Hospitality PR Crises with Legal Consequences
There is no doubt that hospitality industries have much to gain from utilizing the expansive reach of social media. In fact, we have placed considerable emphasis on the value and essential role of social media within the hospitality industry. Still, because hospitality companies employ large numbers of staff beyond their corporate headquarters, they can be more vulnerable to the hazards associated with social media. High employee turnover and the reliance on seasonal and short-term workers further complicate efforts to control risk, prevent misconduct, and limit exposure to legal and reputational harm. By partnering with knowledgeable legal counsel, hospitality companies can implement well-crafted policies designed to reduce exposure to social media and cyber risks and provide a structured response plan in the event of a breach.
Hospitality businesses are increasingly vulnerable to the growing sophistication and frequency of cyber threats, including ransomware, phishing, and impersonation attacks. For example, “In 2024 alone, ransomware accounted for 30% of all reported incidents in [the retail and hospitality] sectors, while phishing attacks targeting customer data increased by 22% year-over-year.” Uncovering Critical Cyber Threats to Retail and Hospitality, rhisac.org.
Successful attacks can expose critical information to malicious actors. In turn, the perpetrator can access highly confidential company and customer data, creating serious operational, financial, and reputational risks.
How to Mitigate
Of course there is no way to absolutely prevent wrongdoing, but there are plenty of ways to grow a thriving business while preparing for the worst.
- Develop a clear social media policy: It is essential to create a comprehensive social media policy that clearly explains to employees the difference between posting in an official, as opposed to an unofficial, capacity. The policy should outline what content is permissible and impermissible to share online and establish guidelines for protecting customer and confidential business information. Further, the policy should also direct employees to exercise heightened caution when engaging with unfamiliar individuals on social media, particularly where the person’s identity cannot be verified. By addressing these areas, organizations can protect sensitive information, maintain compliance, and safeguard its professional reputation.
- Train employees: Leadership starts at the top, so it would be unfair to play the blame game down the ranks. The better trained and more knowledgeable the staff is, the better the outcomes for employees, the brand, and the customer. Therefore, implementing an effective training program is always a wise investment.
- Implement prophylactic security measures: Organizations should work with attorneys to implement practical security safeguards to mitigate the risk of employees falling victim to social media–based ransomware, phishing, and impersonation attacks. Prophylactic measures include: third-party cybersecurity training, a clear and accessible internal reporting mechanism for suspected threats, and a readily available IT team.
- After a breach: Equally important is informing employees of the steps to take if they realize a breach has occurred. Although immediate action cannot eliminate all harm, it can significantly mitigate the resulting damage. Organizations should encourage employees to report mistakes promptly and without fear of retaliation, so they can work with supervisors and managers to address and resolve issues in a collaborative and effective manner.. Remedial actions include: informing staff about who to notify, when to involve legal counsel, when a breach triggers mandatory reporting, and more.
Call to Action: If you require guidance from an experienced hospitality attorney or would like to better understand the legal implications of social media and related matters, please do not hesitate to contact Damian P. Conforti , Co-Chair of our Hospitality Practice Group, or Steven W. Teppler, Chair of our Cybersecurity and Data Privacy Group.