With consumers becoming more dependent on ATMs and the proliferation of ATM debit cards, computer crime in this area is more likely to increase. Banks will have to find better methods to eliminate unauthorized use through hardware or software solutions, while keeping security costs down. The purpose of this case study is to explain how ATM fraud occurs, and possible solutions banks can implement to prevent such loss. The major appeal of these machines is convenience. ATMs allow customers access to get cash, pay bills, purchase or sell securities, or make deposits twenty-four hours a day.
Customers access their bank accounts through a plastic bankcard.
This card has a magnetic strip on the back containing a password and relevant account information. Citibank, which pioneered a full ATM network 23 years ago, now has a worldwide network covering offices in over 100 countries around the world. With so many machines available to account holders, it's no wonder that illegal users take advantage of this technology. These features only ensure that certain procedures are followed, and cannot tell whether the person with the card and password is authorized to use it. To stop a criminal, who has a stolen ATM card and password, system security measures must be improved to identify the person using the card.