DESIGN AND DEVELOPMENT OF AN EMPIRICAL METHOD FOR AUTOMATED TELLER MACHINE TECHNICAL CHALLENGES AVOIDANCE

A CASE STUDY OF SELECTED BANKS IN OSHOGBO, OSUN STATE, NIGERIA METROPOLIS

Abstract

Customers have grown to rely on and trust the Automatic Teller Machine (ATM) to fulfill their banking requirements in a suitable manner throughout time. However, the number of ATM scams in the nation and around the world has increased dramatically in recent years. Financial institutions face a significant challenge in managing the risk of ATM fraud and reducing its impact, as fraud techniques have intensified and their frequency has increased. Fraud attacks can target a variety of Electronic Funds Transfer (EFT) devices, including the ATM. An empirical study was conducted in this work to examine ATM usage and fraud incidents in a few Oshogbo banks. Some of the objectives of this research work were ( i) identification of various risk and fraud associated with ATM (ii) knowing consumer's perception of ATM frauds and ways in which the fraudsters  takes the victim's card, harvest the pin ,other vital details and use the card (iii) to determine where the ATM fraud often occur (iv) to ascertain the level of security measure implemented with respect to each ATM use. Common ATM frauds were also identified in the study, along with their how, where, and when. The more ATMs are used, the more vulnerable they are to security threats. As ATM technology develops, fraudsters are always changing their strategies to discover new ways to get beyond security safeguards. Force withdrawal, ATM card theft, pin theft, card reader tactics, PIN pad strategies, and many other methods are used to perpetuate fraud. Banks should periodically update their security protocols since thieves are always evolving their methods. To lower the danger of PIN theft and other types of ATM fraud, banks should also think about introducing alternate authentication techniques, like better and more complex one-time passwords or mobile authentication.