NCJ Number
57592
Date Published
1976
Length
12 pages
Annotation
SECURITY AND PRIVACY ISSUES POSED BY THE IMMINENCE OF ELECTRONIC FUNDS TRANSFER SYSTEMS (EFTS'S) ARE DISCUSSED IN TESTIMONY PRESENTED BEFORE THE NATIONAL COMMISSION OF ELECTRONIC FUND TRANSFERS IN 1976.
Abstract
THE EFTS'S UNDER DISCUSSION ARE THE FULLY DEVELOPED SYSTEMS IN WHICH MERCHANTS AND THEIR BANKS PLUS CUSTOMERS AND THEIR BANKS ARE LINKED ELECTRONICALLY TO COMPLETE TRANSACTIONS. THE MAIN SECURITY PROBLEM WITH SUCH SYSTEMS IS UNAUTHORIZED USE OF INFORMATION. TO DEAL WITH SECURITY PROBLEMS POSED BY FULL-SCALE EFTS'S, RESEARCHERS WILL HAVE TO REEVALUATE THE THREAT TO AUTOMATED DATA SYSTEMS AND RESTRUCTURE SAFEGUARDS (MOST IMPORTANTLY AUDIT PROCEDURES). THE MAIN PRIVACY CONCERNS WITH EFTS'S ARE THAT DECISIONS ABOUT INDIVIDUALS BASED ON EFTS DATA MUST BE FAIR, AND THAT THE DATA MUST BE USED FOR THEIR INTENDED PURPOSES. AN EFTS IS UNIQUE IN THAT IT CONTAINS A GREAT DEAL OF INFORMATION ABOUT AN INDIVIDUAL'S DAILY AFFAIRS -- PATTERNS OF MOVEMENT AND PURCHASES, HABITS OF EXPENDITURES, TRAVEL HABITS, PREFERRED PRODUCTS, MERCHANTS, AND CHARITABLE CAUSES, ETC. THE OBVIOUS QUESTION IS WHETHER THIS INFORMATION WILL BE HELD IN CONFIDENCE OR MADE AVAILABLE FOR PERUSAL BY GOVERNMENT AGENCIES, OR BE USED IN PRODUCT SOLICITATIONS, DEBT COLLECTION, OR POLITICAL HARASSMENT. EFTS'S WILL CAPTURE MORE INFORMATION THAN ANY PREVIOUS AUTOMATED SYSTEMS HAVE CAPTURED AND WILL CREATE AN INFORMATION BASE THAT IS BOUND TO BE OF CONSIDERABLE INTEREST TO MANY ORGANIZATIONS. IT WILL BECOME VERY EASY TO SELECT ONE RECORD FROM AMONG MILLIONS. INSTITUTIONS WILL HAVE TO PROVIDE SAFEGUARDS AGAINST A VARIETY OF ABUSES, BUT NO MATTER HOW GOOD THE SAFEGUARDS ARE, THEY WILL NOT BE PERFECT. THE QUESTION ARISES AS TO WHETHER SOCIETY IS WILLING TO ACCEPT THE RISKS INHERENT IN CREATING IMPERFECTLY PROTECTED SOURCES OF COMPREHENSIVE INFORMATION ABOUT INDIVIDUALS. (LKM)