Statement of the Research Problem
Currently, there are a vast number of reported cases of online fraudsters who tend to break into people's systems without their consent. The threat of online fraud has an impact on operations of business in the hospitality sector. The adoption of technological advancements improves the efficiency of firms such as the hospitality industry that can guarantee them more advanced customer service and consequently tremendous profits. However, the increased use of the internet makes the hospitality industry prone to fraudsters. For instance, the Marriot Milwaukee Downtown which is a major hotel in Milwaukee, Wisconsin, faces the threat of fraudsters mainly through credit sales fraud (Milwaukee Marriott Downtown. n.d.). Besides, the use of credit cards as a payment technique faces challenges such as phishing, skimming, site cloning, false merchant sites, and processor breach hence even though the use of credit cards is a flexible payment method the insecurity constraint makes it a risky payment method.
Context of the Problem
The problem of credit card fraud as it affects the hospitality industry, in this case basing the facts on research on the Marriot Milwaukee Downtown, the issue of credit card fraud affects both the card holders and the business organizations. At times the ignorance of the card holders makes them vulnerable to fraudsters. Because of the intensity of internet use for business transactions and backup of business and individual information hackers and fraudsters have quick access to their targets' information. Through phishing, the fraudsters can solicit his information of their targets directly. Also, the waiters, cashiers, and clerks can sometimes conduct fraudulent activities such as stealing the credit card information of their customers such as the PIN numbers, telephone numbers, address, and credit limit. In restaurants, the use of plastic techniques such as smart cards contributes to credit card fraud at the POS terminals. Due to the intensifying credit card insecurity, in this case, focusing our attention on the Marriot Milwaukee Downtown we aim to identify the issue of credit sales fraud as it affects the restaurant and consequently educate the staff on the prevention methods.
Research Methodology
The descriptive survey method applied to fulfill data collection is the use of questionnaires to a sampled group of cashiers from Milwaukee Marriot Downtown. The information targeted through the utilization of the survey is the perceptions of the sampled cashiers on credit sales fraud as it affects them, the extent to which the problem inflicts on their profits, the improvement methods the restaurant applies, and their opinions on the proposed methods of curbing credit sales fraud. This data collection method involves the use of both open and closed questions to address various sample collection queries in to collect both qualitative and quantitative data. The questionnaire allows the respondents to specify their answers by ticking the checkbox next to their response. The open-ended questions employed in the survey allow respondents define their opinions.
Conclusion Statement
The issue of credit sales fraud is a global threat that mostly affects restaurants since most of them use internet-based modes of payment such as credit cards. Most of the individuals engaging in credit card fraud tend to use stolen credit cards in settlement of their financial bills. Despite the advantages of the advancements in information technology, it still poses a disadvantage to the hospitality sector. The increase in the use of the credit cards affects both individuals and companies, inflicting more losses on businesses especially in the hospitality industry forcing some companies to opt for mergers and acquisitions for the survival of their operations (Albanese, 2005). However, in future here is a likelihood of a complete translation from the use of cash to technological methods hence we should adapt to the advancements in technology and come up with better preventive methods against credit card fraud. The most violent fraud methods include phishing, skimming, triangulation, site cloning, and fake card generation. Restaurants should use layered security techniques to ensure safety.
Recommendation Statement
Credit card fraud affects most businesses especially restaurants using technologically advanced methods of payment. There are fundamental recommendations that restaurants should practice to reduce the issue of credit sales fraud. Instead of inserting card numbers manually, the cashiers should apply the physical techniques of swiping the cards. Moreover, restaurants should make sure that they do not store the credit card information locally to prevent credit card fraud. Business should utilize the chip and Pin technologies to ensure safer transactions (Douglas, 2007). Also, organizations should ensure that they upgrade their systems to ensure compatibility with the proposed technologies. Restaurants ought to check identification such that the signatures provided by the customers should be similar to the signatures on the credit card. Restaurants should ensure that they place the card scanners where customers can view the transaction process. The cashiers should be alert when monitoring the operations making sure that the credentials of the customers match both on the Card and receipt.
Key Elements of Evidence
The research relies on the findings of the investigation on Marriott Milwaukee Downtown whereby we can obtain the findings opinions of a sample of the cashiers on credit sales fraud. Moreover, various citations from scholarly sources provide a vast number of general facts and theories that are relevant in supporting the findings of the research. Also, various statistical breakdowns are essential in supporting the extent of credit sales fraud, for example, the National Editorial statistics. Besides, through the scholarly articles of different such as Albanese (2005), Douglas (2007), Sullivan (2010), and Schaeffer (2008), various facts arise on the issue of credit card fraud. Through various figures such as the number of estimates losses by Schaffer (2008), we can obtain different statistical analysis showing the annual losses due to credit card fraud. Ultimately, various internet sources play a great role in providing relevant facts.
References
Milwaukee Marriott Downtown. (n.d.). Retrieved November 29, 2015, from http://www.marriott.com/hotels/travel/mkedn-milwaukee-marriott-downtown/
Douglas, A. C. (2007). CHIP and PIN Technology: A POS Solution for Restaurants. Journal of Foodservice Business Research, 10(1), 101-112.
Schaeffer, M. S. (2008). Fraud in Accounts Payable: How to Prevent It. Hoboken, N.J.: Wiley.
Sullivan, R. J. (2010). The Changing Nature of U.S. Card Payment Fraud: Industry and Public Policy Options. Economic Review (01612387), 95(2), 101-133.
Albanese, J. S. (2005). Fraud: The Characteristic Crime of the Twenty-First Century. Trends in Organized Crime, 8(4), 6-14.
