PoS processing system affected

Jun 30, 2010 15:22 GMT  ·  By
Destination Hotels & Resorts has its credit card processing system compromised with malware
   Destination Hotels & Resorts has its credit card processing system compromised with malware

Unidentified hackers have managed to compromise the credit card processing system at Destination Hotels & Resorts. The company, which operates a chain of hotels in the United States, claims that only credit cards that were physically swiped were affected.

Destination is headquartered in Englewood, Colorado, but runs over thirty hotels and resorts nationwide, including in popular vacation spots like Aspen, Lake Tahoe or Maui. In a press release posted on its website, the company announced that it was the victim of a credit card fraud scheme, which involved malware being installed into its point-of-sale processing system. It appears that the attackers operated remotely.

The credit cards of guests who stayed at 21 of the company's hotels recently have been compromised, but no personally identifiable information, like addresses or social security numbers, has been exposed. Destination also noted that transactions that didn't involve credit cards being physically swiped, like those over the Internet, have not been affected.

The company is currently notifying affected individuals, but did not mention whether they will be offered free credit monitoring services. Outside security experts have been brought in to resolve the problem and allow normal operations to be resumed.

"We are concerned for our guests and we sincerely regret any inconvenience this may cause them. We know we are not the first hotel company to be victimized by this kind of attack, but our greatest concern is for our guests who may be affected as well," Charlie Peck, president and chief operating officer of Destination, commented.

The full impact of the incident is still being evaluated and the FBI has launched an investigation into the security breach. The Statesman reports that Driskill Hotel in downtown Austin is one of the affected hotels. "We are looking at losses in the hundreds of thousands, so it is pretty serious," Austin police Sgt. Matt Greer, told the newspaper.