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Criterion A
Describe one social/ethical concern related to the IT system.
The privacy of the user's personal details is at stake. If ATM systems are misused using this 'skimming' technology, then the privacy of user credit card numbers and pins can be acquired, which can cause severe financial problems to the stakeholders: the hospital patients.
Describe the relationship of one primary stakeholder to the IT system.
The main stakeholder, the patients, are related closely to this IT system. Many decide to pay for their medical bills using cash, because many health organizations take some extra charge if a card is used. Therefore, since many patients do not carry enough cash with them, they may use the ATM machines at the hospitals. If they use an ATM machine which is 'skimmed' then they will lose their credit card information which is highly dangerous.
Criterion B
The main stakeholder, the patients, are related closely to this IT system. Many decide to pay for their medical bills using cash, because many health organizations take some extra charge if a card is used. Therefore, since many patients do not carry enough cash with them, they may use the ATM machines at the hospitals. If they use an ATM machine which is 'skimmed' then they will lose their credit card information which is highly dangerous.
Criterion B
Describe, step by step, how the IT system works.
An ATM machine works in a simple way. It is connected via a network to the bank's database computer. When the user enters their card, a card reader captures account information stored on the magnetic strip on the card. The processor then sends this information over the WAN network to the bank's database. The processor at the bank then matches the user's data to the database. If a match is found, then data is sent back over the WAN network, enabling the user to proceed. Using the keypad, the user is able to input what type of transaction they want to perform. Based on the input, the processor will send data to the bank, the processor there then calculates the transaction and makes the necessary changes. When that is done, data is sent back to the ATM machine. Then the processor sends instructions to the output devices (the printer and the cash dispenser) to print money/receipt.
A skimmer essentially has a device which reads the magnetic information from the back of the card and creates a digital copy of that. It then stores it within a memory slot. It does not change the functionality of the ATM machine, it simply copies card information, so data is still send to the bank and so on. The other part of a skimming machine is the use of a camera, hidden such that it can capture the user entering their pin number. The camera is constantly on, and so it captures everything the user does, storing the captured footage on a memory card. This way, the scammers are able to create a bogus card using the data captured from the skimmer in order to steal money.
Criterion C
An ATM machine works in a simple way. It is connected via a network to the bank's database computer. When the user enters their card, a card reader captures account information stored on the magnetic strip on the card. The processor then sends this information over the WAN network to the bank's database. The processor at the bank then matches the user's data to the database. If a match is found, then data is sent back over the WAN network, enabling the user to proceed. Using the keypad, the user is able to input what type of transaction they want to perform. Based on the input, the processor will send data to the bank, the processor there then calculates the transaction and makes the necessary changes. When that is done, data is sent back to the ATM machine. Then the processor sends instructions to the output devices (the printer and the cash dispenser) to print money/receipt.
A skimmer essentially has a device which reads the magnetic information from the back of the card and creates a digital copy of that. It then stores it within a memory slot. It does not change the functionality of the ATM machine, it simply copies card information, so data is still send to the bank and so on. The other part of a skimming machine is the use of a camera, hidden such that it can capture the user entering their pin number. The camera is constantly on, and so it captures everything the user does, storing the captured footage on a memory card. This way, the scammers are able to create a bogus card using the data captured from the skimmer in order to steal money.
Explain the relationship between the IT system and the social/ethical concern described in Criterion A.
The system is essentially a breach of credit card information which may lead to a loss of money. The manner in which ATM machines allow such a bogus skimming device to be installed allows for this breach of privacy. The ATM machine must be constructed in a way which prevents scammers from installing skimming devices. The problem with ATM machines is that they require the card to be inserted into the machine so that they can withdraw informations (not all ATM machines). This can then lead to skimming.
The system is essentially a breach of credit card information which may lead to a loss of money. The manner in which ATM machines allow such a bogus skimming device to be installed allows for this breach of privacy. The ATM machine must be constructed in a way which prevents scammers from installing skimming devices. The problem with ATM machines is that they require the card to be inserted into the machine so that they can withdraw informations (not all ATM machines). This can then lead to skimming.
Evaluate the impact of the social/ethical issues on the relevant stakeholders.
ATM machines of course have clear advantages, especially for a hospital or a business. The main one being that they attract more customers. Many customers nowadays do not carry cash with them, but instead only their credit cards. So by having an ATM machine installed in the building, customers are more inclined to go there. In addition to that, many outside customers may enter the shop or business just to use the ATM machine. But, that in itself can attract customers as they will be subjected to advertisements. Plus, for businesses which only deal with cash, if the customer has no cash with them, and is forced to go outside to an external ATM machine, they might be inclined to change their mind about buying the product, which may stray customers.Another advantage is that ATMs have a transaction fee. Therefore if a business installs an ATM, it may make money from people's transactions using it.
However, installing an ATM machine has several disadvantages for the business as well. The main one is the chance of Skimming which may occur. It is easy for users to dress up as 'technicians' and tamper with the ATM machines. Therefore, if customers are skimmed, it will ruin the image of the business which implemented the ATM machine. In addition to that, the addition of ATM machines may add unnecessary costs for the business, which may impact it negatively (especially if its a very small business). The cost of installation is added, plus the business must invest in security to ensure that the ATM machines are not tampered (cameras), as well as, routine checks on the ATM machines. It must also invest in educating its employees on how to check for skimming devices. Although rare, another problem is that the ATM machine might swallow the customer's cards, this means that the business must also hire technicians.
Criterion D
ATM machines of course have clear advantages, especially for a hospital or a business. The main one being that they attract more customers. Many customers nowadays do not carry cash with them, but instead only their credit cards. So by having an ATM machine installed in the building, customers are more inclined to go there. In addition to that, many outside customers may enter the shop or business just to use the ATM machine. But, that in itself can attract customers as they will be subjected to advertisements. Plus, for businesses which only deal with cash, if the customer has no cash with them, and is forced to go outside to an external ATM machine, they might be inclined to change their mind about buying the product, which may stray customers.Another advantage is that ATMs have a transaction fee. Therefore if a business installs an ATM, it may make money from people's transactions using it.
However, installing an ATM machine has several disadvantages for the business as well. The main one is the chance of Skimming which may occur. It is easy for users to dress up as 'technicians' and tamper with the ATM machines. Therefore, if customers are skimmed, it will ruin the image of the business which implemented the ATM machine. In addition to that, the addition of ATM machines may add unnecessary costs for the business, which may impact it negatively (especially if its a very small business). The cost of installation is added, plus the business must invest in security to ensure that the ATM machines are not tampered (cameras), as well as, routine checks on the ATM machines. It must also invest in educating its employees on how to check for skimming devices. Although rare, another problem is that the ATM machine might swallow the customer's cards, this means that the business must also hire technicians.
Criterion D
Evaluate one solution that addresses at least one problem identi ed in Criterion C.
The best solution for the problems caused by the ATM machine is to set up a camera system and hire a security guard to watch over the ATM machine through the camera. This addresses the problem of skimming in the first place, preventing skimming devices to be installed. This solution has both advantages and disadvantages.
The advantages are that through this, the business can minimize the risks of skimming occurring in the first place, which solve all the social and ethical issues involved. It also sets a standard for the store, attracting even more customers.
However, it has two clear disadvantages as well; one, it is only as good as the security guard hired. If he takes a break or a rest, skimming may still occur. Another problem is that it is highly difficult to see accurately what exactly is happening through a camera. Plus, if the store is crowded and there are lots of customers around the ATM machine, it will be impossible to discern the skimmer. Finally, it adds lots of costs for the business.
The best solution for the problems caused by the ATM machine is to set up a camera system and hire a security guard to watch over the ATM machine through the camera. This addresses the problem of skimming in the first place, preventing skimming devices to be installed. This solution has both advantages and disadvantages.
The advantages are that through this, the business can minimize the risks of skimming occurring in the first place, which solve all the social and ethical issues involved. It also sets a standard for the store, attracting even more customers.
However, it has two clear disadvantages as well; one, it is only as good as the security guard hired. If he takes a break or a rest, skimming may still occur. Another problem is that it is highly difficult to see accurately what exactly is happening through a camera. Plus, if the store is crowded and there are lots of customers around the ATM machine, it will be impossible to discern the skimmer. Finally, it adds lots of costs for the business.
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