Credit Card Hackers Target Hotels Most Often: Report

Dennis Faas's picture

It's often argued that restaurants are the most likely place for people to suffer credit card fraud. But a new report claims hotels are actually the most at-risk locations.

The restaurant theory is based on the fact that people are more likely to hand over cards and let them out of their sight as they are taken away for processing. But security firm Trustwave believes the real danger isn't dishonest staff or venues, but rather criminals attempting to intercept data transmissions.

38% Of  Fraud Cases Involved Hotels

Trustwave recently evaluated credit card hacking reports for 2009 and found that 38 per cent of cases involved hotels. Restaurants and bars (13 per cent) were actually in fourth place, behind financial services (19 per cent) and retailing (14.2 per cent).

Criminal logic seems to be that hotels offer the most data for the least effort. Hotels which run on a franchise system are often particularly vulnerable because hackers can get into a computer at one location and, if the network is not resilient enough, get access to other hotel databases. (Source:

Security Spending Under Scrutiny

Ironically, the problem is worsened by the fact that hotels traditionally aren't associated with data theft and thus sometimes lag behind when it comes to the latest security practices. This is compounded by the poor state of the economy in recent years, meaning some hotels are hesitant about spending more on cyber security.

Still, even simple measures could make a difference. It appears many of the hacking attempts are simply brute force attacks, the electronic equivalent of simply trying out every possible combination of characters in a password. Hotels simply adding one or two characters to passwords, or mixing numbers and letters, could tilt the odds firmly in their favor.

Quick Cash Preferred over Identity Theft

There is some good news for consumers. While identity theft is a serious issue, the Trustwave report found the vast majority of criminals simply attempt to get cash. Many card providers will cover cardholders against such losses if they are reported promptly.

The report also reminds cardholders that it's important they regularly check their statements for suspicious transactions. Criminals who steal card details will often make several small fraudulent transactions and see if the card still remains valid. That's because they want to minimize the risks of being quickly detected when they do eventually go for the big score. (Source:

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