NCJ Number
75719
Date Published
1981
Length
306 pages
Annotation
A lawyer and former prosecutor discusses the technology of electronic funds transfer systems (EFTS) and the potential law enforcement and consumer problems and challenges EFTS pose.
Abstract
EFTS transfer funds and related financial data electronically, with the aid of computers. They provide direct deposit of checks, credit card authorizations, and other services, and can take the form of sophisticated point-of-sale systems, automated teller machines, and automated clearinghouse facilities. Rudimentary EFTS are already in daily operation. However, a system storing large amounts of easily accessible confidential data may give rise to serious invasions of privacy. Legislators will have to clarify laws regarding liability, system error, legal proof of payment, reversibility of transactions, and fraud, EFTS security will become a problem, as a new class of electronic felons may bilk the public of billions of dollars. The issue of who will bear the costs for the systems has yet to be addressed; only large financial institutions may be able to afford the technology. Other issues discussed include the basics of a computer operation, legal problems asssociated with branching and sharing of EFTS, potential civil liability issues, security countermeasures, and the potential economic impact and international growth of EFTS. A sample computer security questionnaire, a security checklist for EFTS, a list of trade groups, and relevant State and Federal legislation are appended. A glossary of EFTS terms, about 100 references, an index, footnotes, and an analysis of computer crime costs are also included.