Top 5 risks and security challenges for hotels in 2015

Are you aware of the security risks hotels will face in 2015? Are you confident your hotel is able to meet
current risks and challenges? Or are you unprepared and just hoping for the best hoping no incidents occur
that could harm the hotel brand and mean loss of business?

Forecasting the future is risky, but hotels that fail to look forward will almost certainly be left behind in an
increasingly competitive, globalized world. To help hotels prepare to meet current and future risks, Sky Touch has
developed a Hotel Security Radar that monitors global hotel security issues and tracks changes of critical points the
industry is facing worldwide. The radar shows the latest threats hotels are currently experiencing and their intensity
based on incident reports from the last years and the analysis of up-to-date data from trustworthy sources. The radar
is updated periodically as trends and crime patterns are analyzed. It is a helpful resource for hotel management when
developing or reviewing security plans and providing security training for staff.The Hotel Security Radar identifies a
number of real risks for hotels in 2015. Here are the top five:

1. Identity theft leading to credit card fraud

Protecting our own identity is more at risk this year than ever before. Credit card fraud is the biggest threat we are
currently facing. Criminals from all over the worldwide try to hack into hotel networks in an attempt to steal guest
identities, including credit card details. They are not just targeting one individual, but thousands of cardholders at the
same time. Identity theft and credit card fraud is the new form of pick pocketing, but on a much larger scale. The
number of compromised credit cards is expected to increase this year.

2. Silent invasions Cyber-crime attacks are powerful tactics from next generation criminals

Cyber-crime shows up on the security radar as the second highest risk the hotel industry is exposed to. Hotels have to
deal constantly with social engineering attacks such as phishing and now also with APTs (Advanced Persistent
Threats). Worldwide, APTS are considered the most dangerous type of cyber-attack as they simply bypass the
defenses that are in place. This applies to the hotel network, but also to the guest WIFI. Hotel WIFI-networks are
notorious for their lack of security and therefore provide an open door for hackers and puts data from guests at a high
risk.

That this is a serious problem is shown by the fact that the insurance industry is now offering the first cyber-crime
insurance deals. Barely a day goes by without some form of data breach being reported in the media. For example, a
survey released mid 2013 by McAfee found 45% of the surveyed small to medium size business had been the target
of an electronic attack. This is now potentially one of the biggest threat your hotel faces.

3. Longer or no security audit cycles

The hotel industry is growing very fast and every day a new hotel opens somewhere in the world. Nearly 1.26 million
hotels worldwide are dealing with all sorts of safety & security issues. Hotels that belong to a chain or group require
more physical audits in security then privately owned hotels in order to be compliant with group standards. Along
with the huge number of hotels built in the last year, the number of auditors has not increased proportionally in every
key market. The gap between the low number of qualified security auditors worldwide and new hotels built is getting
bigger and bigger. This will result in complications in the future and a higher risk for hotels. The gap also leads to an
increase in audit costs. The industry can expect that audits will be more expensive or be of a lower quality. The
industry deals with the issue in different ways already. Some hotels are stretching the frequency between security
audits, while others skip audit cycles completely to save money. Both trends lead to a higher risk to investors and
hotel guests.

Some hotel companies have started to implement a self-audit approach using qualified key people in the hotel to
maintain security standards. Innovative Do-it yourself audit packages are already available on the market. We
believe this is the best solution to build on.

4. Physical crime will remain an issue for hotels in 2015

Of course crime differs from country to country. However, on a global scale a general increase has been recognized
by the authorities and security experts. Physical crime ranges from professional burglaries using nifty social
engineering techniques to temporary drug laps in hotel rooms. It can be expected that in 2015 guests will be victims
of organized crime and we highly recommend reviewing security awareness programs. Holdups at night involving
firearms have increased since hotels are easily accessible and less protected compared to other industries operating at
night. With the increase of drugs and the economic downturn, an increase in this type of crime can be expected.

Terrorism, including the firing of weapons and disregard of human life, presents a major threat to global security. We
need to accept that incidents can happen at anytime, anywhere in the world and no one is able to predict where the
next attack will take place. Unfortunately, hotels along with restaurants, theme parks, cruise ships, tourist attractions
and public transportation are classified as high risk and soft targets. We learned recently here in Australia that ranking
very low in the Global Terrorism Index from 2014 is not a guarantee of safety.

Terrorist activities are at a historical peak and continue to increase. The Middle East and South Asia are identified as
the two regions where the risk of terrorism is greatest.

5. Loss of competitive advantage after a major security incident

It is understandable that when there are no incidents over a period of time a certain degree of complacency sets in.
Complacency itself is an actual risk for the business, for guests and staff. The recovery costs after a security incident,
including the attention of the media, are often much higher than the investment in security and risk management.

The worst-case scenario after a major security incident is obviously the loss of business when the property shuts
temporarily for the investigation and or repair. The competition will pick up your business and benefit from it while
your fix costs are still running. Along with the actual damage, questions are often raised whether management could
have done more to mitigate the risk level. When security plans and business continuity plans are well maintained, the
likelihood of recovery is higher. Reputation is a vital yet fragile advantage that requires its very own security plan in
a strong competitive market where guests nowadays love to make their booking decisions with the help of online
travel review sites such as Tripadvisor & Co.

Check list for Hotel security team

Perimeter:

1. Will a fence help protect the premises?

2. If there is a fence in place,is the fence too high to climb or protected with barbed wire?

3. Is the fence in good repair?

4. Is the fence designed so no one can crawl under it?

5. Are materials such as trash containers, incinerators,etc., that could be used in scaling the fence placed a safe
distance away?

6. Are the gates solid and in good repair?

7. Are the gate hinges in good repair?

8. Are there flammable materials in the receiving area which should be removed?

9. Is there a frequent trash pickup?

10. Is adequate lighting provided for the entire area?

Doors:

1. Are all unused doors secured?

 2. Are door frames strong and securely in place?

3. Is the glass in back doors and similar locations protected by wire-glass or bars?

4. Are all doors designed so the lock cannot be reached by breaking glass or a light sash panel?

5. Are the hinges designed and located to prevent the pulling or breaking of the pins?

6. Is the lock bolt designed and placed to prevent easy displacement with a "jimmy" or other instrument?

7. Is the lock designed or the door frame placed so the door cannot be pried open by spreading the frame?

1 Is the bolt protected or constructed so it cannot be cut?

2 Is the securely mounted so it cannot be pried off?

3 Are the locks on the door in good working order?

4 Are the keys in the possession of trusted personnel and are they secured when employees leave the premises?

5 Are padlock hasps constructed so the screws cannot be removed?

6 Are the hasps heavy enough?

7 Are all doors locked and/or bared during non-operating hours? Is emergency evacuation capability maintained
at all times on such doors?

8 In non-operating hours, are access locations properly checked by security staff and/or central station or
proprietary protection systems?

Windows:

1. Are easily accessible windows protected by gratings, bars,or other access-limiting devices?

2. Are unused windows permanently locked?

3. Are windows which are not protected by bars locked?

4. Are there unneeded windows at lower floors or other areas which could be replaced by glass blocks or other
less vulnerable alternatives?

5. Are the windows and locks so designed or located that they cannot be opened by simly breaking the glass?

Other openings:

1. Are unnecessary skylights (which may be subject to hurled objects) protected or have they been eliminated?

2. Are accessible skylights protected with bars, etc.?

3. Are roof hatches properly secured?

4. Are the doors to the roof or elevator penthouses in good condition and securely locked?

5. Are laundry and trash chutes provided with locks?

6. Are all ventilator shafts and vent openings protected?

7. Are entrances to sewers and service tunnels protected?

 8. Are fire exits and escapes designed to permit easy exit but to limit illegal entry?

Building Construction:

1. Are the walls of the building(s) of frame construction and fire-resistive or capable of being made so?

2. Is the roof fire-resistive and secure?

Safes:

1. Is the safe fire-resistive?

2. Is the safe fastened securely to the floor or wall, ceiling and floor, set in concrete, or appropriately alarmed?

3. If a vault is used, are the walls as well as the door secure?

4. Is cash on hand kept to a minimum?

Security Officers:

1. Is it feasible to have an in-house security staff? Or, is it more appropriate to employ a contract security service
or off-duty police?

2. Do the security officers receive proper screening, training, and supervision, whether they are in-house or
contract?

3. If security personnel are armed, are they properly armed and proficient in the use of such arms?

4. If there are full-time security personnel, are they free from "extra duties" so they are able to perform their
protective duties fully?

5. If a commercial security service is employed, is the service checked to confirm that it has the ability to
provide full services?

6. Would it be beneficial to conduct emergency drills?

7. If available, has complete central station or proprietary supervisory service been considered in addition to
standard security services?

8. Has closed-circuit television or a similar monitoring device been investigated as a means of increasing
effective surveillance by your security force?

Public Protection:

1. Is proper liaison maintained between the hotel or motel and the police and fire departments?

2. Do the police and fire departments have the phone number of key personnel and vice versa?

Electronic Data Processing:

1. If there is a computer on the property, have proper steps been taken to ensure computer integrity with proper
off-premises backup capability?

2. Is the computer facility in a secure location?

3. Is the computer room protected from the danger of hurled objects, flood, or fire?

Communication Equipment:
 1. Is the communication center (telephone room,etc.) located in a secured place?

2. Is adequate protection provided for wires and cables, etc.?

3. Has an emergency communications plan been developed?

Hotel Security Self Inspection Checklist

Since Transient guest do not have the sense of territory or the ability to easily recognize intruders as intruders that
neighbors in a residential community have effective physical security in needed to reduce their vulnerability.

An Effort should be made to develop a self inspection or survey form tailored to the property. Below points should be
considered while creating a checklist.

What Problems are created by the community in which the property is located ?

What is the potential for civil disorder, vandalism, or similar security incidents?

Does the traffic pattern around the property create special problems?

Are there areas or zones for control of traffic when deliveries are being made, bus tours are loading or
unloading, guests begin arriving in their own vehicles, cabs etc.?

Are there problems of loitering, begging or solicitation outside pedestrian entrances to the hotel?

Is there easy access to major roadways which could permit a robber to make a quick escape by high speed
roadways?

What is the ease of access for police? The fire Department and other emergency services?

Are driveway provided?

Do one-way streets adjacent to the property permit easy routing of traffic to and from the location.

Are underground access routes available?

Is there adequate illumination in all exterior areas including streets, passageways, walkways, alleys, delivery
areas etc. ?

Is there an adequate supply of water in the event of a fire emergency?

Is there auxiliary pumping capacity in the event of failure within the local water system or loss of power on
the property?

Is there easy access to a water source for the fire department?

Is there danger of illegal entry into the property through underground service routes, tunnels, sewers,
subways, manholes etc. ?

Could there be access from adjacent buildings over the roof or through adjacent windows?

Are windows and doors secured between the hotel or motel and adjacent structures?

Is there a fire danger from the neighboring structures?

 What dangers are present for arriving or departing employees?

What transportation facilities are available to employees in addition to private motor vehicles ?

Are parking facilities adequate and safe for serving the needs of the employees and guests ?

Is there an adequate guard service, police service, or surveillance system to protect the guests and employees
using parking facilities ?

Are safe employees entrances and receiving areas provided?

Are appropriate security personnel or system provided ?

Are there dangers for guests arriving at the door by taxi or other public transportation?