Independent contractors play a significant role in the hospitality and entertainment industries. Many performers, entertainers, consultants, security personnel, and event staff are typically independent contractors. With the continued evolution of technology and companies digitizing their payroll, scheduling, and contractor management systems, there has been an exponential increase in the number of sensitive records stored on the Internet.
These issues have gained significant coverage in the media since the RCI Hospitality Holdings, Inc. data breach investigation became public due to the potential exposure of independent contractors’ personal identifying information (PII). While cybersecurity incidents can be very different, this incident illustrates how organizations in the hospitality industry, in general, have similar issues.
Apart from contractors not being traditional employees, contractors engage with a multitude of platforms across numerous vendors and organizations. Therefore, independent contractors’ personal identifying information could be retained in multiple databases and be rendered vulnerable to unauthorized intrusion if an organization's security measures are compromised.
What Information Do Contractors Typically Share?
In order to meet tax, payment, and identification requirements, contractors typically have to produce:
- Full legal name
- Contact information
- Social security numbers
- Driver's license number
- Tax identification documents
- Bank account information for payments
These documents contain very sensitive information, which makes them targets for cybercriminals trying to commit either identity theft or financial fraud.
Why Hospitality Companies Face Unique Security Challenges
Businesses in hospitality and entertainment often own and operate many different places, as well as use different third-party systems. So, providing all of these different areas and environments with managed access can be very difficult from a cyber security perspective. Some examples of the cyber security challenges these businesses face are:
* Decentralization of data storage
* Risks associated with third party vendors
* Utilizing legacy technology systems
* High employee and contractor turnover
* Increased exposure to phishing attacks.
Even organizations that have implemented a comprehensive security program can face substantial risks when trying to manage large volumes of personal information in an interconnected fashion.
Steps Contractors Can Take to Protect Their Information
Independent contractors can minimize their risk of data breaches by implementing various cybersecurity best practices:
Constantly Checking Bank Accounts
Regularly check your bank account statements, credit history, and other financial records for any signs of fraudulent activity.
Use Secure Passwords
Whenever you have the option to enable two-factor authentication, use it to protect yourself even more.
Be Careful With Email Communication
Most cyber-attacks start with an email that tries to trick the recipient into giving away their ID and Passwords or personal information.
Secure Your Personal Devices
Your personal devices need to have all operating system, web browser and antivirus updates installed on them so they can be secured against known vulnerabilities.
As Businesses Continue Growing Their Digital Business Model, Protecting Contractor's Data Will Remain High Priority
As more businesses leverage the internet for their operations, they will continue evaluating their data security practices. Businesses that collect personal data from customers need to constantly re-evaluate their security practices while at the same time, contractors must understand their potential risk and the steps they can take to prevent any risk.
Cyber Security Incidents Are A Constant Reminder That Data Security Is Not Just An IT Problem And Is A Business & Individual Responsibility.
