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US electronic funds transfer losses
Vol. 8, No. 11, Page 6
There are currently two versions of the Timeplex SDS on the market. The Model 2003 Dialback Unit is suitable for a wide range of operations requiring single dial-up line and port protection. For a larger-scale centralised security application, a rack-mounted system provides secure access for multiple connections to the network. For further information, contact: Timeplex Ltd, North Parkway, Leeds LS14 6PX, UK; tel: 0532-735141.
US ELECTRONIC FUNDS TRANSFER LOSSES
According to the US Department of Justice (Securite Informatique, July-August 1986), over the last five years US banks have reported 139 cases of loss arising from electronic funds transfer (EFT) transactions, each involving an average loss of $883 279. The maximum lost in one incident was $37 million. Six per cent of the cases were due to fraud, the remainder being the result of error. In 1980, 60 million EFT transactions took place, involving a total of $117 000 billion. The US Justice Department estimates that in 1985, 344 acts of violence were committed against ATMs or their (human) clients.
AUSTRALIAN ROUND-UP - CONSUMER EFT PROTECTION
Increased awareness of ATM and other EFT fraud possibilities is starting to create unease in Australia. Is there adequate protection for consumers and adequate definition of crimes and liabilities? In May 1985 the Australian Consumers Association presented a paper to the Federal Government's EFTS Working Group, which summarised cases reported to them. Samples from this report include: *
Debit made to an account when an ATM rejected a transaction
*
Payments made in excess of account balances or daily limits, particularly with stolen cards. These cases have occurred when the PIN was not known, and when the theft was reported prior to any withdrawal
*
Cards stolen prior to receipt
*
.Cards continuing to be used long after notification invalidity
*
Pay-by-phone frauds and mail order frauds where credit card numbers and names are quoted but the supplier has no opportunity to validate a signature. One youth extracted good to the value of $6000 by this means
*
Billing errors of mixed accounts, transposition, moving decimal points and so on.
of
Running through all the reports is concerned about the financial organisations' apparent ability to make an authorised or
0 1966 Elsevier Science Publishers B.V. (Information &Business Division), Amsterdam.l66/$0.00 + 2.20 No part of this publication may be reproduced. stored in a retrieval system, or transmitted by any form or by any means. electronic, mechanical. photocopying, recording or otherwise. without the prior permission of the publishers. (Readers in the U.S.A. ~ please see special regulations listed on back cover.)
There are currently two versions of the Timeplex SDS on the market. The Model 2003 Dialback Unit is suitable for a wide range of operations requiring single dial-up line and port protection. For a larger-scale centralised security application, a rack-mounted system provides secure access for multiple connections to the network. For further information, contact: Timeplex Ltd, North Parkway, Leeds LS14 6PX, UK; tel: 0532-735141.
US ELECTRONIC FUNDS TRANSFER LOSSES
According to the US Department of Justice (Securite Informatique, July-August 1986), over the last five years US banks have reported 139 cases of loss arising from electronic funds transfer (EFT) transactions, each involving an average loss of $883 279. The maximum lost in one incident was $37 million. Six per cent of the cases were due to fraud, the remainder being the result of error. In 1980, 60 million EFT transactions took place, involving a total of $117 000 billion. The US Justice Department estimates that in 1985, 344 acts of violence were committed against ATMs or their (human) clients.
AUSTRALIAN ROUND-UP - CONSUMER EFT PROTECTION
Increased awareness of ATM and other EFT fraud possibilities is starting to create unease in Australia. Is there adequate protection for consumers and adequate definition of crimes and liabilities? In May 1985 the Australian Consumers Association presented a paper to the Federal Government's EFTS Working Group, which summarised cases reported to them. Samples from this report include: *
Debit made to an account when an ATM rejected a transaction
*
Payments made in excess of account balances or daily limits, particularly with stolen cards. These cases have occurred when the PIN was not known, and when the theft was reported prior to any withdrawal
*
Cards stolen prior to receipt
*
.Cards continuing to be used long after notification invalidity
*
Pay-by-phone frauds and mail order frauds where credit card numbers and names are quoted but the supplier has no opportunity to validate a signature. One youth extracted good to the value of $6000 by this means
*
Billing errors of mixed accounts, transposition, moving decimal points and so on.
of
Running through all the reports is concerned about the financial organisations' apparent ability to make an authorised or
0 1966 Elsevier Science Publishers B.V. (Information &Business Division), Amsterdam.l66/$0.00 + 2.20 No part of this publication may be reproduced. stored in a retrieval system, or transmitted by any form or by any means. electronic, mechanical. photocopying, recording or otherwise. without the prior permission of the publishers. (Readers in the U.S.A. ~ please see special regulations listed on back cover.)