Publication details

Lebanese loop and protection techniques against this type of fraud



Year of publication 2015
Type Article in Proceedings
Conference Proceedings of the 12th International Scientific Conference European Financial Systems 2015
MU Faculty or unit

Faculty of Economics and Administration

Field Management and administrative
Keywords e-banking;security;risk;fraud;Lebanese loop
Description Lebanese loop is one of the most frequent types of frauds relating to cash withdrawals from ATMs when an ATM is modificated by a defrauder by installing special additional equipment to gain user’s payment card and then payment card user’s trust and ignorance are exploited by the defrauder to gain the PIN code. If the defrauder has user’s payment card and knows the right PIN code, he/she can withdraw cash, pay for goods and services at shops and e-shops etc. Though currently frauds using the principle of Lebanese loop do not belong to common types of frauds in the Czech Republic, this risk should not be underestimated. Recommendations to reduce Lebanese loop risk are variable. The aim of this paper is to describe Lebanese loop frauds, identify the usual way for realizing this type of fraud and its warning signs, create a scheme of the usual way for Lebanese loop fraud, introduce and interpret results of own quantitative research focused on knowledge of Lebanese loop and define the basic recommendations for payment card users and banks to reduce security risks connected with using of payment cards at ATMs.

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