Free Essay

Bis220 Week1

In: Computers and Technology

Submitted By Burton23
Words 452
Pages 2
Information Technology Acts
BIS 220

Information Technology Acts
There are two acts that seem to work the hardest for the consumer. With the rise in ATM’s and other electronic forms of banking, the Electronic Funds Transfer Act of 1978 provides the consumer with the confidence they once gave solely to the checking system. The Fair Credit Reporting Act, 1970, provided the consumer with protection from unfair reporting and also provided a means to correct false information. These are not the only two things the act provides or protects. The list is long and very helpful for the consumer.
The Electronic Funds Transfer Act was signed by President Jimmy Carter in 1978. This act was designed to govern electronic funds transfers (EFT), which are more common today than the use of cash. The EFT act covers the rights and responsibilities of all parties involved in the transfer of funds. Types of EFT’s commonly used are as follows: * Point of Sale (POS) * Debit Cards * Automated Teller Machine (ATM) * Wire Transfers / online bill pay * Electronic Check Processing
Although these forms of payment are more convenient than checks, they do carry substantially more risk. Thankfully, the EFT act offers the customer protections and ways to dispute fraudulent activities. The Fair Credit Reporting Act (FCRA), 1970 was initially drafted to help standardize the reporting of credit and also ease the availability to creditors. Capaldi asserts in his presentation that “In the 1950’s and 60’s the credit bureaus were small and community based. They often tracked the behaviors of consumers in a specific county or town and primary focused on serving one kind of creditor – bank, finance company, or retailer” (as cited in Furletti, 2002). These bureaus typically only ever reported derogatory items to the creditors. These reports were narrow in findings which led to a limited amount of information for the creditors. The narrow scope of information lacked knowledge of other loans or inquiries that would prove beneficial to the creditor. The FCRA sought to standardize all this personal information so it was more accessible to the consumer and creditor. Making this information more accessible, it opened the doors to a new type of fraud. Identity theft is a $21 Billon industry and not slowing down. The FCRA also seeks to protect the consumer from identity theft. It allows the consumer a dispute and resolution process for fraudulent activity. Together these acts provide a safer more efficient electronic marketplace. Through the constant management, implementation and updating of these acts, society will continue to thrive in a world ran by computers.

Furletti, M. (2002, June). Retrieved from

Similar Documents