Cyber Crime & Hospitality: The Facts
Cyber attacks in the hospitality sector aren’t an urban legend; they’re not one of those things that just happen to other people. They’re a real threat. And they’re happening all over the world.
As a hospitality business leader, you probably always read stories about cyber attacks in hotels and restaurants. You may even have been advised to strengthen your processes and systems to reduce your risk. But the truth is, until you experience an attack, it can be very difficult to connect all the dots; applying the theoretical risk to your everyday business operations can be challenging.
We get it.
That’s why we wanted to share some real-world statistics, transforming the ‘what if’ into hard facts, figures, and percentages. So, why not join us as we take a closer look at what’s really happening…
Hospitality is one of the most at-risk industries
Reports show that just five industries account for more than 60% of all cyber attacks. Travel and hospitality is one of them, with 9% of all attacks targeting this particular sector. Consumer goods, industrial, banking, and insurance are the other four sectors which are most attractive to hackers.
Source: www.accenture.com/us-en/blogs/security/triple-digit-increase-cyberattacks
Hospitality is targeted for two primary reasons
It has been found that those in the food and hospitality industry are 19% more likely than the average business to offer online payment options, and 11% more likely to use network connected devices. This combination means there are more possible entry points to better quality data sets.
Source: www.gov.uk/government/statistics/cyber-security-breaches-survey-2022
Nearly one-third of hospitality businesses have experienced a breach
It’s understood that 31% of all retail and hospitality businesses have experienced some form of security or data breach. And the majority – 89% – have experienced more than one attack per year. This suggests that those with vulnerable networks or processes are likely to be targeted again.
Source: www.securitymagazine.com/articles/96515
Cyber attacks don’t just affect the ‘little guys’
It’s not only small, independent family-run businesses that can be hit with an attack; even the biggest hospitality brands in the world can be affected. In 2019, 10.6 million MGM Resorts guests had their data shared online, and in 2020 the information of 5.2 million guests was stolen from Marriott.
The cost of a data breach is rising
In 2020, the estimated cost of a data breach in the global hospitality sector was $1.72 million. Just one year later, that had risen to $3.03 million, marking a jaw-dropping 76.2% increase. This makes the cost of a data breach in hospitality one of the fastest-growing increases across all industries.
Source: www.ibm.com/downloads/cas/OJDVQGRY
Internal networks are the preferred entry point
While there are many possible ways that cybercriminals can infiltrate systems, the preferred entry point in hospitality businesses is the internal network, which accounts for 64% of all attacks. Ecommerce activities and point-of-sale devices (eg. credit card readers) make up the remainder.
Source: www.statista.com/statistics/434774/it-environment-cyber-crime-attack-industry/
Hospitality businesses are not prepared
Despite the risk, most hospitality organisations are not prepared to handle threats effectively. 89% of hospitality leaders believe that they don’t have the expertise needed to tackle the challenge. 83% don’t think they have the right skills. 71% aren’t confident they can respond as quickly as needed.
Source: hospitalitytech.com/weak-cybersecurity-defenses-may-hinder-pandemic-recovery-hospitality-industry
Hospitality businesses are less likely to prioritise cybersecurity
Even though the risk to hospitality businesses is high, organisations operating within this sector are typically less likely than other industries to make cybersecurity a priority. 82% of businesses overall say cybersecurity is a ‘high priority’ for them, compared to just 66% of those working in hospitality.
Source: www.gov.uk/government/statistics/cyber-security-breaches-survey-2022
Cyber attacks in the hospitality sector aren’t an urban legend; they’re not one of those things that just happen to other people. They’re a real threat. And they’re happening all over the world.
The best way to prepare for them is to understand them. Understand what types of attacks are happening. Understand where hackers are gaining access. And understand the consequences. Armed with this information, you can ensure you’re taking the best approach to protect your business. Contact the team at Reliable Networks for more information about protecting your business.
