DANGER OF ATM & MOBILE BANKING

ATM and mobile banking is one of the easiest and fastest of collecting and transferring money to any part of the world; the benefits are enormous compared to the crude way of queuing for several hours in Banks premises. In this article we shall take time to talk on them one after the other.

Definition

An automated teller machine or automatic teller machine (ATM), also known as an automated banking
machine (ABM) in Canada, and a Cash point (which is a trademark of Lloyds TSB), cash machine or sometimes a hole in the wall in British English, is a computerized telecommunications device that provides the clients of a financial institution with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller. ATMs are known by various other names including ATM machine, automated banking machine, and various regional variants derived from trademarks on ATM systems held by particular banks. On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip that contains a unique card number and some security information such as an expiration date or CVVC (CVV). Authentication is provided by the customer entering a personal identification number (PIN). Using an ATM, customers can access their bank accounts in order to make cash withdrawals, debit card cash advances, and check their account balances as well as purchase prepaid cell phone credit. If the currency being withdrawn from the ATM is different from that which the bank account is denominated in (e.g.: Withdrawing Nigeria Naira from a bank account containing US Dollars), the money will be converted at an official wholesale exchange rate. Thus, ATMs often provide one of the best possible official exchange rates for foreign travelers, and are also widely used for this purpose.

http://en.m.wikipedia.org/wiki/Automated_teller_machine#

HISTORY OF ATM

The idea of self-service in retail banking developed through independent and simultaneous efforts in Japan, Sweden, the United Kingdom and the United States. In the USA, Turkish- born Luther George Simjian has been credited with developing and building the first automatic teller machine (which didn't dispense cash).

There is strong evidence to suggest that Simjian worked on this device before 1939 while his 132nd patent (US3079603) was first filed on 30 June 1960 (and granted 26 February 1963). The rollout of this machine, called Bankograph, was delayed a couple of years. This was due in part to Simjian's Reflectone Electronics Inc. being acquired by Universal Match Corporation.

An experimental Bankograph was installed in New York City in 1939 by the City Bank of New York, but removed after 6 months due to the lack of customer acceptance. The Bankograph was an automated envelope deposit machine (accepting coins, cash and cheques) and it did not have cash dispensing features.

The first ATM was put into use in 1959 in the Kingsdale Shopping Center in Upper Arlington, Ohio. This suburb of Columbus, Ohio created a shopping center where the Galbraith Farm used to be located that also featured the world's first The Limited Store. In simultaneous and independent efforts, engineers in Japan, Sweden, and Britain developed their own cash machines during the early 1960s. The first of these that was put into use was by Barclays Bank in Enfield Town in North London, United Kingdom, on 27 June 1967. This machine was the first in the UK and was used by English comedy actor Reg Varney, at the time so as to ensure maximum publicity for the machines that were to become main stream in the UK. This instance of the invention has been credited to John Shepherd-Barron of printing firm De La Rue, who was awarded an OBE in the 2005 New Year Honours. His design used paper cheques issued by a teller, marked with carbon-14 for machine readability and security that were matched with a personal identification number

http://en.m.wikipedia.org/wiki/Automated_teller_machine#

Today more than 103 countries over the world is using this ATM machine, that is to say it is almost generally accepted by all.

DANGER OF ATM BANKING

Rules are usually set by the government or ATM operating body that dictate what happens when integrity systems fail. Depending on the jurisdiction, a bank may or may not be liable when an attempt is made to dispense a customer's money from an ATM and the money either gets outside of the ATM's vault, or was exposed in a non-secure fashion, or they are unable to determine the state of the money after a failed transaction.

Customers often commented that it is difficult to recover money lost in this way, but this is often complicated by the policies regarding suspicious activities typical of the criminal element searching of data.

Improper money checking can cause the possibility of a customer receiving counterfeit banknotes from an ATM. While bank personnel are generally trained better at spotting and removing counterfeit cash, the resulting ATM money supplies used by banks provide no guarantee for proper banknotes, as the Federal Criminal Police Office of Germany has confirmed that there are regularly incidents of false banknotes having been dispensed through bank ATMs.

Some ATMs may be stocked and wholly owned by outside companies, which can further complicate this problem. Bill validation technology can be used by ATM providers to help ensure the authenticity of the cash before it is stocked in an ATM; ATMs that have cash recycling capabilities include this capability.

Fraud As with any device containing objects of value, ATMs and the systems they depend on to function are the targets of fraud. Fraud against ATMs and people's attempts to use them takes several forms. The first known instance of a fake ATM was installed at a shopping mall in Manchester, Connecticut in 1993. By modifying the inner workings of a Fujitsu model 7020 ATM, criminal gangs known as The Bucklands Boys were able to steal information from cards inserted into the machine by customers. WAVY-TV reported an incident in Virginia Beach of September 2006 where a hacker who had probably obtained a factory-default admin password for a gas station's white label ATM caused the unit to assume it was loaded with $5 USD bills instead of $20s, enabling himself—and many subsequent customers—to walk away with four times the money they wanted to withdraw. This type of scam was featured on the TV series The Real Hustle.

ATM behavior can change during what is called "stand- in" time, where the bank's cash dispensing network is unable to access databases that contain account information (possibly for database maintenance). In order to give customers access to cash, customers may be allowed to withdraw cash up to a certain amount that may be less than their usual daily withdrawal limit, but may still exceed the amount of available money in their accounts, which could result in fraud if the customers intentionally withdraw more money than what they had in their accounts.

I was on one occasion affected in this regard; I went to my bank to cash money but there was no money in the ATM machine and I decided to visit other bank other than my bank. As at the time I request for the my money, the ATM could not pay me, I did it the second time, it refused to dispensed money for me but a slip was printed showing my account balance and the amount I withdrew which I didn’t received; in few second I received SMS telling me that my account have been debited; this I could not bear and straight I went to the bank, made my complain but the staffs were not willing to listen to me until I made some noise with threat before they could attend to me but the processes I went through before the money was latter credited into my account after two days was not a good experience.      

Card fraud

 Some ATMs may put up warning messages to customers not to use them when it detects possible tampering A Restaurant advertising its ATM availability Information technology portal Business and Economics portal Numismatics portal V · T · E V · T · E V · T · E Automated teller machine "Cash machine" redirects here. The examples and perspective in this article deal primarily with United Kingdom and do not represent a worldwide view of the subject.

In February 2009, a group of criminals used counterfeit ATM cards to steal $9 million from 130 ATMs in 49 cities around the world all within a time period of 30 minutes. This also affected me and that time I lost N80,000.00 from my account. I went to the bank to withdrew N40,000.00 after withdrawing this said amount, I received SMS telling me that I have been debited the some N120,000.00. this blew my head and immediately I went to the bank and make my problems known to them, they did check through my account and they found that, while I was withdrawing someone was also withdrawing from my account, them I asked who was it? And I was told these are the hackers but how did they have access to my account? They could not explain. But what do I do now? I tell you up till now, I couldn’t get it back. One may say that was when we can perform several operations at time but we do not but perform operation at a time. Let me tell you the real truth, if use your ATM in your bank it will prompt to input your code after one operation but if it other bank other that your bank it will not prompt you. So be wise and only use your ATM in your bank if you want your money to be safe.

http://en.m.wikipedia.org/wiki/Automated_teller_machine#

SECURITY ON COSTUMER

In some countries, multiple security cameras and security guards are a common feature. In the United States, The New York State Comptroller's Office has advised the New York State Department of Banking to have a more thoroughly safety inspections of ATMs in high crime areas.

MOBILE BANKING

Mobile banking (also known as M-Banking, mbanking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA). The earliest mobile banking services were offered over SMS, a service known as SMS banking. With the introduction of the first primitive smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers. Mobile banking has until recently (2010) most often been performed via SMS or the Mobile Web. Apple's initial success with iPhone and the rapid growth of phones based on Google's Android (operating system) have led to increasing use of special client programs, called apps, downloaded to the mobile device. A mobile banking conceptual model In one academic model, mobile banking is defined as: Mobile Banking refers to provision and availment of banking- and financial services with the help of mobile telecommunication devices. The scope of offered services may include facilities to conduct bank and stock market transactions, to administer accounts and to access customized information." According to this model, Mobile Banking can be said to consist of three inter- related concepts: Mobile Accounting Mobile Brokerage Mobile Financial Information Services Most services in the categories designated Accounting and Brokerage are transaction-based. The non-transaction-based services of an informational nature are however essential for conducting transactions - for instance, balance inquiries might be needed before committing a money remittance. The accounting and brokerage services are therefore offered invariably in combination with information services. Information services, on the other hand, may be offered as an independent module. Mobile phone banking may also be used to help in business situations as well as financial

http://en.m.wikipedia.org/wiki/Mobile_banking#_

USES OF MOBILE BANKING

You are about to board a plane when you suddenly realize that you have a measly $5 in your account for your trip. That's when you pull out your smartphone and, in a matter of seconds, magically deposit the needed cash into your checking account. From big national chains to smaller regional outposts, banks have improved the functionality of mobile banking so that consumers can transfer funds, pay bills or check balances whenever and wherever they may be. However, before making mobile banking part of their routine, consumers should know that this convenience comes with one hiccup

Http://investopedia.com/financial-edge/0111/Top-Mobile-Banking-Dangers-And-How-To-Avoid-Them.aspx#axzz1toMJRqCt

Mobile banking can offer services such as the following:

Account information

1. Mini-statements and checking of account history

2. Alerts on account activity or passing of set thresholds

3. Monitoring of term deposits

4. Access to loan statements

5. Access to card statements

6. Mutual funds / equity statements

7. Insurance policy management

8. Pension plan management

9. Status on cheque, stop payment on cheque

10. Ordering cheque books

11. Balance checking in the account

12. Recent transactions

13. Due date of payment (functionality for stop, change and deleting of payments)

14. PIN provision, Change of PIN and reminder over the Internet

15. Blocking of lost, stolen device.

Cards Payments, deposits, withdrawals, and transfers

1. Domestic and international fund transfers

2. Micro-payment handling

3. Mobile recharging

4. Commercial payment processing

5. Bill payment processing

6. Peer to Peer payments

7. Withdrawal at banking agent

8. Deposit at banking agent

Investments

1. Portfolio management services

2. Real-time stock quotes

3. Personalized alerts and notifications on security prices

Support

1. Status of requests for credit, including mortgage approval, and insurance coverage

2. Check (cheque) book and card requests

3. Exchange of data messages and email, including complaint submission and tracking

4. ATM Location

Content services

1. General information such as weather updates, news

2. Loyalty-related offers

3. Location-based services

DANGER OF MOBILE BANKING

 The following aspects need to be addressed to offer a secure infrastructure for financial transaction over wireless network if not these are the dangers of mobile banking:

1. Physical part of the hand-held device. If the bank is offering smart- card based security, the physical security of the device is more important.

2. Security of any thick- client application running on the device. In case the device is stolen, the hacker should require at least an ID/Password to access the application.

3. Authentication of the device with service provider before initiating a transaction. This would ensure that unauthorized devices are not connected to perform financial transactions.

4. User ID / Password authentication of bank’s customer.

5. Encryption of the data being transmitted over the air.

6. Encryption of the data that will be stored in device for later / off-line analysis by the customer

http://en.m.wikipedia.org/wiki/Mobile_banking#_

 Wasters Interceptions

Text messages are not encrypted (a method of securing data in transit), which means using a text message to receive updates or communicate with your bank is more susceptible to interception. And experts say that in the event a phone is stolen, sophisticated hackers could retrieve text messages, even if you have deleted individual messages. A good way around this threat is to refrain from corresponding via text when the information being transmitted could be potentially detrimental to your financial security if it falls into the wrong hands.

Unauthorized Access

Because mobile platforms aren't equipped with the same security layers as websites or ATMs, they are more vulnerable to fraudsters, who repeatedly change their identities and gain access through a series of quick attempts. Fortunately, users can take extra steps to increase their protection, such as adding additional passwords and encryption barriers that aren't provided by your bank. For example, you should set up the password-protect option on your phone and when it's not in use, lock it. Where available, another idea is to install security software on your mobile phone.

Password Theft

Once someone has discovered your banking password and hacked into your account, there isn't much you can do. But in advance, you can protect yourself from this debacle by installing remote-wipe options, a way to erase the information on your phone without physically having it in your possession. You can activate this if our phone goes missing. Select banks offer remote- wiping as a free, downloadable application. Similarly, the MobileMe service allows Blackberry and iPhones users to buy this feature.

Fraudulent Apps

While applications, or "apps", are what allow you to check your account balance or move money to another account from your cell phone, they also are an added risk for your mobile security. Some have called fraudulent apps the next generation of phishing scams; if you download a fraudulent application, it could be used to lift account and other sensitive information from your mobile device. For example, last January, Google removed 50 applications available for the Android phone due to concerns they may be virulent. To protect your mobile security from an application scheme, don't click on pop-ups that advertise apps. You can also check with your bank about the validity of any financial app you are considering, or if possible, download the application directly from your financial institution's website.

Dropped Calls

Mobile phones are small, compact and portable, but the downside is that they are easily lost or stolen. A criminal who hacks into your cell phone can retrieve personal information, account passwords and proprietary texts. In the event that your phone is stolen, you should also call your bank; this way, the bank can closely monitor your account. One Last Tip Remember, the best defense is to be your own activist; always keep track of your bank account and watch for atypical or suspicious activity. Setting up automatic electronic alerts from your bank may also help you stay on top of monitoring your fiscal situation.

Http://www.investopedia.com/financial-edge/0111/Top-Mobile-Banking-Dangers-And-How-To-Avoid-Them.aspx#axzz1toMJRqCt

General note to all.

There are several applications and devices in the world today used to track signal, security password and other secrete information which we cannot deny and all are gel toward frauding the masses. We know that any information through the air can be track, minimal the use of Mobile banking or don’t just involve yourself. A company whose business is solely hacking has just been discovered in US who before this time has made billions to trillions of Dollar from hacking.

Have you ever thought to heart that, there is no secrete in the world of GSM? All what you have used you mobile phone to do since you bought it are store in your account? That is where some time politicians go to collect your phone numbers and send you messages for you to vote for them and other person still go there to but your phone numbers and from which you received strange numbers calling you by name, address and other information related to you and you begin to wonder how did this person got my information. I say again, there is no secrete in the world of GSM even if there is law guiding your information, the staffs can still leak it out, so my fellow bothers an sister, there is no secrete in the world of GSM be WISE.