Monday, July 16, 2012

Hotels a Hotspot for Credit Card Fraud: Wyndham Hotel is the Latest Victim


According to a study published on the creditcards.com around two years back, hotels were found to be the hotspot for credit card fraud. The same study had indicated that the hotel’s services were targeted the most-even more than financial service company.

Last month, FTC had filed a complaint against Wyndham hotels and its subsidiaries for alleged data security failures that led to three data breaches at Wyndham hotels in less than two years.  The FTC charges that these failures led to fraudulent bills on consumers’ accounts, millions of dollars in fraud loss, and the export of hundreds of thousands of consumers’ payment card account information to an Internet domain address registered in Russia.

This may be a case of misrepresentation of security related privacy policy by the hotel as alleged by FTC and the problem could have been avoided by having a well secured system for storing credit card data and personal information of guests. What would not be possible is restoring the damage due to such an incidence in the hotel which already had done serious brand erosion of the hotel.

Others may take it as a lesson and may possibly give attention to a security assessment of their own systems; there has been another big door open which has remained invisible to many security experts and auditors. This is nothing but insecure form of Wi-Fi service being offered in hotels.

In the past, guests had option to use wired internet connection available inside rooms to have safe and secure browsing. But lately, due to high adoption rate of smart mobile devices which can only be used with wireless networks (either Wi-Fi or cellular) to go online. This implies, guests are increasingly going to use the same insecure wireless hotspots installed in the hotels for their personal and professional requirements which at times might include credit card or bank account transaction apart from other private and confidential data. Transmission of any such data in insecure Wi-Fi hotspots is available in air and can be captured with no or little effort.

Most hotels across the globe provide similar form of Wi-Fi internet service inside hotels and which means no data privacy to their guests. A wireless hacking incidence in any star hotel can also lead to credit card theft, though might not be as voluminous in nature as it was in the case of Wyndham hotel, and hotel may also be able to avoid fine or penalty for the loss of guest’s credit card data as they do provide warning to their users about insecurity of wireless service, what they may never be able to do is saving hotel from brand name erosion due to such an incidence if it happens.

Wi-Fi technology has undergone a lot of advancement in recent years and with Airegis proprietary technology it is possible to offer truly robust Wi-Fi service to guests. One of the key advantages of Airegis solution is that it does not require installation of any custom made software or apps on the client device. So, users with any Wi-Fi certified device can connect to Airegis powered Wi-Fi hotspots and browse internet without worrying about wireless threats and data privacy.

It is high time for the hospitality industry to sacrifice the decade old Wi-Fi hotspot system, adopt and upgrade their wireless infrastructure with the Wi-Fi hotspot technology available today and let their guests wear the same wireless security cover that they use when they are at home or in the office. Ultimately, Guest is King!