Posts Tagged: Mandarin Oriental breach

Jan 16

Hyatt Card Breach Hit 250 Hotels in 50 Nations

If you stayed, ate or played at a Hyatt hotel between Aug. 13 and Dec. 8, 2015, there’s a good chance your credit or debit card data was stolen by unknown cyber thieves who infiltrated many of the hotel chain’s payment systems. In its first disclosure about the scope of a breach acknowledged last month, Hyatt Hotels Corp. says the intrusion likely affected guests at 250 hotels in roughly 50 countries.

hyattIn a statement released Thursday, Hyatt said the majority of the payment systems compromised by card-stealing malware were at restaurants within the hotels, and that a “small percentage of the at-risk cards were used at spas, golf shops, parking and a limited number of front desks.” The list of affected hotels is here.

Chicago-based Hyatt joins a crowded list of other hotel chains similarly breached in the past year, including Hilton, Starwood, Mandarin Oriental, White Lodging (twice) and the Trump Collection.


U.S. banks have been transitioning to offering chip-based credit and debit cards, and a greater number of retailers are installing checkout systems that can read customer card data off the chip. The chip encrypts the card data and makes it much more difficult and expensive for thieves to counterfeit cards.

However, most of these chip cards will still hold customer data in plain text on the card’s magnetic stripe, and U.S. merchants that continue to allow customers to swipe the stripe or who do not have chip card readers in place face shouldering all of the liability for any transactions later determined to be fraudulent.

The United States is the last of the G20 nations to enact this liability shift, and many countries that have transitioned to chip card technology have done so through government fiat. Those nations also almost uniformly have seen card counterfeiting fraud go way down while thieves shift their attention to targeting e-commerce providers.

Although cyber thieves still steal card data off the magnetic stripe from customers of banks in nations that long ago shifted to chip-cards, that card data is typically shipped to thieves here in the United States, who can counterfeit the cards and use them to steal merchandise from U.S.-based big box retailers.

What’s remarkable about the U.S. experiment with moving to chip cards is that the discussion about whether and when to move to more physical security (chips) in credit and debit cards has played out almost entirely apart from the move to impose expensive and increasingly labyrinthine compliance regulations (PCI) on merchants that wish to process or accept card transactions.
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Nov 15

Starwood Hotels Warns of Credit Card Breach

Starwood Hotels & Resorts Worldwide today warned that malware designed to help cyber thieves steal credit and debit card data was found on point-of-sale cash registers at some of the company’s hotels in North America. The disclosure makes Starwood just the latest in a recent string of hotel chains to acknowledge credit card breach investigations, and comes days after the company announced its acquisition by Marriott International.


Starwood published a list (PDF) of more than 50 of its hotel properties — mostly Sheraton and Westin locations across the United States and Canada — that were impacted by the breach. According to that list, the breach started as early as November 2014 in some locations, ending sometime in April or May for all affected hotels.

As with other ongoing hotel breaches, the malware that hit Starwood properties affected certain restaurants, gift shops and other point of sale systems at the relevant Starwood properties.

“We have no indication at this time that our guest reservation or Starwood Preferred Guest membership systems were impacted,” Starwood President Sergio Rivera wrote in a letter to affected customers. “The malware was designed to collect certain payment card information, including cardholder name, payment card number, security code and expiration date. There is no evidence that other customer information, such as contact information, Social Security numbers or PINs, were affected by this issue.” Continue reading →

Jul 15

Banks: Card Breach at Trump Hotel Properties

The Trump Hotel Collection, a string of luxury hotel properties tied to business magnate and now Republican presidential candidate Donald Trump, appears to be the latest victim of a credit card breach, according to data shared by several U.S.-based banks.

Trump International Hotel and Tower in Chicago.

Trump International Hotel and Tower in Chicago.

Contacted regarding reports from sources at several banks who traced a pattern of fraudulent debit and credit card charges to accounts that had all been used at Trump hotels, the company declined multiple requests for comment.

Update, 4:56 p.m. ET: The Trump Organization just acknowledged the issue with a brief statement from Eric Trump, executive vice president of development and acquisitions: “Like virtually every other company these days, we have been alerted to potential suspicious credit card activity and are in the midst of a thorough investigation to determine whether it involves any of our properties,” the statement reads. “We are committed to safeguarding all guests’ personal information and will continue to do so vigilantly.”

Original story:

But sources in the financial industry say they have little doubt that Trump properties in several U.S. locations — including Chicago, Honolulu, Las Vegas, Los Angeles, Miami, and New York — are dealing with a card breach that appears to extend back to at least February 2015.

If confirmed, the incident would be the latest in a long string of credit card breaches involving hotel brands, restaurants and retail establishments. In March, upscale hotel chain Mandarin Oriental disclosed a compromise. The following month, hotel franchising firm White Lodging acknowledged that, for the second time in 12 months, card processing systems at several of its locations were breached by hackers.

It is likely that the huge number of card breaches at U.S.-based organizations over the past year represents a response by fraudsters to upcoming changes in the United States designed to make credit and debit cards more difficult and expensive to counterfeit. Non-chip cards store cardholder data on a magnetic stripe, which can be trivially copied and re-encoded onto virtually anything else with a magnetic stripe. Continue reading →