Chapter 15 - Electronic Funds Transfer Systems, Security, Privacy, and Computer Crime

Abstract

This chapter provides an overview of electronic funds transfer (EFT) systems, security, privacy, and computer crime. Electronic money refers to EFT, the process by which money is transferred electronically by computers and data communications systems from one account to another without the use of written checks. Use of cash and checks has been reduced considerably. It is becoming more and more common for employers' computers to deposit salaries directly into employees' bank accounts, so workers do not have to wait for checks to clear. It is also becoming routine for bills to be paid by telephone and for preauthorized computer-initiated payments to cover regular installment loans. Automated teller machines (ATMs) have been well received by the general public, and their use is growing rapidly. Because ATM transactions are more economical for the banks than teller transactions, some banks have considered the possibility of charging fees for teller transactions. Point-of-sale terminals facilitate retail transactions in stores, supermarkets, and other places of business.