Wallace Struthers. the president of Glen Aire Bank and Trust. is disouming with the members of his executive oommittee the statistics from his comptroller's report on the problems with the bank's automated teller machines. "The figures are getting worse. According to a study by the American Banker Association. about 1s.ooo crimes were committed at or with automated teller madiines nationwide. Our bank's experience with losses from our ATMs parallels losses nationwide. About 90 percent of our losses me from people using stolen or lost ATM cards. about 5 percent from vandalism and break-ins to the ATMs. and the remaining 5 percent From robberies and muggings of customers at our remote ATM locations. Last year, the bani: lost $12.95*! because ofthese ATM-relatedcrimes. This year. the comptroller estimates that our losses will exceed 515.000. Ladies and genbemen. we have to tighten our controls." The banlr's three automated teller machines are located as follows: Cine is at the bank. next to the drivethrough lanes: the second is at the train station about fifty feet from the passenger depot in a telephone-booth-lllte structure; the third is outside the local supermarket in a sinilar structure All three machines are sheltered from the wind and raIn and are well lighted except for the occasional vandalism that breaks glass and destroys the lighting fixtures. All three have entrances that lace a street and use folding doors. The booth at the train station has been the source of nearly 75 percent oi the bank's losses to theft. vandalism. and fraud. The bank has only had automated teller machines for two years and has not Installed any type of surveillance equipment. It has relied on visual observation by bani: personnel during banking hours for the machine at the bank and on public locations with high visibility from the street at the other locations. Obviously. this has not been adequate. Local police drive by all the machine locations at least once every hour. The ATMs do not have any alarm devices. The problem with the stolen or lost cards Is a tough one to deal with. Customers are issued a card when they sign up for the ATM service. Each cardholder has a six-number code that must be entered before the machines will accept the card. Once the numbers are entered. the card is inserted In a slot and transaction buttons are pressed to withdraw cash from the cardholder's bank account. when the transaction Is completed. the card is returned to a drop slot. Most cards that are lost have been left at the machine by customers. Obviously. the bank cannot do anything about stolen or lost cards until the customer notifies the bank. Then the bank programs Its computer to reject any transaction using that card and Its cardholder code. So far. more than :50 cards have been reported lost or stolen by customers. QUESTIONS 1. As a member of the bani-cs executhre committee. what security measures do you recommend to deal with the unauthorized use ofATM cards? 2. what kinds of controls would you recommend to deal with vandalism problems? 3. what liind of controls would you recommend to deal with the problems of robbery and muggings at the ATM machines