NCJ Number
92650
Date Published
1984
Length
5 pages
Annotation
Despite the rapid proliferation of Electronic Funds Transfer Systems (EFTS), no system exists for measuring crime and abuse in this area.
Abstract
This report highlights the impact of automation on financial transaction, identifies potential areas of abuse, and discusses issues relevant to measuring EFTS crime. As usage of electronic funds transfer systems increases, concern grows over the potential criminal abuse of this revolutionary development. The most common EFTS technology is the automated teller machine (ATM). In this area, there are four major forms of abuse or fraud: unauthorized use of access devices or cards, fraud by a cardholder claiming a loss that did not occur, insider manipulation ranging from card theft to electronic attacks on the computer system, and physical attack on ATM machines and cardholders. In the wire transfer area of EFTS, false 'errors' by operators, unauthorized usage, and altered transactions are the main types of abuse. Existing criminal law does not directly address the unique elements of EFTS crime. Less than half of the States have laws applicable to EFTS crime, and those that do have relatively new laws, the effects of which cannot yet be measured. Because of the rapid proliferation of ATM operations, bankers are concerned about the recent fraud experiences of the credit card companies. They are also sensitive about the potential for loss in wire transfer, where the sums can be quite large. Thus far, there are no data for measuring either type of crime. Banking associations, the Federal Government, and Congress all recognize the dearth of EFTS crime data. In response to the need for this data, the Bureau of Justice Statistics is supporting a study to establish measurement. Exhibits and notes are provided.