ATM FRAUD IN NIGERIA AND ITS EFFECTS

            Automated Teller Machine ATM is an electronic cash dispensing machine which came to reduce the stress and trouble customers often encounter while trying to withdraw cash from their respective banks or even to check their accounts balance. This machine has grown beyond the traditional role mentioned above. Through ATM card, one can now pay for items purchase, even on-line.

            ATM fraud is perpetrated through the ATM machine and e-transaction system. The current rise in ATM fraud has made the public to lose confidence in this technology that is meant

to provide convenience and comfort while making cash withdrawal or while shopping. It also helps to reduce the risk of carrying cash around. It comes in different format and methods. At times, a hidden camera is installed in an ATM Machine with the hope of stealing the personal data of the users. In some cases, the criminal sets ups up their own ATMs machines hoping to steal the personal data of users and later use same to commit crime. At times the criminals steal the PIN of the users and also with their cards and use them to withdraw all the money in their accounts.

            Millions of dollars are lost annually by consumers who have credit card and calling card numbers stolen from on-line databases. Security measures are improving and traditional methods of law enforcement seem to be sufficient for prosecuting the theft of such information in the USA, UK, France, Italy, Russua, China, Japan, Germany and other countries, but lacks effective enforcement in Nigeria, Ghana, Egypt and other African countries. Bulletin boards and other online services are frequent target fro hackers who want to access large databases of credit and debit cards information.

            Cases of ATM frauds have made some banks and their customers lose millions of Naira yearly in Nigeria. The CBN and various banks are always coming up with new policies and technology to beat the intelligence of these online thieves.

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