Establishing a Secured ATM Banking System
Statement of the Problem
Limitation of the Project
Analysis of the Project
Scope of the Statement
The aim of this study is to investigate risk management, security and controls in the Context of Automated teller machines (ATMs). In doing so, it adopts a non-technical Approach by investigating the interrelationship and effect of risk management and controls In setting Automated Teller Machine security goals. The literature explores and discusses The risk management and different controls of ATMs. To reduce the risk of fraudulent Activity, several controls can be integrated into the ATM processing environment. However, the controls should not be considered a cure-all.
Keywords: ATMs, data security, risk, fraud, electronic banking, and controls.
This paper examines the effects of incompatibility in network industries. In a network industry such as telecommunications, the internet, or automatic teller machines (ATMs) in the banking industry,firms are technologically interconnected. This interconnection can lead to more complicated pricing structures than those observed in traditional industries, since a consumer may receive direct or indirect services both from his chosen firm and its rivals. While interconnection increases the size of the network available to consumers, in industries such as the banking industry, the introduction of price discrimination between affiliated and unaffiliated consumers reintroduces firm-level network economies by reducing compatibility within the shared network. This paper measures the impact of this incompatibility and finds significant effects on competition in the deposit market, welfare, and investment. It also briefly considers an alternative institutional structure in which provision of ATM and deposit services is separated. In the banking industry, the customers of one bank can use their ATM cards at ATMs owned byother banks, but the ATM owner may charge a fee called a surcharge.This can be interpreted aspartial incompatibility between components of a system comprised of ATM cards (bank affiliation)and ATMs. Analogous to the strong complementary relationships between CPUs and peripheralsor VCRs and video tapes, ATM cards and ATMs form complementary components of a system thatallows consumers to perform transactions on their bank accounts. Consumers can choose variouscombinations of these complementary goods, but the compatibility is only partial since there is acost associated with use of a foreign ATM, that is, an ATM not owned by the consumer’s bank. There is a sizeable theoretical literature on compatibility in industries with network externalitiesor complementary components.This literature predicts that incentives for compatibility differacross firms and will be smaller for firms with larger networks, since these firms lose the competitive advantage their network size confers under incompatibility.The effects on consumer surplus should differ depending on the distribution of consumer characteristics and the new price equilibrium that is reached. In turn, the effects of compatibility on price competition depend on a number of factors. In the banking industry, while partial incompatibility achieved through surcharging should theoretically soften price competition in the deposit market by making an increase in deposit. This paper will focus on the types of ATM transactions that can be performed on any ATM within the shared network such as inquiries and cash withdrawals.
An automated teller machine (also known as an ATM or Cash Machine), is a computerized device that provides...
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