Report Details:
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Price: |
Report Code |
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BREP041 |
For delivery in electronic format: Rs. 1000; For delivery through courier (within India): Rs. 1000 + Shipping & Handling Charges extraThemesBusiness Reports |
Report Length |
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30 Pages |
Period |
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2000 - 2005 |
Organization |
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Pub Date |
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2007 |
Teaching Note |
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Not Available |
Countries
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World |
Industry |
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Banking and
Financial Services |
Executive Summary
The Automatic Teller
Machine (ATM) was first commercially introduced in the 1960s. By 2005,
there were over 1.5 million ATMs installed worldwide. The introduction
of the ATM proved to be an important technological development that
enabled financial institutions to provide services to their customers in
a 24X7 environment. The ATM has enhanced the convenience of customers by
enabling them to access their cash wherever required from the nearest
ATM.
However, as the banker and the customer are not face-to-face, there
is the risk of fraud, which may affect the customers and also the bank's
reputation.
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Unscrupulous individuals have devised a number of methods to commit ATM
frauds and these have become more sophisticated in nature over the
years. ATM fraud has evolved from the conventional 'trick of shoulder
surfing'to steal the PIN of customers at the ATM, to more sophisticated
methods such as the Lebanese Loop, use of electronic gadgets, card
jamming, card swapping, diversions, website spoofing, or phishing, ATM
burglary, etc., which can be used to steal cash or ATM cards. Tricks
used by fraudsters for stealing customers'personal details include
skimmer devices, fake PIN pad overlay, and PIN interception. Though the
highest numbers of ATMs worldwide are installed in the Asia Pacific
region, ATM frauds are more prevalent in Europe. The UK is often termed
as the capital of Europe in terms of ATM frauds.
Financial institutions have implemented many strategies to upgrade the
security at their ATMs and reduce scope for fraud. These include
choosing a safe location for installing the ATM, installation of
surveillance video cameras, remote monitoring, anti-card skimming
solutions, and increasing consumer awareness by informing them of
various methods of safeguarding their personal information while
transacting at the ATM or on the Internet. In addition, a number of
organizations across the world such as the NCR Corporation, Barclays
Bank and the MasterCard have introduced fraud detection solutions.
Financial institutions worldwide are shifting from magnetic strip cards
to chip cards to prevent fraudsters from stealing the personal data of
customers. There are also other challenges such as lack of consumer
awareness, declining consumer confidence, and the fact that some
financial organizations might conceal small frauds so as to maintain
their goodwill in the industry.
Anti-money laundering regulations are being implemented worldwide to
prevent ATM frauds. UL 291 Level 1 quality standards are being followed
by ATM manufacturers to make them tamper-proof. In the UK, ICC Financial
Investigation Bureau, the Fraud Intelligence Bureau, and DCPCU (The
Dedicated Check and Plastic Crime Unit) have been set up to deal with
ATM frauds. To safeguard consumer's interests, Japan has implemented
regulations that direct financial organizations to refund fraud victims.
Enhanced security at ATMs and increasing consumer awareness is estimated
to decrease ATM frauds, and boost consumer confidence for using ATMs and
transacting online.
Keywords
Automatic Teller Machine (ATM) Fraud, Regulatory Environment,
Banking and Financial Services, Phishing, Risk Management, Customer Information
Protection, Barclays Bank, MasterCard, Visa Corporation, NCR Corporation,
Citibank, Europe, Asia Pacific, Fraud Intelligence Bureau, Dedicated Check and
Plastic Crime Unit, ATM Credit Debit Card, Financial Investigation Bureau, ICC
Commercial Crime Services, Consumer Protection Law Policy
A Report on Global ATM Frauds
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