Banks

Banks

Electronic Funds Transfer (EFT)

When money is moved electronically through computer systems it is described as EFT. This includes the usage of Automated Teller Machines (ATMs), paying with a credit card or debit card, and direct debit systems.

Online banking allows customers to see the status of their bank accounts and perform transactions such as money transfers. Payment of bills such as electricity and gas bills is now available through some banks.

Electronic Fraud

Credit card details can be stolen by employees or skimmed at legitimate ATMs in addition to a credit card being physically stolen.

Reducing offline fraud: Chip and pin systems force the customer to enter a PIN at the Point of Sale terminal. Previously it was customer's signature which could be easily forged and was rarely checked. It is also harder to clone a microchip than a magnetic stripe so it reduces incidents of card cloning.

Reducing online fraud: Data mining and artificial techniques look for suspicious transactions i.e. purchases at unusual times or places. Card can be blocked or the customer called to verify purchase. Sometimes the customer is redirected to the bank's website and forced to enter their online banking password (HSBC).

(James)