In: Finance
ATM is one of the digital technologies in the field of banking and finance which had revolutionized the banking industry by providing access to convenient banking services 24*7 though their interconnected network of ATMs all over the world . ATM internetwork operability have improved allowing the customer to have the facility of banking servies like cash withdrawals and other relevant servies at any of the internetwork atms worldwide.
However the following reasons have left the ATM with the possibility of digital fraud .
Problems were
1 |
· Being a self operated machine , it doesn’t need and face to face interaction with any bank official and unscrupulous persons use this as an advantage to steal both financial and nonfinancial data from the banking system |
2 |
· Lack of digital literacy and awareness among the customers were also driving these frauds higher to higher level so consumer education is a challenge for the banking institutions too. |
3 |
· The USE of magstripe cards in earlier days were exposing the vulnerable data of the customers card details which were scammed by the hackers using card cloning devices |
4 |
Card Swapping , and jamming were the more sophisticate techniques used by these fraudster to jam or swap customers card with a fake one In steal cash from it |
Actions in encountering these fraudulent activities
Financial institutions and ATM networks like NCR solutions have now developed anti fraud technologies in their atm network to prevent all these frauds Several steps including
· Installing surveillance system in ATMS
· Replacing the Magstripe card to Chip based cards have been done
· Fraud intelligence bureau have been set up to study and investigate all these frauds .
· Banks and FIs have been ordered to make good for the loss to the customers
· Making cutomers aware of the digital frauds
· Installing of anti card skimming solutions in the ATMS
· Moving the ATMs to more secure areas
· Changes and amendments in the Anti Money laundering regulations have also been done to prevent all such ATM frauds
All the actions have improved the customer confidence and enhanced the security allowing more number of customers to transact online and improve the global financial digital ecosystem