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Smart Hotel Technologies and the Cybersecurity Risks They Bring

July 15, 2024  |  Theodoros Karasavvas

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Smart technologies are being quickly adopted by the hospitality sector in order to improve guest experiences and improve operations. However, hotels are also popular targets for cybercriminals due to their extensive collection of data and increased connectivity.

These linked devices have flaws that could allow for illegal access and data breaches, risking the security and privacy of visitors. This article examines the cybersecurity risks related to these technologies and provides helpful advice on how passengers may protect their data while taking advantage of these benefits.

Smart Technologies and the Risks that They Bring

A new wave of technology in the hotel sector promises to improve visitor experiences and operational effectiveness. Smart technologies like IoT-enabled gadgets and AI-powered services are being incorporated into modern hotels. These include mobile check-in, keyless entry for a quick, contactless experience, AI-powered chatbots and automated concierge systems for smooth guest interactions, smart in-room entertainment systems that allow guests to control various aspects of their environment via voice commands or smartphone apps, and smart thermostats for customized climate control.

While these innovations significantly enhance convenience and personalization, they also introduce considerable cybersecurity risks. The interconnected nature of these devices and the vast amounts of data they handle make hotels and Airbnb rooms attractive targets for cybercriminals.

Here are some of the most dangerous cybersecurity threats facing modern hospitality settings.

Data Breaches

Data breaches are a major concern in the hospitality industry due to the vast amounts of sensitive guest information collected and stored. High-profile incidents, such as the Marriott data breach in 2018, which affected up to 500 million guest records, underscore the severity of this threat. Compromised data often includes personal identification details, credit card information, and even passport numbers, leading to significant financial and reputational damage for the affected hotels and Airbnb hosts​.

IoT Vulnerabilities

The globalization of IoT devices in accommodation businesses like hotels and Airbnb properties increases the attack surface for cybercriminals. Each connected device represents a potential entry point for hackers. For instance, vulnerabilities in smart thermostats or lighting systems can be exploited to gain access to the broader network, compromising other critical systems and guest data​.

Phishing and Social Engineering

Phishing attacks and social engineering tactics are prevalent in the hospitality industry. Cybercriminals often target staff and guests with deceptive emails or messages designed to steal login credentials or other sensitive information. These attacks can lead to unauthorized access to systems and data breaches​.

Point of Sale (POS) Systems

POS systems handle numerous financial transactions, making them attractive to hackers. Attacks on POS systems can involve malware that captures credit card information before it is encrypted. Such incidents have occurred at several major hotel chains, including Hilton, which faced significant data breaches due to vulnerabilities in their POS systems​.

Hotel and Airbnb Wi-Fi Networks

Unsecured Wi-Fi networks in hotels and Airbnb rentals pose significant risks to both guests and operations. Cybercriminals can exploit vulnerabilities in these networks to intercept data transmitted by guests or to launch attacks on internal systems. This can lead to significant data breaches and operational disruptions​.

Third-Party Vendors

Hotels and Airbnb hosts often rely on third-party vendors for various services, including payment processing and guest management systems. These vendors can introduce additional cybersecurity risks if they do not adhere to robust security standards. A breach at a third-party vendor can compromise data and systems, making it vital to ensure partners follow strict cybersecurity protocols​.

Ransomware

Ransomware attacks, where hackers lock systems and demand a ransom to restore access, are becoming increasingly common. These attacks can cripple operations, preventing guests from checking in or out and disrupting services. The financial and operational impact of ransomware attacks can be devastating, leading to significant losses and reputational damage​.

Cybersecurity Best Practices for Hotels

While travelers can adopt practical tips to protect their personal information—such as using secure networks, creating strong passwords, monitoring bank statements, and being cautious with personal information—the primary responsibility for cybersecurity rests with the hotels. According to John Nousis, a seasoned professional in the hospitality industry and co-founder of Travelmyth, a hotel search engine focusing on travelers' specific interests and needs, "In today's digital age, ensuring the cybersecurity of our guests is as important as providing them with a comfortable stay. At Travelmyth, we help travelers, especially professionals, find hotels that meet their specific needs, including those with strong cybersecurity measures."

But how can hotels achieve the best possible security for their clients? There are certain practices every hotel should follow in 2024 according to Mr. Nousis. Here are some of his suggestions:

Network Segmentation

Hotels should separate guest and administrative networks to prevent unauthorized access. By isolating guest Wi-Fi from internal systems, hotels can limit the potential damage of a cyber attack. This approach helps contain breaches and protects sensitive operational data from being accessed through guest networks​.

Multi-Factor Authentication (MFA)

Implementing MFA adds an extra layer of security to hotel systems. Requiring multiple forms of authentication, such as a password and biometric verification, significantly enhances protection against unauthorized access. This is particularly important for accessing sensitive data and critical systems​.

Regular Security Audits and Updates

Regular security audits help identify vulnerabilities in hotel systems. Keeping software and hardware up-to-date ensures that known security issues are addressed promptly. Frequent updates and patches are essential to protect against the latest cyber threats​.

Employee Training

Educating staff about cybersecurity threats and best practices is crucial. Regular training sessions can help employees recognize phishing attempts and other social engineering tactics. A well-informed staff is a strong line of defense against cyber attacks​.

“By adopting these cybersecurity best practices, hotels can significantly reduce the risk of cyber threats and ensure a safer environment for their guests. Travelers, meanwhile, should remain aware and follow basic cybersecurity tips to protect their personal information while enjoying these modern conveniences,” Mr. Nousis concludes.

Conclusion

The cybersecurity environment in the hotel sector will change as smart technologies continue to progress. Though they are going to keep improving visitor experiences, AI systems and IoT devices will also become more advanced and provide new security risks. For the protection of their visitors' data, hotels need to take the initiative to have strong cybersecurity safeguards in place. In this continuous effort, regular updates, network segmentation, multi-factor authentication, and comprehensive employee training serve as key factors.

The future will demand even more awareness and innovation in cybersecurity practices. By staying ahead of potential threats and continuously improving their defenses, hotels can ensure that the benefits of smart technologies are enjoyed safely. Both hotels and travelers must remain informed and cautious, embracing the conveniences of modern technology while prioritizing security.

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