Fraud In The Hotel Industry
Fraud in the hotel industry may often affect the strong imperatives of the hotel's imperative service as well as the exercising of necessary controls of the industry.
This kind of fraud can be suffered by a hotel many times before new controls are initiated. Due to different cases and demonstrations of frauds in the hotel industry there could be special problems that may arise as well.
With these, effective controls should be reconciled with the customer services in the hotel. It only shows that fraud is the biggest issue that can be faced by any hotel industry.
Stolen credit cards are one form of fraud in the hotel industry that causes many hotels and other businesses a big headache. Because of this, mandated procedures are needed to be followed by the hotel that came from the credit card companies.
If a credit card of the customer was stolen at the hotel premises, the charges will be charged on the credit card of the front desk clerk at the meantime. But when a customer requests for a refund then the charges will be shouldered by the front desk clerk.
Why does fraud in the hotel industry usually occur? Well reasons for these are because of opportunities and motives, which are the essential components so far.
With just simple motivations of greed, fraud in the hotel industry is possible to occur. Another reason of fraud in the hotel industry are weak internal controls as well as collusion with the colleagues that may create opportunities to do the fraud.
To be able to prevent fraud in the hotel industry from happening it is important that hotel organizations must focus on the integrity risk management on areas where opportunities of fraud is high.
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