Case 1 (Q’s and Ans)

1.As a member of the bank’s executive committee, what security measures do you recommend to deal
with the unauthorized use of ATM cards?

Since the bank can do nothing about stolen or lost ATM cards until it is notified, it must take
action to prevent the primary reason for lost cards—customers leaving them in the machines
after making a transaction. Most lost cards have been left at the ATMs by customers. The ATMs may
be redesigned or altered to draw the user’s attention to the fact that a card remains in the machine.
Currently, the machines drop the card into a return slot after the transaction is completed. Perhaps the
machines could demand that the user retrieve the card before a transaction is completed, making the
removal of the card essential and a required step in the user’s procedure. Clear instructions could be
issued and available at the ATM locations spelling out this new step. A warning buzzer or bell (such as
those in automobiles that warn the driver that the lights have been left on or that the key is in the
ignition) could draw a user’s attention to the fact that the card awaits retrieval.

2.What kinds of controls would you recommend to deal with vandalism problems?

The bank currently relies upon visual observations by bank personnel, or police, or members of
the public to prevent vandalism. None of the three ATMs have surveillance equipment or alarm
devices. These may have to be installed, especially at theone location that has 75 percent of the
problems—the train station ATM. The bank needs to know the times when vandalism most frequently
occurs. It could then ask the police to increase their surveillance efforts during those times to aid
in the apprehension of vandals. It may be possible to use a stronger material in the booths and
surrounding lights to make it more difficult to break the see-through portions of the booth and
to damage its lighting fixtures. Alarms, surveillance equipment, increased patrols, and less
vulnerable booths are examples of prevention and feedforward types of controls.Access to the
money inside the machine must be made more difficult. It might be possible to encase the
machine with stronger, more break-in resistant material. An alarm hookup with the police
department should be studied. Such a feedforward device could alert police that a break-in was in
progress. Some ATMs have a video camera present to tape-record every user’s face. This type of
surveillance device serves double duty—it helps prevent trouble and records the troublemakers in the
act.

3.What kind of controls would you recommend to deal with the problems of robbery and muggings at
the ATM machines?

Losses by customers through robbery and muggings occur inseveral ways. Users of ATMs have been
held up and forced to use their ATM cards to withdraw money for the thief. Others have been
held up after using the ATMs, out of sight of the surveillance provided. Still others have been
robbed, thus losing their wallets, ATM cards, and their six-number codes that they foolishly left written
down in their wallets. The efforts listed above may help to prevent robberies and muggings at or
near the ATMs. Increased police surveillance and video cameras recording the station’s activities
cannot do it all. Users must be cautioned that using these machines at odd hours and in darkness can
be risky. The design and positioning of the ATMs must provide easy access by car with a
parking spot for users set aside immediately in front of or next to the machine. Users can get
in and out quickly with minimum exposure to robbers. In addition, ATMs should stand alone,

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 well away from other structures or plants that can offer cover for a thief waiting for a victim.
Separate, detached lighting for the areas surrounding the ATMs make the robber wary and the area less
inviting. The best controls rest with the ATM user. He or she should use such facilities in daylight,
with another person, or when crowds of friendly people are near, and with good, common sense.

The Glen Aire Bank and Trust experienced casualties from their ATMs caused by incidents such
as damaged and unfunctional ATM machines, misplaced ATM cards, and casualty by the
customers through thefts or street crime.

Banks must take precautions to avoid the primary cause for misplaced cards after making a transaction,
leaving them in the machines. In terms of controls, the bank must understand and know about the
instances that crime happens most often. It might then ask the police to enhance their security efforts to
assist in the identification of thieves at those periods. The bank should also use stronger materials such
as detectors, monitoring systems (CCTV cameras), increased surveillance, and less prone booths. The
structure and location of the ATMs must provide users with convenient access by car with a parking spot
reserved immediately in front of the ATM machine or next to it, this may cause minimal exposure to
criminals wherein users can get in and out fast.

With the help of management lessons discussed during class, we have learned that as managers, before
we act to the problem, we must have concrete plans. We noticed that the case has a lot of control
problems. In our perspective

Our duties as managers...

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