Tag Archives: Debit Cards

by | June 1, 2012 · 7:47 am

Hospitality Industry Payment Fraud Risks: Florida Hotels Victims Of $15,000 Scam By Guests; Legitimate Credit Cards "Switched" To Prepaid Debit Cards

“…(three men) racked up roughly $15,000 in charges at several Disney hotels earlier this year and then left without paying before hotel staff ever realized what happened…Each man checked into a hotel with a legitimate credit card but then switched the room charges to prepaid debit cards that each had less than $10 in value…”

Falk, 36, told deputies they pulled off the scam by taking advantage of a loophole in the way Disney charges resort guests that he discovered during a legitimate vacation four years ago. Then they charged thousands in theme-park purchases to their rooms. Since the hotel limited charges to between $1,000 and $1,500 per room, the fraudulent purchases went undetected since they stayed below those amounts, they told deputies.

Nero, 39, told deputies they visited resort hotels seven times and reserved a total of 13 rooms from February to April. The three could still be living the high life had it not been for a vigilant cigar shop employee, a report says. The employee contacted authorities after Falk allegedly came into the shop several times to buy hundreds of dollars worth of pricey cigarettes.

The employee told police that Falk was spending more money than most of the other customers but what really made him suspicious was that Falk never seemed to care what brand of cigarettes he bought. According to the shop owner, most smokers are loyal to their brands.

For more:  http://articles.orlandosentinel.com/2012-05-31/news/os-disney-hotel-scam-20120531_1_hotels-shop-owner-room-charges

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Filed under Crime, Guest Issues, Labor Issues, Liability, Management And Ownership, Risk Management, Theft, Training

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by | March 10, 2011 · 7:33 pm

Hospitality Industry Information Security Risks: "Electronic Pickpocketing" Allows Criminals To Steal Credit And Debit Cards Containing RFID Technology

“…criminals can steal credit cards, debit cards, passports and other valuable information…This crime is referred to as “electronic pickpocketing”.  The technology used to perform this type of theft is called radio frequency identification or “RFID”….

Hundreds of millions of credit cards, debit cards and all passports issued since 2006 are embedded with a radio frequency identification chip—or RFID.  RFID chips are also commonly used in hotel keys, cards that raise gates in parking garages and unlock doors at businesses.  Government, military and port of entry ID cards are also vulnerable to this type of theft.  You need only swipe the card in front of a reader.  The RFID chip is always on, making consumers more susceptible to identity theft. 

Thieves can steal this information by using a frequency reader.  These readers are inexpensive and easy to obtain.  The thief can simply walk next to you and acquire your credit card number and expiration date without any physical contact. While these cards are in your wallet or purse they can transmit your card or passport number and in some states, your digital drivers’ license information when placed near a reader.  The information almost immediately appears on a computer screen without you ever knowing about it.  Apparently U.S. passports are more difficult to read than cards with RFID chips because they require a password.  However, hackers with enough knowledge can see everything on the passport’s front page.   A thief can be long gone before the consumer ever realizes his information has been stolen.  This is “electronic pickpocketing”.

For more: http://www.ktnv.com/story/14225766/consumers-beware-of-electronic-pickpocketing

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by | April 7, 2010 · 6:37 am

Hotel Cybercrime: Debit Cards Do Not Offer Same Protections As Credit Cards If Account Information Is Stolen

Jacque Tiegs of Clair Shores, Mich., had a similar experience a few years ago. She used her debit card at a hotel in Milwaukee for incidental charges and found out on her next month’s bank statement that someone had run up a $3,500 bill at another hotel of the same brand in Chicago. Her bank couldn’t (or wouldn’t) solve the problem, and the hotel claimed she had run up the charges. Only by threatening to go to the police and offering proof that she had been out of town on a work assignment was she able to get the charges reversed.

(From a WalletPop.com article)   Don’t think that the same protections you get from your credit card apply to your debit card. If someone steals your credit card number and runs up a big bill, you won’t be responsible for the fraudulent charges — at least not until the card company completes its investigation and probably not at all if they find evidence of fraud. But if someone steals your debit card information and starts charging away, you’re on the hook. The money comes straight out of your bank account. Not only are they your funds — with no one there to cover for you — but getting the money back can be a huge hassle that can easily take a month, if not more, to resolve.

Even if your money is only locked up temporarily, as Greg Meyer’s was, it can still be devastating, especially if you don’t have a large balance to tide you over. Not only that, but if the hold is greater than your balance, it can trip an overdraft protection and subsequent transactions can be denied or add to your overdraft woes.

So how do you protect yourself – and your debit card? “Be alert when there’s an opportunity for so-called ‘skimming’ or where people can look over your shoulder to track your PIN number,” says Tim Lukens, a senior vice president at Affinion Security Center, a company that makes anti-cybercrime software for big banks. Also, think twice before using your debit card at a restaurant, where you don’t actually see the server swiping it, or at gas stations, where surveillance cameras can record you keying in your PIN.

http://www.walletpop.com/blog/2010/03/31/debit-card-disasters-what-to-do-when-you-get-burned/

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