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The Data Scientist

Hotel data security

How To Reinforce Your Hotel Accounts: 5 Ways To Improve Data Security

Data security is set to become one of the most important facets of running a hotel as digital threats are constantly evolving and posing new challenges to hotel chains around the world.

In 2024, IBM reported that the global average cost of a data breach was USD 4.88M – representing a 10% increase over 2023.

(Source: IBM)

With so many transactions taking place on a daily basis and huge amounts of customer data passing through various systems, now’s the time to bolster your cybersecurity measures and improve your overall data security.

In this blog post, you’ll learn how the POS for your hotel should be an important part of your data security approach, and what you can do to mitigate against cyber attacks.

1. Upgrade to an Advanced POS System

Long gone are the days of relying on your POS for simple transaction processing and nothing else. In 2025, you need your POS system to work harder for you to protect customer data and act as the first line of defence in a world full of digital threats.

So, what should you look for in an advanced POS system to protect your data and accounting systems better?

  • End-to-end encryption – This will protect your transactions throughout the process

  • Multi-factor authentication – With an extra layer of security for accessing confidential data, you reduce the risk of unauthorised access

  • Real-time fraud detection algorithms – Pick up on threats in real-time with AI and machine learning technology

  • Automated security patch updates – Make sure your systems are regularly updated and trained on the latest data

With an advanced POS system, you’ll have the ability to be proactive with your approach to cybersecurity, flagging suspicious activities before they have the potential to become data breaches.

2. Update Your Access Management

One of the easiest ways for cybercriminals to access your sensitive data is from the inside. If you give too much access to individuals in your organisation, you could be opening the doors to an attack from within – while also making it easier for hackers to enter your systems.

As such, it’s critically important that you create a hierarchical system of access levels for different staff roles within your hotel. Set up role-based permissions that restrict access to confidential data, so you know that only the people who need access to that data can view it.

For a lot of hotels and other organisations in the hospitality industry, it’s easy to go months without re-evaluating access credentials, which could increase the risks of a data breach.

Set up a regular audit for your access credentials to make sure you’re safe from cyber threats.

3. Implement a Robust Data Encryption Strategy

It isn’t enough to control who has access to important data at your hotel; you also need to make sure that all data that comes in and outside of your hotel is securely encrypted at every step of the journey – including any 3rd parties.

This includes credit card details, guest information, and booking records.

Make sure you encrypt your data both while it’s in transit and while it’s at rest, which means from the moment someone makes a payment at the front desk to the moment the data reaches your hotel’s system.

Look for industry-standard encryption protocols (AES-256) where possible, as this will offer the best protection for your data.

You can also use secure cloud storage solutions if you’re concerned about your data. 40% of data breaches involved data stored in multiple places in 2024, so going all in on one solution can be the best way to keep your data safe.

4. Carry Out Regular Security Audits

The best way to protect your data over time as threats evolve is to carry out regular security audits.

Be proactive with your approach to security management and perform quarterly security audits where you can consult external cybersecurity experts to get a comprehensive assessment of your current systems.

42% of leaders aren’t clear on who’s responsible for cyber resilience and recovery, so it pays to come up with a plan for how you respond as an organisation to potential threats. Think about what actions you need to take to prevent the threat from escalating and causing real damage.

5. Consider Using Threat Detection Technologies

Consider integrating cybersecurity tools with your existing POS systems if you want an extra layer of security against cyber threats.

These days, you can invest in AI-powered threat detection systems that rely on sophisticated machine learning algorithms to identify and flag unusual or suspicious activity taking place in your system.

The IBM 2024 data breach report suggested that there was an average cost saving of USD 2.22M for organisations that used security AI and automation in prevention versus those that didn’t.

You can set up real-time alerts for potential security threats when you implement this kind of technology, so you can respond before it’s too late.

A significant 51% of investments made following a data breach are in threat detection and response technologies, showing just how important they can be for prevention.

(Source: IBM)

Bolstering Your Hotel’s Cybersecurity

A good POS system for your hotel can do so much more than process simple transactions. It can provide a complete security ecosystem that keeps you, your employees, and your customers safe from cyber threats.