Impact Of Online Fraud Committed In The Cause Of Reservation In The Hospitality Industry
A very common form of online fraud is the distribution of rogue security software. Internet services can be used to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to others connected with the scheme. Hospitality online transaction is not left out. The study employs quantitative descriptive research design to examine impact of online fraud committed in the cause of reservation in the hospitality industry. This study was carried out in Mirage Hotel, 86, Agbani Rd, Achara, Enugu. Mirage Hotels is an exclusive and highly rated hotel known for its excellent services and serene environment. Based on the responses obtained, there are three high rated ways of committing online fraud which are Financial Information Compromise, Personal Information Compromise and Card detail Retain-ship Compromise. The study recommends installing effective internal and external control systems.
Table of Content
- 1.1 Background of the Study
- 1.2 Statement of the Problem
- 1.3 Objective of the Study
- 1.4 Research Questions
- 1.5 Research Hypothesis
- 1.6 Significance of the Study
- 1.7 Scope of the Study
- 1.8 Limitation of the Study
- 1.9 Definition of Terms
- 1.10 Organization of the Study
Review of Literature
- 2.1 Conceptual Framework
- 2.2 Theoretical Framework
- 2.3 Empirical Review
- 3.1 Research Design
- 3.2 Population of the Study
- 3.3 Sample Size Determination
- 3.4 Sample Size Selection Technique and Procedure
- 3.5 Research Instrument and Administration
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Validity of the Study
- 3.9 Reliability of the Study
- 3.10 Ethical Consideration
Data Presentation and Analysis
- 4.1 Data Presentation
- 4.2 Analysis of Data
- 4.3 Answering Research Questions
- 4.4 Test of Hypotheses
Summary, Conclusion and Recommendation
- 5.1 Summary
- 5.2 Conclusion
- 5.3 Recommendation
1.1 Background of the Study
The use of online services or software with Internet access to defraud victims or to otherwise take advantage of them has become paramount in the society we live in today(Rao, 2011). A very common form of online fraud is the distribution of rogue security software. Internet services can be used to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to others connected with the scheme. Hospitality online transaction is not left out. Presently most hotels, resorts and tourism centers engaged in online transaction/payment such as room reservation and other services(Kosutic, 2007). Online fraud can occur in during the cause of reservation transaction. Online fraud could result from chat rooms, email, message boards, or on websites.
Hospitality reservation online fraud could occur in two ways. The first is when a criminal approaches the hotel management for online reservation and proposes a business transaction, and then uses fraudulent means to pay for it, using such as a stolen or fake credit card(Canty, 2012). As a result, the hotel management do not get paid for the transaction. The hotel who accepts credit cards may receive achargeback for the transaction and lose money as a result.
Secondly, the most common fraud is taken place using credit cards this is when the account numbers and pin numbers are obtained by malicious people (hotel staff) when a transaction is done and they use this information to withdraw money from the guest’s. , e.g.: a person named Kushela does a transaction using a credit card with hotel staff(Aturu, 2008). During this transaction people (hotel staff) may steal this guest’s identity and act as him and request payment to an offshore account with an excuse that isn’t verified to be true and just an excuse to steal the said credit card.
Therefore, the impact of online fraud committed in the course of reservation in the hospitality industry has resulted to loss of trust, for both hoteliers and guests for each other.
1.2 Statement of Problem
Online bookings for reservation in the Hospitality Industry are paramount. Hence, the increase of online fraud in course of reservation bookings online. Criminal activity involving the perpetration of a fraud through the use of the computer or the internet can take many different forms(Canty, 2012).
One common form includes “hacking,” in which a perpetrator uses sophisticated technological tools to remotely access a secure computer or internet location. A second common criminal activity involves illegally intercepting an electronic transmission not intended for the interceptor(Kosutic, 2007). This may result in the interception of private information such as passwords,
credit card information, or other types of so-called identity theft.
The impact of online fraud on the Hospitality Industry has resulted to fear, distrust, loss of profit in business, bankruptancy etc.
1.3 Objectives of the Study
This project work is aimed at studying the impact of online fraud committed in the cause of reservation in the Hospitality Industry with special reference to Mirage Hotel Enugu.
Therefore, the objectives are as follows;
- To find out whether online fraud has been committed in the cause of reservation in Mirage Hotel Enugu.
- To determine various ways online fraud are perpetrated in the hospitality Industry
- To examine the impact of online fraud in the Hospitality Industry.
- To suggest ways of prevention of online fraud in the Hospitality Industry.
1.4 Research Questions
- Has online fraud been committed in the cause of reservation in Mirage Hotel Enugu?
- What are the various ways online fraud are perpetrated in the hospitality Industry?
- What impact does online fraud has in the Hospitality Industry.
- What are the ways of prevention of online fraud in the Hospitality Industry?
1.5 Research Hypothesis
Ho: Online fraud have not been committed in the cause of reservation in Mirage Hotel Enugu.
Ha: Online fraud have been committed in the cause of reservation in Mirage Hotel Enugu.
1.6 Significance of the Study
Online fraud has made it for people not to trust one another in business transaction. Therefore, the study will help to reveal techniques and methods to be applied to solve and prevent the problems of online fraud especially in the Hospitality Industry.
Also this work will be of benefit to students of Hospitality Management because it will serve as a secondary material for those who intend to carryout similar research.
1.7 Scope of the Study
This project is concentrated on the impact of online fraud committed in the cause of reservation in the Hospitality Industry. Its scope is limited to Mirage Hotel Enugu.
1.8 Limitation of the Study
In cause of writing this project the researcher encountered some difficulties which serve as limitation to the study. The limitations include inadequate fund, lack of response, inadequate time frame and difficulties in searching for research materials.
1.9 Definition of Terms
Online Hotel Reservation
This is a popular method for booking hotel rooms. Travellers can book rooms on a computer by using online security to protect their privacy and financial information and by using several online travel agents to compare prices and facilities at different hotels.
Wrongful or criminal deception intended to result in financial or personal gain.
Fraud that is committed using the internet is “online fraud.” Online fraud can involve financial fraud and identity theft. Fraud that is committed using the internet is “online fraud.” Online fraud can involve financial fraud and identity theft.
1.10 Organization of the Study
The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, and selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.
Summary, Conclusion And Recommendation
This chapter summarizes the findings on the impact of online fraud committed in the cause of reservation in the Hospitality Industry with special reference to Mirage Hotel Enugu. The chapter consists of summary of the study, conclusions, and recommendations.
This study was undertaken to examine the impact of online fraud committed in the hospitality industry. The Mirage hotel, Enugu state was selected as the case study. The first chapter highlighted the objectives of the study, the scope and the limitation of the study. In the second chapter, the review was undertaken to capture the reservation process, the hotel operation and online fraud. Literatures were drawn from international and local sources. In the third chapter, the study adopted the descriptive method of research. A total of 25 staff members of the Mirage Hotel, Enugu was enrolled in the study. The fourth chapter analyzed the responses and drew conclusion based on the obtained responses.
We can conclude on this study that online fraud has taken place in Mirage Hotel Enugu during the cause of reservation. Based on the responses obtained, there are three(3) high rated ways of committing online fraud which are Financial Information Compromise, Personal Information Compromise and Card detail Retain-ship Compromise. Every charge is another opportunity for an identity thief to access the information using sophisticated computer hacks and other malicious software, generally without the hotel’s knowledge. The study identified effects of Online fraud as low patronage, low trust level, emergency hospital logistics and uneasiness in business transaction.
One of the ways of preventing online fraud in the hospitality industry is by installing effective internal control systems. This is because the internal control mechanism of the hospitality industry is important as some hackers would need internal access to be able to operate. Another safety measure is the employment of ethical hacking experts. These experts serves as watchdog for the website and online activities in the hospitality industry. The third method is the re-confirmation process which should be initiated by the hotel. After sign up and booking, hotels should endeavor to call, send an email to confirm booking and identity of the client. This ways, online fraud will be minimized although not totally eradicated.
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