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Detecting Payment Card Fraud with Neural Networks - Article Example

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Summary

The author of the paper "Detecting Payment Card Fraud with Neural Networks" argues in a well-organized manner that the skimming exercise is normally done through the ATM (Automated teller Machine). The criminal installs an electronic device over the card slot of the ATM…

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Detecting Payment Card Fraud with Neural Networks

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Subject: Finance & Accounting
Type: Article
Level: Undergraduate
Pages: 1 (250 words)
Downloads: 4
Author: pquitzon

Extract of sample "Detecting Payment Card Fraud with Neural Networks"

The Automated teller Machine is used for reading the magnetic strip of the ATM card; when the user passes the ATM card through the slot, unknowingly. These devices are usually used together with a miniature camera; that is attached to the ATM and is used for reading the pin of the user.

Another ATM skimming technique entails the criminals using a keypad overlay, which is similar to the legitimate ATM keypad, below it. When the customer operates the ATM machine, the fake keypad overlay is pressed, and the fake keypad records and wirelessly transmits key log details of the entered PIN. The device or devices illegally installed on the ATM are also referred to as skimmers (Hassibi, 2010).

Recently installed ATMs have a picture of the genuine slot and keypad. This will effectively enable the consumers to detect attached foreign devices. Consumers should report the detection of foreign devices attached to ATMs to law enforcement officers or financial services providers. Financial regulators must strive to minimize ATM skimming, so as to minimize financial losses and legal suits by affected consumers. This can be done by applying sophisticated algorithms to study the patterns of fraud. Financial services providers must also ensure the physical and technological security of their ATM terminals.

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