Role of Cyber Security in the Hospitality Industry
Introduction
The hospitality industry is noted to be one of the industries most influenced by technology. Hotels, restaurants, and travel services are increasingly reliant on digital technologies to automate core operations and customer interactions. The shift to electronic modes of conducting business has made the industry a popular target for cyber threats. In light of increasing cyber threats, safeguarding personal and sensitive personal data on the part of the hospitality industry becomes significant not only from a customer standpoint but also from an organisational and legal perspective.
Role of cybersecurity in the hospitality industry
A hospitality industry-based entity (“HI entity”) deploys several technologies not only to automate operations but to also deliver excellent customer experiences. Technologies such as IoTs that enable smart controls in rooms, Point-of-Sale systems that manage reservations, Call Accounting Systems that track and record customer calls, keyless entry systems, and mobile apps that facilitate easy booking and service requests are popularly used in addition to operative technologies such as Property Management Systems, Hotel Accounting Systems, Local Area Networks (LAN).{1} These technologies collect vast volumes of data daily due to the nature of operations. Such data necessarily includes personal information such as names, addresses, phone numbers, email IDs etc. and sensitive information such as gender, bank account and payment details, health information pertaining to food allergens etc. Resultantly, the breach and loss of such critical data impacts customer trust and loyalty and in turn, their retention within the business. Lack of adequate cybersecurity measures also impacts the reputation and goodwill of an HI entity since customers are more likely to opt for establishments that prioritise the protection of their data. In 2022, cybercriminals syphoned 20GB of internal documents and customer data from Marriott Hotels, which included credit card information and staff information such as wage data, corporate card number and even a personnel assessment file. A much larger breach was seen in 2018, where 383 million booking records and 5.3 million unencrypted passport numbers were stolen from Marriott’s servers.{2}
Cybersecurity is also central to safeguarding trade secrets and key confidential trade information. An estimate of US $6 trillion per year on average amounts to losses generated from cybercrimes.{3} The figure, however, does not include the cost of breach, expenses related to incident response, legal fees, regulatory fines etc which may be significantly higher for a HI entity when loss of potential profits is factored in.
Cybersecurity is also central from a legal standpoint. Legal provisions in various jurisdictions mandate the protection of guest data. In India, the Digital Personal Data Protection Act 2023, imposes a penalty of up to Rs. 50 Crores on a breach in observing obligations to take reasonable security safeguards to prevent personal data breach.{4} Similarly, the General Data Protection Regulation (GDPR) of the European Union also has guidelines for protecting personal data. Several other industry-specific rules, such as those pertaining to consumer protection, may also be applicable.
Breaches and Mitigation
There are several kinds of cyber security threats faced by an HI entity. “Fake Booking” is a popular method of cyber attack, whereby attackers build and design a website that is modelled exactly after the hotel’s legitimate website. Many customers end up using such malicious phishing websites thereby exposing their personal and sensitive personal data to threats. Additionally, the provision of free wifi within hotel premises, usually accessible freely to the public, implies that a malicious actor may introduce viruses and updates bearing malware. Other common cyber threats include denial of service (DoS) attacks, supply chain attacks, ransomware threats, SQL injection attacks (a type of attack where malicious code is inserted into a database to manipulate data and gain access to information), buffer overflow or buffer overrun (when the amount of data exceeds its storage capacity, implying that the excess data overflows into other memory locations and corrupt or overwrites data in those locations).
One of the best ways to manage data breaches is to leverage newer technologies that operate on a “privacy by design” model. An HI entity must deploy web application firewalls (WAF) that differ from regular firewalls since they can filter the content of specific web applications and prevent cyber attacks. Another method to safeguard data is by deploying a digital certificate which binds a message/instruction to the owner/generator of the message. This is useful in preventing any false claims fraud by customers. Digital certificates may be deployed on distributed ledger technologies such as blockchain, that are noted for their immutability, transparency and security. Self-sovereign identities or Identifiers (SSI) are also a security use-concept of blockchain whereby individuals own and control their personal data, thereby eliminating reliance on central authorities.{5} In the hospitality industry, SSIs enhance cybersecurity by securely storing identity-related information on a decentralised network, thereby reducing the risk of data breaches. Users can selectively share their information, ensuring privacy and minimising data exposure. This approach not only protects guests' personal details but also streamlines authentication processes, making interactions safer and more efficient.
From a less technical standpoint, cybersecurity insurance may be opted for by a hotel to secure themselves and customer information against breach. Through such insurance, a hotel may cover the liability that arises from breaches caused by both first- and third-party actions.{6} Additionally, Payment Cards Industry Data Security Standards should be adhered to, since these standards ensure that businesses should apply best practices when processing credit card data through optimised security. Employee training and upskilling in basic, practical cybersecurity measures and good practices is also a critical component of a comprehensive cybersecurity strategy.
References:
- [1] The Growing Importance of Cybersecurity in the Hospitality Industry”, Alfatec, 11 September 2023 https://www.alfatec.ai/academy/resource-library/the-growing-importance-of-cybersecurity-in-the-hospitality-industry
- [2] Vigliarolo, Brandon, “Marriott Hotels admit to third data breach in 4 years”, 6 July 2022 https://www.theregister.com/2022/07/06/marriott_hotels_suffer_yet_another/#:~:text=In%20the%20case%20of%20the,of%20an%20individual%20organization%20ever.
- [3] Shabani, Neda & Munir, Arslan. (2020). A Review of Cyber Security Issues in the Hospitality Industry. 10.1007/978-3-030-52243-8_35. https://www.researchgate.net/publication/342683038_A_Review_of_Cyber_Security_Issues_in_Hospitality_Industry/citation/download
- [4] The Digital Personal Data Protection Act 2023 https://www.meity.gov.in/writereaddata/files/Digital%20Personal%20Data%20Protection%20Act%202023.pdf
- [5] “What is self-sovereign identity?”, Sovrin, 6 December 2018 https://sovrin.org/faq/what-is-self-sovereign-identity/
- [6] Yasar, Kinza, “Cyber Insurance”, Tech Target https://www.techtarget.com/searchsecurity/definition/cybersecurity-insurance-cybersecurity-liability-insurance