- Email: [email protected]
Mini bars — maxi bills
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crime we suspect that few countermeasures are being utilised widely. Where the major asset of a company is a computerised address file which is used to generate the majority of revenues the outcome of widespread 'pirating' is only too predictable.
MINI BILLS
BARS
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MAXI
One of the most pleasant hotels in Europe, situated in Geneva, is also one of the most expensive so far as computerised bar bills are In each room, a mini bar is connected to a central concerned. computer. Each time a door in the bar is opened, a pulse is sent to the CPU and an appropriate amount charged to the guest's bill. The trouble is that pulses sometimes get sent whether the door is opened or not and whether or not any drink is consumed. A recent visitor to the hotel complained to the reception clerk about an overcharge on his bill; this time it was only $10 dollars, but in this time of recession, $10 dollars is worth saving. The clerk initially did not appear to be too concerned, and had given the guest his Diners Voucher to sign before the detailed bill had been produced. The guest refused to sign anything until he saw the full bill. This quite clearly showed charges for a number of drinks which just had not been consumed. The guest said, "this happens to me just about every time I come here. Don't you get fed up with customer complaints?" The clerk said that they were not happy with the system and that there were, in fact, frequent faults... he then continued to utter the classic line "...but we can't lose".
Customer Zoses
always
The angry guest explained that it was always the customer who lost and that the computer was a disgrace. The clerk agreed to deduct $10 off the bill and that, so far as he was concerned, was the end of the story. It seems to us that there are a number of possibilities case, including:
in this
management does not realise that overcharging is on the scale it is and has inadequate records to discover that windfall profits are being made on ghost bar sales management does not realise the problem, though people who fill up the bars do, and they keep the excess for themselves management does realise the problem. The last alternative, in an otherwise well run hotel, would be the favourite. There must be a reconciliation of stock and bar refills and whatever costing system is used, the surplus should show up. The possible benefits in this case are by no means small. One frequent visitor to the hotel, having stayed there 14 times during the past year, has been overcharged on 12 occasions. The average overcharge was about 40 francs. If we assume the hotel was 200 rooms and an occupancy rate of 80% and that half the guests use their bar, the total in the course of a year could be as high as 1 million Swiss Francs (f250 000), which is not an inconsiderable sum just to fall out of the sky. So when you next hear of commercial victims of computer errors
WHIR=
Volume 4 Number 10
(and
-
12
-
fraud) bear a thought for the private individual who can be similarly deprived. encourage employees to check their hotel bills most carefully and to complain and argue at even the smallest overcharge.
Also,
SEMINAR ON CRYPTOGRAPHY
To-date, a total of over 1000 people have attended Professor Martin Hellman's special seminars on 'Cryptography and Data Security' and the feedback we have received is that they have proved informative to old hands and novices alike. Another is scheduled for later this year at Los Angeles (3-5 November). For more information on this or any other Hellman Associates' activities contact: Hellman Associates, 299 California Ave, Palo Alto, CA 94306, USA; Tel: 415 328 4091.
11 -
crime we suspect that few countermeasures are being utilised widely. Where the major asset of a company is a computerised address file which is used to generate the majority of revenues the outcome of widespread 'pirating' is only too predictable.
MINI BILLS
BARS
-
MAXI
One of the most pleasant hotels in Europe, situated in Geneva, is also one of the most expensive so far as computerised bar bills are In each room, a mini bar is connected to a central concerned. computer. Each time a door in the bar is opened, a pulse is sent to the CPU and an appropriate amount charged to the guest's bill. The trouble is that pulses sometimes get sent whether the door is opened or not and whether or not any drink is consumed. A recent visitor to the hotel complained to the reception clerk about an overcharge on his bill; this time it was only $10 dollars, but in this time of recession, $10 dollars is worth saving. The clerk initially did not appear to be too concerned, and had given the guest his Diners Voucher to sign before the detailed bill had been produced. The guest refused to sign anything until he saw the full bill. This quite clearly showed charges for a number of drinks which just had not been consumed. The guest said, "this happens to me just about every time I come here. Don't you get fed up with customer complaints?" The clerk said that they were not happy with the system and that there were, in fact, frequent faults... he then continued to utter the classic line "...but we can't lose".
Customer Zoses
always
The angry guest explained that it was always the customer who lost and that the computer was a disgrace. The clerk agreed to deduct $10 off the bill and that, so far as he was concerned, was the end of the story. It seems to us that there are a number of possibilities case, including:
in this
management does not realise that overcharging is on the scale it is and has inadequate records to discover that windfall profits are being made on ghost bar sales management does not realise the problem, though people who fill up the bars do, and they keep the excess for themselves management does realise the problem. The last alternative, in an otherwise well run hotel, would be the favourite. There must be a reconciliation of stock and bar refills and whatever costing system is used, the surplus should show up. The possible benefits in this case are by no means small. One frequent visitor to the hotel, having stayed there 14 times during the past year, has been overcharged on 12 occasions. The average overcharge was about 40 francs. If we assume the hotel was 200 rooms and an occupancy rate of 80% and that half the guests use their bar, the total in the course of a year could be as high as 1 million Swiss Francs (f250 000), which is not an inconsiderable sum just to fall out of the sky. So when you next hear of commercial victims of computer errors
WHIR=
Volume 4 Number 10
(and
-
12
-
fraud) bear a thought for the private individual who can be similarly deprived. encourage employees to check their hotel bills most carefully and to complain and argue at even the smallest overcharge.
Also,
SEMINAR ON CRYPTOGRAPHY
To-date, a total of over 1000 people have attended Professor Martin Hellman's special seminars on 'Cryptography and Data Security' and the feedback we have received is that they have proved informative to old hands and novices alike. Another is scheduled for later this year at Los Angeles (3-5 November). For more information on this or any other Hellman Associates' activities contact: Hellman Associates, 299 California Ave, Palo Alto, CA 94306, USA; Tel: 415 328 4091.