Automated Teller Machine Fraud Research Articles

DETERMINATION OF FINANCIAL AWARENESS ABOUT ATM FRAUDS BASED ON DEMOGRAPHICAL FACTORS IN AKOLA AND AMRAVATI DISTRICTS OF MAHARASHTRA

After the wider use of Automated Teller Machine (ATM), the number of frauds has increased rapidly. In Maharashtra state, financial cyber frauds are highest. There were less crimes regarding ATMs, in Akola district compared to district of Amravati. The main objective of the research paper is to find out the awareness in respect to ATM frauds in Akola and Amravati districts of Maharashtra using demographic factors. For primary data collection, a structured questionnaire was prepared and 500 responses were recorded i.e. 250 each from Akola and Amravati districts of Maharashtra state. Secondary data was collected from the web site for the study of financial cyber frauds in and the data from NCRB website was also considered to check the Cyber Crimes in Akola and Amravati District. For analysis of the data, a statistically independent Chi-Square test was conducted to check the association of demographic factors with ATM fraud awareness. This research paper is based on financial awareness of ATM frauds.

E-Fraud and Bank Performance: Empirical Evidence from Nigeria

This study examines e-fraud and bank performance: empirical evidence from Nigeria. Expo facto research design was used while time series data for the period of ten (10) years sourced from Central Bank of Nigeria (CBN) statistical Bulletin. Unit root test and correlation matrix was used as a diagnostic tests. The Augmented Dickey Fuller (ADF) test is used to test for stationarity. The results of the stationarity or unit root test show that all the variables, return on equity (ROE), Automated Teller Machine Fraud (ATF) and Online Fraud (OLF) have unit roots and are only stationary at first difference and integrated of order one I (1). The fully modified least squares regression (FMOLS) is used for the analysis. The result of the study indicates that both variables, online fraud, (OLF) and ATM fraud (ATF) show negative effect on bank performance proxied in Nigeria in line with a priori expectation. In order words, fraud and fraudulent activities impede on the profitability of the banks. Based on the results obtained from the regression and the analysis conducted, the study recommends among others that bank managers should strengthen their internal control systems at all times. The regulatory authorities should be up and doing concerning their supervisory functions. Appropriate disciplinary measures should be taken against culprits of e-frauds so as deter others with such intentions. Also, banks should hold regular trainings for their Information Technology staff to counter the activities of fraudsters that use electronic means to commit fraud.

Design of a GSM-Based Skimming Reporting System for Automated Teller Machines

In recent years, there has been the unpleasant advent of a new type of credit card fraud called Automated Teller Machine (ATM) skimming. This type of fraud poses a substantial threat to the banking sector because its modus operandi is quite subtler than other known types of ATM fraud. It consists of a criminal implanting a disguised dummy card reader very similar to the ATM’s original card reader at the ATM. This is done to intercept the ATM card data of any unsuspecting customer who tries to withdraw cash. This paper seeks to design a system which will be able to detect and report such devices before they cause harm. The objective of this research was achieved by designing a skimmer incorporating the use of a metal detector for detecting new electronic components within the ATMs card slot region, an ultrasonic sensor for detecting unfamiliar skimmer overlays and the processing power of a microcontroller to coordinate theses sensors which monitor the status of the ATM terminal’s original card reader and send a Short Message Service (SMS) text message whenever the system detects that a skimmer has been attached to the ATM terminal. This concept of skimming detection was designed, tested and simulated under several operating conditions in Proteus 8.0 simulation software to prove the detection method’s efficacy. The simulation results showed that the proposed system provided a decent theoretical skimmer detection technique. However, other factors such as metal detector oscillator instability and the difficulty in accurately modelling the composition of ATM skimmers served as this design’s major drawbacks. Keywords : ATM, Skimming, GSM, Microcontroller

A Study on Multi Phase Security Solutions to ATM Banking System

The growth in electronic transactions and banking system has resulted in greater demand for fast access of banking transactions with the aid of Automated Teller Machine (ATM). The quick increment in the utilization of ATM transactions has been closely followed by the increase in ATM frauds. The security problem and fraudulent transactions are the biggest deterrents in the continuous or widespread use of ATM transactions. For the security of ATM just possession of password or prior knowledge of computer systems or ATM machines not altogether enough. In ATM, security is essential in different aspects including physical machines, transactions, user authentication and integrity and finally user security itself. Hence fraud prevention and security has become essential ingredients in order to increase the number of ATM users and to improve client trust and confidence over ATM’s. This paper explains about and examines the different types of security breaches in ATM banking systems. This paper also expounds improved security solutions to ATM’s in multiphase’s, which take into accounts all the aspects of security in all fields of ATM banking system, which is derived through focus group interaction. This paper could assume a functioning job in genuine research on ATM transaction framework security

ATM Card Cloning and Ethical Considerations.

With the advent of modern technology, the way society handles and performs monetary transactions has changed tremendously. The world is moving swiftly towards the digital arena. The use of Automated Teller Machine (ATM) cards (credit and debit) has led to a "cash-less society" and has fostered digital payments and purchases. In addition to this, the trust and reliance of the society upon these small pieces of plastic, having numbers engraved upon them, has increased immensely over the last two decades. In the past few years, the number of ATM fraud cases has increased exponentially. With the money of the people shifting towards the digital platform, ATM skimming has become a problem that has eventually led to a global outcry. The present review discusses the serious repercussions of ATM card cloning and the associated privacy, ethical and legal concerns. The preventive measures which need to be taken and adopted by the government authorities to mitigate the problem have also been discussed.

‘They withdrew all I was worth’

A major downside of the cashless policy introduced by the Central Bank of Nigeria in 2014 is pervasive automated teller machine (ATM) frauds. While fraudsters gain, the life chances of victims are affected. Previous studies in Nigeria had not investigated the effect of ATM frauds on victims’ life chances. Data were generated through in-depth interviews with victims of ATM fraud. Findings show victims suffered post fraud trauma and often depended on friends, parents and relatives to survive the trauma. The reaction of banks to customers’ victimization was unfavorable and unhelpful in compensating the financial losses of customers. We recommend better internal controls for banks and implementation of mechanisms to govern trust and protect customers from victimization.

Automated teller machine fraud in south-west Nigeria: Victim typologies, victimisation strategies and fraud prevention

Extant studies have not examined the unintended consequences of automated teller machine (ATM) subscription, particularly factors making individuals susceptible to fraud. To address this gap in the literature, this study investigated ATM fraud victims in south-west Nigeria. Using the in-depth interview method, data were collected from 20 victims of ATM fraud in the states of Lagos and Oyo. The results showed that victims were young, elderly and included both males and females. Fraudsters were typically lovers, friends, relatives and sometimes the children of the victims. Card cloning, card swapping and physical attacks at ATMs were reported tactics for defrauding. Vulnerability factors included illiteracy, ill health, routine activity and time of withdrawal. As means of mitigating fraud, it was found that banks employed an assortment of strategies including, but not limited to, improvements in staff welfare, stringent penalties for culpable staff and enhanced fraud awareness through customer alerts. The paper reveals the limits of trust in cashless policy. It raises salient policy issues concerning the need for the governance of trust to engender adoption and ensure victim compensation.

On the limits of trust

PurposeThis paper aims to investigate automated teller machine (ATM) fraud in southwest Nigeria, as extant studies have not examined the unintended consequences of ATM subscription particularly the effect of the identity of fraudsters and the strategies for defrauding.Design/methodology/approachUsing sequential exploratory strand of mixed method, data were collected from both ATM users and victims of ATM fraud using multi-stage sampling procedure. This involved purposive selection of Lagos and Oyo states.FindingsResults showed that fraudsters were typically lovers, friends, relatives and sometimes children of victims. Strategies for defrauding included card cloning, swapping of cards and physical attacks at ATM galleries.Research limitations/implicationsBecause of the size of the sample which is small, the research results may lack generalizability. More expansive works are needed across Nigeria in this regard.Practical implicationsThe paper includes implications for policy initiative concerning the deployment and use of payment systems such as ATM in Nigeria.Social implicationsThe paper reveals the limits of trust in cashless policy. It raises salient policy issues concerning the need for the governance of trust to engender adoption.Originality/valueThe paper characterizes fraudsters and their strategies for defrauding.

New Approach in Biometrics to Combat the Automated Teller Machine Frauds: Facial Recognition

There is an urgent need for improving security in banking region. In this paper discussion is made about the face recognition technology, an important field of biometrics which will be employed for the purpose of checks on frauds using ATMs. The recent progress in biometric identification techniques, has made a great efforts to rescue the unsafe situations at the ATM. Several facial recognition techniques are studied which include two approaches, appearance based and geometric based. A new facial recognition technique: 3-D technique is also reviewed in the paper. These techniques are widely used in e-passports and on the airports for entry of travellers and others. ATM systems today use no more than an access card and PIN for identity verification. If the proposed technology of facial recognition becomes widely used, faces would be protected as well as PINs.

An Integrated Service Model for Improved Automatic Teller Machine Operation in Nigeria Banking System

Nigeria economy until recently depended on cash transactions. By Central Bank of Nigeria (CBN) Act 2007, cashless banking through Automated Teller Machine (ATM) was officially introduced into some segments of Nigeria Banking sector to improve banking operation and bring about fiscal growth of the economy. The cashless programmes launched included ATM, Debit Card and Credit Card transactions. The popularity of transactions through ATM can be ascribed to convenience of use. However, at present in Nigeria, ATM is not satisfying the set objectives in the area of transaction reliability, compliance of process, and transaction response time thereby resulting to ATM fraud and security flaws; delay operations; and erroneous reporting and feedback. To a large extent, these problems can be attributed to defective policy framework and implementation. Therefore, this paper focuses on improving the operation of ATM using the combination of Service Component Architecture (SCA) and Case Based Reasoning (CBR) as a framework for Service Oriented Computing. It describes a new service oriented modeling approach where the SCA is used to facilitate the composition of service within ATM operation while the CBR is used to execute the service functions selected by users. These models are relevant to Commercial Bank and CBN layers of Service Model under the regulation of CBN based on customers’ preferences over customers’ requirements via the ATM and internet banking interface. The model serves as a framework that could guarantee better operation in ATM banking.

Effects of Automated Teller Machine on the Performance of Nigerian Banks

This study investigates the effects of ATM on the performance of Nigerian banks. Available studies have concentrated on the significant dimensions of ATM (automated teller machine) service quality and its effect on customer satisfaction with a bias against ATM producers. The study is motivated by the astronomical challenges confronting the proliferation of ATM infrastructure and attendant financial losss to banks which are often under-reported. Also, there are serious debate on the relevance of ATM technology as most countries in the world are moving away from the virus technology to the more secured chip cards free of credit and debit frauds. Questionnaire was used to collect the data from a convenience sample of 125 employees of five selected banks in Lagos State with interswitch network. Therefore, data collected through the questionnaire were analyzed statistically by using the Software Package for Social Science (SPSS Version 20.0 for Student Version) and chi-square technique. The results indicate that less than the benefits, the deployment of ATMs terminals have averagely improved the performance of Nigerian banks because of the alarming rate of ATM fraud. Similarly, ATM service quality is less correlated to security and privacy of users and providers.The conclusion therefore is that banks should strive to increase their security layers to subvert the tricks of web scammers, limit the amount which customers may be allowed to withdraw at a time and provide electronic alerts to customers’phone for all transactions carried out on their bank accounts through ATMs and the provisions of extra security layer that can prevent third party to make use someone else’s ATM card for unauthorized withdrawals electronically.

Analysis of the Negative Effects of the Automated Teller Machine (ATM) as a Channel for Delivering Banking Services in Nigeria

This paper titled, “Analysis of the negative effects of the automated teller machine (ATM) as a channel for delivering banking services electronically in Nigeria” proposed that the ATM system of delivering banking services not only contribute to the increasing rate of bank fraud but equally lures Nigerians into profligate expenditure. Using a sample of 600 respondents conveniently selected from two states of the federation (Lagos and Anambra), and analyzing the hypotheses formulated with chi-square, it was found that results were consistent with the propositions made. Against these backdrops, it was recommended that banks should; strive to increase their security layers to subvert the tricks of web scammers, limit the amount which customers may be allowed to withdraw at a time and provide electronic alerts to customers’ phone for all transactions carried out on their bank accounts through ATMs, cooperate instead of competing in stemming the ATM fraud menace and educate customers on the need to safeguard their PINs. Government was encouraged to; promulgate laws that will guide e-business including ATMs in Nigeria, provide employment, check the indiscriminate issuance of ATM cards by banks and so on. Customers were advised to; avoid replying unsolicited mails and text messages, not to compromise their PINs, maintain a separate account which is not placed under ATM if they are given to impulsive expenditure. Interested researchers were as well given a focus for further research.