During COVID-19, the hospitality industry took a significant hit. Many restaurants and hotels closed temporarily or shut down permanently. Now, as the market revives, employers again need to be vigilant. Fraud is ever-present and fraudsters are always on the lookout for opportunities. Employee theft is a major problem in many industries, and the hotel industry is no exception.
According to the Report to the Nations on Occupational Fraud
and Abuse, a 2020 global study performed by the Association of Certified Fraud Examiners, the typical organization in the hospitality industry loses 5% to 6%
of annual revenue from fraud perpetrated by employees and guests. For example,
a hotel operator earning annual room revenue of approximately $10 million may
experience losses ranging between $500,000 and $600,000. Losses from fraud
would be amplified for organizations owning a chain of hotels.
