ASSESSMENT OF THE ACTIVITIES OF FRAUDSTERS USING ATM AND ATM PIN IN JALINGO METROPOLIS OF TARABA STATE

ABSTRACT

The use of ATM has grown rapidly in popularity because of its low banks transaction costs and

customer’s convenience which has made it a basic element of today’s financial service delivery.

However, the ATM which is meant to be serving the customers better is now becoming a

nightmare for some customers because of fraud perpetuated in their accounts through ATM

withdrawals. The main purpose of this work is to examine the activities of fraudsters through

ATM pin and how these frauds have affected financial institution growth and customer’s

patronage of banks in Jalingo Metropolis. Over time, consumers have come to depend on and

trust the Automatic Teller Machine (ATM) to conveniently meet their banking needs. But in

recent time there have been a proliferation of ATM frauds in the country even and across the

globe. Managing the risk associated with ATM fraud as well as diminishing its impact is an

important issue that face financial institutions as fraud techniques have become more advanced

with increased occurrences. The ATM is only one of many Electronic Funds Transfer (EFT)

devices that are vulnerable to fraud attacks. This researcher made use of four banks as a case

study for this research work. Data was collected from questionnaires, interviews and

observation from the five banks under study. In conclusion, the activities of fraudsters need to be

monitored and measures should be put in place to mitigate these frauds. The research identifies

the common ATM fraud, how, where and when these frauds are perpetuated and then proffer

security recommendation that should be adhered to by both the banks as financial institutions

and the ATM users in order to eliminate or reduce it to the barest minimum. To solve this,

additional security layer on the ATM is recommended and proper monitoring of the ATM

machine by the banks. We believe that if banks and service providers heed to some of these

suggestions in this work, we will have a safer, hassle- free and worth while banking experience

in this country.

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