Traveler's offer a variety of coverages that are worth researching.
Phishing For Fraud