USE OF INFORMATION TECHNOLOGY AND THE WORLD BANK

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CHAPTER I
INTRODUCTION
1.1 Background
In today's modern era, the word 'easy' to be so it needs so that in almost all aspects of life, people seek a device that makes it easy to do something.
This includes the case of banking transactions, including funds in bank storage, retrieval, management and use its own funds.
Today, almost every bank customers do their banking activities using the convenience provided by the Bank, such as withdrawing money through ATM, debit card services, credit cards, or anything else. Provision of facilities and services like it unofficially has become such a necessity (mandatory) for retail-oriented bank today. This perception is reinforced by a survey on customer satisfaction carried out by a magazine ekomomi few years ago, which concluded that the major factor in seeing a community assessment of whether or not the Bank is whether the Bank shall provide ATM facility or not.
In meeting the 'demands' ease which translates as a service to its customers, of course, the Bank is also required to give priority to dealing with the safety factor using the service. One important factor in meeting the demands of this protection is in terms of providing the card technology used. ATM cards, debit cards or credit cards issued by the Bank is currently the majority are still using this type of technology and the same card, ie card with magnetic stripe.
1.2 Problem formulation
Data from the Indonesian Credit Card Association (Akki), with the amount of the credit card issuer (issuer) in 2007 as many as 21 institutions, with more than 9 million credit cards circulating in the community, the level of fraud or misuse of the card (fraud) that occurs is about 35 billion dollars per year. From the amount of fraud at the top, is the biggest fraud in the form of counterfeiting or copying cards (Counterfeit).
Apart from the activities of Counterfeit, fraudulent activity can also be done by:
· Theft of wallet, checkbook, debit card or credit card.
· Change the address account by criminals.
· Theft of information from the home by friends, relatives or others.
· Shipping email / sms / phone and pretends to be a Bank party / parties trusted to find out information that is privacy.
· Through hacking, computer viruses and spyware or ATM machines.
· Violation of data in schools, retail stores, banks, hospitals or other parties who have access to personal information.
· Employees who have access to personal data.
· Criminal intercepting conversations in public facilities.
· Through a new and different methods are constantly being developed by the criminals.
(Source: 2007 Identity Fraud Report, Javelin Strategy & Research)
1.3 Objectives
The world of banking is one institution that was instrumental in the economy of a country (particularly in financing the economy). This, based on, the main functions of banking which is an intermediary institution between the parties that the excess funds (surplus of funds) to the parties that need funding (lack of funds). In addition to acting as agent of development that could encourage development progress through credit facilities and ease the payment process.
CHAPTER II
BASIS OF THEORY
2.1 Definition of Bank
Bank is a financial intermediary institutions are generally established with the authority to accept deposits, lend money, and issue promissory notes, known as banknotes. The word comes from the Italian bank Banca means the exchange. Meanwhile, according to the Law of the Republic of Indonesia Number 10 Year 1998 November 10, 1998 on the banks, which meant the banks are business entities that raise funds from the public in the form of savings and channel them to the public in the form of loans or other forms in order to improve standard of living of the people.
The banking industry has undergone major changes in recent years. The industry is becoming more competitive because of deregulation legislation. Currently, the bank has the flexibility in the services they offer, the location where they operate, and the rates they pay depositors for deposits.
Usually he is given an attractive remuneration such as, flowers and gifts as a stimulus for the community. Events raise funds, form of lending to the public. While other banking services provided to support the smooth operation of the primary. Bank was founded by prof. Dr. Ali Afifuddin, SE In my opinion, the bank is a tool that allows people to save money activity, in terms of commerce, or for future investment. The world of banking is one institution that was instrumental in the economy of a country (particularly in financing the economy). Here are some benefits of banking in the life:
1. As a model of investment, which means, derivative transactions can be used as a model of investing. Although in general is kind of short-term investments (yield enhancement).
2. As a way of hedging, which means that derivative transactions can serve as one way to eliminate risk by hedging (hedging), or also called as risk management.
3. Pricing information, which means, derivatives transactions may serve as a means of seeking or providing information about the prices of certain commodities in the future (price discovery).
4. Speculative function, which means that derivative transactions may provide the opportunity of speculation (speculative) to changes in market value of derivative transaction itself.
5. Production management functions work well and efficiently, which means that derivative transactions may give an idea to a manufacturer of production management in assessing the demand and future market needs. Regardless of the function is-function banking (banks) are the primary or its derivatives, it is worth noting for the banking world, is a philosophical goal of the existence of banks in Indonesia. This is very clearly reflected in Article four (4) of Law No. 10 of 1998 which explains, "Banking Indonesia aims to support the implementation of national development in order to improve equity, economic growth and national stability toward the improvement of the welfare of the people". Deeper review of the business activities of the bank, the bank (banking) Indonesia in conducting its business must be based on the principle of economic democracy that uses the precautionary principle hatian.4 This, clearly illustrated, because philosophically the bank has the function of macro and micro towards nation-building process .
2.1.1 History of Banking in Indonesia
History of banking in Indonesia is inseparable from the Dutch East Indies colonial times. At that time De Javasche Bank, NV was founded in Batavia on January 24, 1828 was followed Escompto Nederlandsche Indische Maatschappij, NV in 1918 as the holder of the monopoly of the purchase of agricultural products in domestic and overseas sales and there are some banks that plays an important role in Indian The Netherlands. The banks are there, among others:
1. De Javasce NV.
2. De Post Poar Bank.
3. Hulp en Spaar Bank.
4. De Algemenevolks Crediet Bank.
5. Handles Maatscappi Nederland (NHM).
6. Handles Nationale Bank (NHB).
7. De Escompto Bank NV.
8. Nederlansche Indische Handels
In addition, there are also banks belonging to Indonesia and foreigners such as from China, Japan, and Europe. These banks include:
1. NV. Spaar En Nederlandsch Indische Bank Deposits
2. National Bank Indonesia.
3. Merchant Bank of gray.
4. Boemi Bank NV.
5. The Chartered Bank of India, Australia and China
6. Hongkong & Shanghai Banking Corporation
7. The Yokohama Species Bank.
8. The Matsui Bank.
9. The Bank of China.
10. Bank of Batavia.
At the time of independence, banking in Indonesia increased again developed and developing countries. Some Dutch banks nationalized by the government of Indonesia. The banks are there in the early days of independence, among others:
1. NV. Nederlandsch Indische Spaar En Deposit Bank (now Bank OCBCNISP), established 4 April 1941 with headquarters in Bandung
2. Bank Negara Indonesia, established on July 5, 1946 which is now known as the BNI '46.
3. Bank Rakyat Indonesia, which was established on February 22, 1946. This bank was derived from De Algemenevolks Crediet or Syomin Ginko Bank.
4. Bank Surakarta airline Prosperous Justice (MAI) in 1945 in Solo.
5. Bank Indonesia in Palembang in 1946.
6. National Commerce Bank Indonesia in 1946 in Medan.
7. Indonesian Banking Corporation in 1947 in Yogyakarta, later became Bank of Amrita.
8. Bank NV in 1946 in Manado, Sulawesi.
9. Trade Bank NV in Samarinda Indonesia in 1950 was merged into Bank of the Pacific.
10. East Bank NV in Hyderabad renamed Bank enjoy doing. Then merged with Bank Central Asia (BCA) in 1949.
In Indonesia, the practice has spread banking to remote rural areas. Bank financial institutions in Indonesia shaped in the form of Commercial Banks, Rural Banks (BPR), Islamic Banks, and also the People's Bank Financing the Sharia (SRB). Each of these different forms of bank institution characteristics and functions.2.1.2 Objectives of banking services
Bank services are very important in a country's economic development. Banking services are generally divided into two objectives. First, as a provider payment mechanism and an efficient tool for customers. For this, the bank provides cash, savings, and credit cards. This is the most important role of banks in economic life. Without the provision of efficient payment instruments, then goods can only be traded by bartering that takes time.
Secondly, by accepting savings from customers and lend it to those who need the funds, meaning the bank increases the flow of funds for investment and a more productive use. If this role goes well, the economy of a country will menngkat. Without this flow of funds, the money just sitting in one's pocket, one can not obtain loans and business can not be built because they do not have the loan funds.2.1.3 Types of banks and their functions
Three main groups of financial institutions - commercial banks, savings institutions and credit unions - which are also called storage agencies because most of the funds come from customer deposits. Commercial banks are the largest group of institutions when measured by the amount of storage assets. They perform a similar function with savings institutions and credit unions, namely, accepting deposits (liabilities) and make loans (However, they differ in the composition of assets and liabilities, which are much more varied).
Comparison of the concentration of bank's asset size, suggests that the consolidation of banking appears to have reduced the smallest share of bank assets (assets under $ 1 billion). These banks - with assets under $ 1 billion - tend to specialize in the retail or consumer banking, such as providing residential mortgages, consumer loans and local deposits. While the bank's assets are relatively larger (with assets of more than $ 1 billion), consists of two classes is a regional or super regional bank. They engage in a more complex wholesale about komersialperbankan activities, including consumer credit and housing and commercial and industrial loans (D & I Lending), both regionally and nationally. In addition, banks - large banks have access to buy the fund (fund) - such as inter-bank funds or government funds (federal funds) - to finance their lending and investment activities. However, some very large banks have a different title, namely the Central Bank. Currently, five banking organizations form groups Central Bank, namely: Bank of New York, Deutsche Bank (through acquisitions bankers trust each other), Citigroup, JP Morgan, and HSBC Bank in the United States. However, numbers have declined due to megamergers. It is important to note that, assets or loan is not always an indicator of a bank is the central bank. But, a combination of locations with reliance on nondeposit sources of funds or loans.
2.2 Information Technology
Information Technology is a general term that describes any technology that helps people in creating, modifying, storing, communicating and / or disseminate information. IT brings together high-speed computing and communications for data, voice, and video. Examples of Information Technology is not only a personal computer, but also telephone, TV, electronic household appliances, and modern handheld devices (eg mobile phones).2.2.1 History
At the beginning of history, people exchanging information through language. So language is a technology, the language allows one to understand the information conveyed by others. But the language is passed from mouth to mouth only lasted a short time, ie only when the sender communicate information through words alone. After the speech was finished, then the information in the hands of the recipient it will be forgotten and can not be stored longer. Besides voice coverage is also limited. For a certain distance, though still audible, the information conveyed through language will sound degraded even disappear altogether.
After that develops technology to deliver information through pictures. With a range of images could be further information. This image can be carried and passed on to others. In addition there is information that will last longer. Some pictures ancient relics still exist today so that people now can (try to) understand the information to be conveyed manufacturer.
The discovery of the alphabet and arabic numbers easier way to deliver information more efficiently than the previous way. An image that represents an event created by the combination of the alphabet, or by writing numbers, such as MCMXLIII replaced by 1943. Technology with the alphabet is easy in the writing of the information.
Then, the printing technology enabling the delivery of information even faster. Electronic technology such as radios, televisions, computers become faster resulting in information spread over a larger area and longer stored.
CHAPTER III
DISCUSSION
3.1 Development of Information Technology in Banking
In terms of Information Technology (IT), almost all banks have not been many advances in IT use. This is due to limited human resources master banking IT, or IT experts who understand the limitations of the mechanisms and workings of the banking system. IT is an expensive investment, while the bank's financial condition has not been established as conventional banking. The other thing is the absence of vendors who intend to invest in banking.

Perkembangan teknologi informasi telah merambah ke seluruh lapisan masyarakat. Tidak terkecuali pada bidang kesehatan, khususnya pada manajemen rumah sakit. Pada awalnya, rumah sakit mengandalkan tenaga manual baik untuk menyimpan database pasien, inventaris, penggajian dokter dan karyawan, pembuatan dokumen, administrasi dan lain lain. Seaat ini, rumah sakit mengandalkan berbagai kemajuan teknologi informasi untuk memudahkan manajemen administrasi di rumah sakit, memudahkan administrasi keluar masuk pasien, manajemen kasir, memudahkan pencarian database pasien, mencatat inventaris rumah sakit baik berupa sarana maupun obat obatan, sistem akuntansi untuk memudahkan penggajian, dan sebagainya. Pencetakan kartu pasien, surat keterangan dan surat surat lain juga menjadi lebih mudah dengan adanya teknologi informasi. Penggunaan sistem jaringan juga semakin memudahkan antar dokter atau divisi dalam rumah sakit untuk bertukar data, karena setiap database akan mudah diakses dari seluruh komputer di rumah sakit tersebut, tanpa harus berjalan jauh menuju ruang arsip dan tanpa harus susah payah mencari dokumen dalam lemari, karena sudah dimudahkan dengan komputer dan jaringan. Apalagi bila memnggunakan jaringan nir kabel atau biasa disebut wireless, rumah sakit tidak perlu susah payah merapikan kabel yang berseliweran karena tinggal menyediakan access point di setiap sudut ruangan. Keberadaan internet juga memudahkan dokter dan pihak rumah sakit untuk mempublikasikan rumah sakit melalui internet. Bahkan juga melalui internet, pihak rumah sakit bisa menyediakan berbagai fasilitas penting misalnya konsultasi online, pendaftaran pemeriksaan, pembayaran online, dan sebagainya. 1. E-HEALTH E-Health merupakan aplikasi teknologi informasi dan komunikasi yang mencakup keseluruhan cakupan fungsi yang mempengaruhi sektor kesehatan. E-Health memiliki arti yang luas bukan hanya sekedar internet atau dotcom saja. E-Health merupakan solusi Enterprise di bidang kesehatan karena melibatkan banyak pihak mulai dari masyarakat sampai dengan Produsen Obat atau Farmasi. E-Health dalam berbagai hal dapat meningkatkan akses ke pelayanan kesehatan dan meningkatkan kualitas dan efektifitas dari pelayanan yang diberikan. Aplikasi atau solusi e-Health meliputi produk, sistem dan pelayanan yang menjadi lebih sederhana dengan aplikasi berbasis internet. E-Health meliputi aplikasi untuk para profesional dan otoritas kesehatan yang lebih baik daripada sistem kesehatan pribadi untuk masyarakat dan pasien. Sebagai contoh adalah health information networks, electronic medical records, telemedicine services, personal wearable and portable communicable systems, health portals, dan banyak teknologi komunikasi dan informasi lain yang bertujuan membantu pencegahan, diagnosa, perawatan, monitoring kesehatan, dan manajemen gaya hidup. 2. TELEMEDICINE Telemedicine adalah layanan kesehatan yang dilakukan dari jarak jauh. Telemidicine adalah transfer data medik elektronik dari satu lokasi ke lokasi lainnya. Telemedicine adalah praktek kesehatan dengan memakai komunikasi audio, visual dan data. termasuk perawatan, diagnosis, konsultasi dan pengobatan serta pertukaran data medis dan diskusi ilmiah jarak jauh. Berdasarkan pengertian-pengertian diatas, dapat kita pahami bahwa cakupan telemedicine cukup luas, meliputi penyediaan pelayanan kesehatan (termasuk klinis, pendidikan dan pelayanan administrasi) jarak jauh, melalui transfer informasi (audio, video, grafik), dengan menggunakan perangkat-perangkat telekomunikasi (audio-video interaktif dua arah, komputer, dan telemetri) dengan melibatkan dokter, pasien dan pihak-pihak lain. Secara sederhana, telemedicine sesungguhnya telah diaplikasikan ketika terjadi diskusi antara dua dokter membicarakan masalah pasien lewat telepon. Manfaat telemedicine mencakup ke dalam 3 aspek yang saling terkait satu sama lain yaitu pasien, dokter dan rumah sakit. Manfaat langsung bagi pasien adalah: · Mempercepat akses pasien ke pusat-pusat rujukan. · Mudah mendapatkan pertolongan sambil menunggu pertolongan langsung dari dokter-dokter pribadi. · Pasien merasakan tetap dekat dengan rumah dimana keluarga dan sahabat dapat memberikan dukungan langsung. · Menurunkan stres mental atau ketegangan yang dirasakan di tempat kerja. · Menseleksi antara pasien-pasien yang perlu dibawa ke rumah sakit dan pasien yang tidak perlu perawatan di rumah sakit akan tetap tinggal di rumah. Contoh aplikasi yang digunakan dalam telemedicine: · Jaringan Informasi Medis Asia-Pasifik via ETS-V (AMINE – Asia Pacific Medical Information Network via ETS-V). Setelah selama empat tahun beroperasi (1992-1996) ternyata 80% traffik adalah trafik non-klinis seperti masalah-masalah administrasi, manajemen rumah sakit, dan urusan logistik. Oleh Karena itu, AMINE merekomendasikan agar desain telemedicine di masa yang akan datang turut memperhitungkan trafik-trafik non-klinis seperti ini. Hasil yang nyata adalah AMINE telah berhasil menyelamatkan banyak pasien terutama di negara berkembang di asia pasifik. · Telemedicine via ACTS (Advanced Communications Technology Satellite ) – NASA. ACTS merupakan salah satu pionir dalam mengaplikasikan telemedicine via satelit. Salah satu eksprimen telemedicine yang dilakukan adalah telemammography, yang mendemontrasikan pengiriman citra mammografi resolusi tinggi dari daerah pedesaan ke kota menggunakan jaringan akses satelit. Mammografi adalah citra radiologi yang dapat membantu pendeteksian kanker payudara dalam tahap dini. Sayangnya dibutuhkan ahli radiologi yang berpengalaman untuk menginterpretasikan citra tersebut yang tidak selalu tersedia didaerah pedesaan atau kota kecil. Eksprimen ini menghubungkan tempat screening di kota kecil atau pedesaan dengan suatu institusi medis di kota besar. Keberhasilan program ini membutuhkan integrasi antara satelit dan infrastruktur terestrial di fakultas kedokteran kampus atau rumah sakit, pemoresan citra, keamanan data pasien, juga perangkat lunak yang mengontrol proses screening. Salah satu kesulitan yang dihadapi pada telemammografi ini adalah citra yang dihasilkan berukuran besar. Untuk teknik mammography direct digital, kompresi 20:1 diperlukan agar citra dapat ditransmisikan kurang dari 1 menit dengan menggunakan T1. Tetapi kompresi sebanyak ini mengorbankan beberapa data pada citra. Karena itu eksprimen ini menyarankan pengembangan teknik kompresi citra disamping perbaikan sistem yang mampu mentransmisikan citra lebih cepat. 3. TELEHEALTH Terdapat dua teknologi dalam telehealth, yaitu: store forward dan real time teknologi. 1. Teknologi simpan dan sampaikan (store and forward) Misalnya adalah gambar yang didapatkan dari elektonik seperi teknologi x ray, dapat dikirimkan pada spesialis untuk diinterpretasi. Gambar tersebut saja yang berpindah. Radiologi, dermatologi, patologi adalah contoh spesialisasi yang sangat kelihatan menggunakan teknologi ini. 2. Teknologi real time Real time adalah teknologi yang membuat pasien dan provider berinteraksi dalam waktu yang sama. Banyak alat telekomunikasi yang memfasilitasi komunikasi dua arah menggunakan teknologi real time dalam telehealth. Tekhnologi realtime juga dapat membuat alat untuk menstransimisikan gambar dari tempat yng berbeda. Misalnya kamera untuk mengobservasi keadaan klien. Tekhnologi realtime memfasilitasi komunikasi dua arah baik audio maupun video, yang bisa digunakan dalam telehealth Sebagai kombinasi realtime dan robotik, seorang dokter bedah dapat melakukan operasi dengan alat operasi khusus dari jarak tertentu. Prosedur ini disebut dengan telepresence. Telepresence menjadi salah satu sub bagian dari telehealth. Salah satu contoh program telehealth adalah homecare. Sistem ini menyediakan audio dan video interaktif untuk hubungan antara lanjut usia di rumah dan telehealth perawat. Perawat memasukkan data-data pasien secara elektronik dan menganalisanya, jika perlu untuk dilakukan kunjungan, perawat akan melakukan kunjungan ke pasien. 4. TELENURSING Telenursing merupakan praktek keperawatan di dunia maya dan digunakan dalam rangka pemberian pelayanan keperawatan antara pasien dan register ners. Telenursing juga diartikan sebagai penggunaan teknologi telemedicine dalam memberikan pelayanan keperawatan dan praktek keperawatan. Telenursing adalah upaya penggunaan teknologi informasi dalam memberikan pelayanan keperawatan yang merupakan bagian dalam pelayanan kesehatan dimana ada jarak secara fisik yang jauh antara perawat dan pasien, atau antara beberapa perawat. Telenursing sebagai bagian dari telehealth dan beberapa bagian terkait dengan aplikasi bidang medis dan non medis seperti telediagnosis, telekonsultasi dan telemonitoring. Melalui telenursing, perawat mampu melakukan monitoring, pendidikan, follow up, pengkajian dan pengumpulan data, melakukan intervensi, memberikan dukungan pada keluarga dan perawatan multidisiplin yang inovatif serta kolaborasi. Selain itu, dalam praktek telenursing, perawat melakukan pengkajian lanjutan, perencanaan, intervensi, dan evaluasi terhadap hasil perawatan, dan perawat juga menggunakan teknologi seperti internet, komputer, telepon, alat pengkajian digital, dan perlengkapan telemonitoring sistem audio-video, satelit dan sistem komunikasi yang lain. Penggunaan komputer dan teknologi informasi untuk mensupport perawat dan pasien dengan informasi yang lebih efektif. Dalam rangka efisiensi dan efektifitas telenursing, antara perawat dan pasien terhubungkan secara langsung menggunakan sistem transmisi elektronik. Telenursing dapat mengurangi hari rawat di RS sehingga berdampak pada berkurangnya biaya perawatan (efektif dan efisiensi dari sisi biaya kesehatan), mengurangi jumlah kunjungan ke pelayanan kesehatan, peningkatan jumlah cakupan pelayanan keperawatan dalam jumlah yang lebih luas dan merata, dapat dimanfaatkan dalam bidang pendidikan keperawatan (model distance learning) dan perkembangan riset keperawatan berbasis informatika kesehatan dan meningkatkan kepuasan perawat dan pasien terhadap pelayanan keperawatan yang diberikan serta meningkatkan mutu pelayanan perawatan di rumah (home care). Selain itu telenursing juga meningkatkan rasa aman (safety) perawat dan klien.

Lack of innovation in banking, IT limitations, less competitive bank financing and also to enhance the ability of banking practitioners in reading the market and educate customers not regardless of the quality of human resources in this industry. Based on the data collected, less than 50 percent of HR banking background. Most of the bank's human resources is still a conventional background. Lags in the education industry in anticipating the needs of the banking industry is not independent of the delay in the birth of education compared to the financial industry, the limitations of publications and books as well as the absence of a connecting linkage between Islamic banking to education almost did not materialize. And if the linkage between education finance with banking institutions can be built can be generated a number of new findings that will support the growth of Islamic banking in Indonesia.
Application of IT in banking is absolutely necessary in meeting the demands of its customers, it is not only related to market share but also emotionally attached to service quality improvement in the management process and the products sendiri.Oleh Therefore, differences in the products of Islamic banks need attention special and has a strong networking security concepts so as to create a good image in the security and economic convenience.
3.2 Banking Facilities
In meeting the 'demands' ease which translates as a service to its customers, of course, the Bank is also required to give priority to dealing with the safety factor using the service. One important factor in meeting the demands of this protection is in terms of providing the card technology used.
ATM cards, debit cards or credit cards issued by the Bank is currently the majority are still using this type of technology and the same card, ie card with magnetic stripe. With a magnetic stripe card is a card on the back side there is a magnetic strip that is used to store data. Each time the card is used for transactions, then the CAD (Card Accepting Device) will read the data in the magnetic stripe and then send it to the central processing computer (Host).
Magnetic stripe can store important data for further processing, but the amount of storage capacity is very limited, lasting only a few dozen bytes only. Magnetic stripe is usually divided into 3 parts (Track), which is Track 1, Track 2 and Track 3. On the standard used by banks and Track 2 data is the most important data, because the track is stored data card number is the key identity of a customer. While Track 1 and Track 3 is often not used.
The process of introduction and examination of the truth of the card, will be conducted by the Host computer after receiving the shipment data submitted by the CAD. On credit card transactions, in addition to checking the validity of the card carried by the Host, do also check the validity of the card holder who performed manually, by the way see the signature or the ones listed on the card. By checking mechanism as above, and easily imitated card numbering algorithm, then the security level of use with magnetic stripe cards to be low. With relatively simple equipment, a magnetic stripe card can be easily and quickly duplicated.
Data from the Indonesian Credit Card Association (Akki), with the amount of the credit card issuer (issuer) in 2007 as many as 21 institutions, with more than 9 million credit cards circulating in the community, the level of fraud or misuse of the card (fraud) that occurs is about 35 billion dollars per year. From the amount of fraud at the top, is the biggest fraud in the form of counterfeiting or copying cards (Counterfeit).
Apart from the activities of Counterfeit, fraudulent activity can also be done by:
· Theft of wallet, checkbook, debit card or credit card
· Change the address account by criminals
· Theft of information from the home by friends, relatives or other
· Shipping email / sms / phone and pretends to be a Bank party / parties trusted to find out information is a privacy
· Through hacking, viruses and spyware computer or an ATM machine
· Violation of data in schools, retail stores, banks, hospitals or other parties who have access to personal information
· Employees who have access to personal data
· Criminal intercepting conversations in public facilities
· Through a new and different methods are constantly being developed by criminals
(Source: 2007 Identity Fraud Report, Javelin Strategy & Research)

      Of the above methods of fraud, the common thread that obtained in the case of card misuse process is preceded by obtaining important information related to the card holder, and then make a mock card with such important data. After that, be a magnetic stripe card that can be used to transact. Thus, ways to reduce or inhibit the process of making counterfeit cards is felt the most effective way is making a card with technology where the process of writing data to the card and validity checks done in a way that is not easy or complicated to do. For that technology right now is the use of technology Chip Card or Smart Card. On that basis, the Visa International and MasterCard, the two organizers of the international payment system using credit cards, requires that the displacement (migration) from a magnetic stripe-based card-based smart cards since 2007. Similarly, Bank Indonesia, the Bank Indonesia Regulation (PBI) No.. 7/52/PBI dated December 28, 2005 About APMK (Payment Card), has required the Bank Card Issuer for immediate migration to chip cards by the end of 2009.
3.2 smart card technology

      Smart Card is a type of card in it planted integrated circuit (IC) that can be used to store and exchange data. ICs are used in the Smart Card is a microchip that can perform data processing and storing thousands of bytes of data. So it works from the principle that can do a fairly complex data processing, Smart Card can be analogous to a mini computer device but without the display screen and keyboard.

            Compared with the technology used by the magnetic stripe cards, Smart Cards have a better resistance in terms of data storage of cardholder identity and other vital data. In Smart Card security system is also applied to protect data over a wide range of security threats (security threats), from the simple such as negligence by the cardholder's password storage, up to the possibility of an intrusion (hacking) from unauthorized access.

            In terms of data storage capabilities, the ability of the Smart Card is far above the ability of magnetic stripe cards. This is because the IC is used in the smart card can be used to store data up to thousands of bytes. And the amount of data that can be stored will continue to evolve along with technological developments.
3.3 Data Security System

            In the Smart Card system, where the primary use is for trading activity, the application of security principles include transaction security is a mandatory thing. Security principles are:
1. Data Integrity
This function which will ensure that the data in the record documents (listed on the Smart Card) and transaction data has been checked and confirmed the truth of its contents, from the beginning to the end of the transaction.
2. Authentication
This function will perform the examination, then confirm that the parties involved in the transaction or data exchange (value) are parties which are intended or authorized.
3. Non-repudiation
This function is to ensure the perpetrators of the transaction and avoid the possibility of denial of the perpetrator transactions by verifying the digital signature contained in the transaction data, and ensure that the data matches (match).
4. Authorization and Delegation
Function Authorization (authorization) is a process that gives the right of access to certain data into one system.
While the delegation (delegation) is the utilization of a third party, namely Cerificate Authorities, to make arrangements and certify every party involved in the system. In systems that use the EMV smart card transactions as a protocol, its security system will include the following:
5. CAM - Card Authentication Method
That is the mechanism used to prevent card counterfeiting and alteration of data inside the chip.
6. CVM - Cardholder Verification Method
Namely the method of verification to check whether the card holder is the party that does have the right to use the card. Verification methods used can be determined by the Issuer whether using a PIN or other means. If using a PIN, verification can be done offline and online.

7.    On-line Card and Issuer Authentication
8. That is the mechanism whereby the card can be authenticated by the Issuer online and vice versa card can authenticate against the Issuer that gave the response.
9. Non-repudiation of transactions
That is the mechanism that uses a PKI (Public Key Infrastructure) to verify that the perpetrators of the transaction have been using a valid key that has been assigned for the perpetrators of such transactions.
10. Secure script delivery
Delivery mechanism that is specific commands to the card to do what is commanded by the Issuer. For example to do the blocking cards and so forth.
3.4 Implementation of Smart Cards in Indonesia

            In accordance with the provisions of Bank Indonesia as stipulated in the PBI. 7/52/PBI dated December 28, 2005 About APMK, which includes ATM Card, Debit Card, Credit Card and Prepaid Card, Smart Card implementation in Indonesia will start with the replacement of magnetic stripe card in a card with a credit card or smart card chip. In the same conditions, Bank Indonesia also has called for immediate migration to the Smart Card for ATM cards, Debit cards and prepaid cards. Thus will all the basic functions on credit cards, ATM cards, debit cards or prepaid cards will also be applied on the card Smart Cards.
Basic functions are:
- The function of the purchase at the store (merchant)
- The function of cash withdrawal at ATMs
- Function check balances at ATMs
- Or other functions that already exist in the current ATM
Further utilization of the Smart Card

            In addition to basic functions such as those noted above, Smart Cards can also be used for a variety of fields, particularly in areas that require rapid delivery of information, submission of data from one party to another party or fields that implement high security system.
Smart Card can be applied in such fields as follows:
Loyalty and Stored Value
Utilization of a majority of the Smart Card is a stored value, that is storing the data / value, which is usually also associated with Loyalty program, a program to record and give rewards to customers who often make a purchase.
Applications Stored Value will store some value (value) in memory Smart Card that can be used or exchanged for goods or services. Use of Stored Value applications felt to be more efficient, safe and convenient for customers. Examples of implementation are such payment parking, toll, to purchase games or to restrictions on the purchase of fuel.
E-Commerce
Smart card usage in the e-Commerce can assist in the process of transaction data recording and use of the card to make purchases safely. Smart Card Usage in E-Commerce applications may include implementation of a credit card or micro-payment, which can be used to transact with a very small value.
Health Services
Smart Card can be used to record health data card holder, so that cardholders can perform in a variety of different hospitals, and the hospital can trace the history of health card holders, so it can perform the appropriate action.
Network Security
Utilization of public network or the Internet to conduct transactions, can be further improved safety when using the Smart Card.
Users can be identified and granted authorization permissions on certain information that has been previously defined.
ID card and access to certain areas
Restrict permissions on a particular area or room in an office or factory can be done with the use of Smart Cards as ID cards, where each use of access rights will be recorded in the system and used to perform the evaluation, tracing or other things.
3.5 Constraints Implementation
Judging from the high levels of abuse based on magnetic stripe cards, smart card implementation in Indonesia is quite urgent. But the implementation is not without obstacles. The main obstacle faced by Indonesian banks is investment needs and cost constraints required for the purposes of this migration was very high.
Taking into account and assume the following things:
· The price of a Smart Card-card around U.S. $ 1
· Cost upgrades ATM terminals in order to do a reading card Smart Cards around U.S. $ 1,000 per terminal
· Cost to upgrade the EDC terminal is equipped with a smart card reader around U.S. $ 300 per terminal
· Cost to upgrade back office applications to identify transactions that use smart cards about U.S. $ 100,000
· Cost of training human resources in order to have sufficient understanding of the smart card is U.S. $ 1,000 per person
then if a middle class bank with 500 employees directly involved in customer service, and ATM machines have 100 pieces, 500 pieces EDC and 10,000 customers, then the minimum needed funds amounting to U.S. $ 860,000, which if converted using a value of Rp. 9200 per U.S. $ 1, then its value is around Rp. 7.9 billion.

            Then, why the Bank Indonesia calls, or even require banks in Indonesia to do the migration to Smart Cards? None other than the reason is to anticipate and avoid greater losses from misuse of cards, which are increasingly higher and more sophisticated.

            The provisions of Bank Indonesia in this regard ultimately aims to protect the banking industry itself and would also protect consumers of banking in this case is the customer of Bank.

            The potential misuse of the cards in Indonesia, where the suspected culprit is an international syndicate, were admittedly quite high. Data at Bank Indonesia recorded in 2006, the value of card abuse that occurred at Rp. 36 billion. While in February 2008, 7000 RI police managed to find fake credit card, most of which are already used in various countries.
3.6 Potential Development Services

            Besides the high cost of the necessary investment and, apparently with the use of Smart Cards, there are plenty of potential for the development of services that can be done by the Bank in order to increase fee-based revenue (fee-based income).
Potential development of services that can be conducted by the Bank, among others, are as follows:
· Management of toll payment system.
In this case the card Smart Card, which is owned by the customer can install the application for payment of toll, which will automatically reduce (deduct) the balance stored on the card. Above services, the Bank also had the opportunity to precipitate funds
collected prior to submission to the management of toll roads.
· Payment or purchase retail
Smart Cards are issued by the Bank may also serve as a means of payment or purchase with a small value of money, such as parking payment, purchase tokens to play games, transactions on the Internet, make a donation and others.
· Loyalty Programme
Smart Card is used to store and record every transaction that is used by the customer, who then collected the value recorded in the Smart Card can be used to perform other transactions. With this service, the Bank could manage the funds collected and also become a program for customer retention.
All of the above services enable the Bank to obtain additional revenue derived from fees, which can indirectly be used and accounted for mengembalikasn investments already incurred to be able to publish and manage the Smart Card system.
If it is assumed for each of the services the Bank would get a fee of Rp. 3.000, - per transaction, then the bank with 10,000 customers to generate additional revenue of Rp. 360juta per year for one type of service.3.7 Technology at Bank
Now we can enjoy the convenience of banking services through Internet technology, either through internet banking, sms and other transactions, the competitive advantage of banks and financial institutions will greatly depend on the ability of technology to implement business processes, manage risk and provide excellent customer service .
Cost is an issue when investing in IT hardware and software. As part of their cost strategy, the bank implemented a business process outsourcing.Berbagai banking software used in the application of this technology, and many vendors offer for the advancement of technology in the bank, below are some banks and software vendors the highest value used by the bank:1. CRM Customer Relationship Management
The benefits of CRM including the reduction of travel costs, crm video to the desktop face to face communication, improved collaboration with customers, improve customer service, cross-selling and smart decision making.
CRM software allows banks to collect data about their customers. With this, banks can create customer profiles, or view, such as wallet share, assets, accounts, credit history and much more. crm solutions Vendor categories include core banking, erp, e-crm, crm contact management and analytical.2. Siebel Systems Inc.
Siebel Systems is the world's leading provider of customer relationship management (CRM) and leading provider of application solutions for business intelligence and standards-based integration.
Products: Siebel Customer Relationship Management (CRM) Solutions, Employee Relationship Management (ERM)
Customer: AMP Financial Services, Deutsche Bank, DHL profile, Fortis Investments, Honeywell
security software
Banks use security software to protect against viruses, spyware, and programs eavesdropping keystroke loggers. Security software also can protect remote access via SSL VPN technology, LAN protection and protection of identity theft such as phishing.
Here are examples of information security software company best.3. WholeSecurity
WholeSecurity Confidence Online ™ solution uses patent-pending detection technology that automatically identifies behaviors and eliminate the threats are well known and the unknown without requiring the user to install or update signatures.
4. E-Business
Benefits of E-Business infrastructure in banking and finance industry are: electronic transactions and guaranteed payment infrastructure. Here are some of the leading vendors for e-business infrastructure solutions.5. IBM Global Services
Provides security and privacy consulting expertise.
Solution: IBM security consulting, systems integration and electronic bill payment and empowering portrayal of the application.
Case Study: IBM Global Services provides security and privacy consulting expertise, ready to apply Identrus depictions and Electronic Bill Payment (EBPP) application, as well as systems integration and project management to Deutsche Bank. Mobile and Bluetooth wireless technology allows the bank to satisfy clients who demand real-time information and accessibility of mobile payments. Here are some wireless technologies and solutions for companies from a well respected and vendor companies.6. Nokia
Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia is dedicated to improving people's lives and productivity by providing easy to use and innovative products like mobile phones, and solutions for imaging, games, media, mobile network operators and businesses. Nokia is a broadly held company with listings on five major exchanges.
Solution: Nokia Mobile Connectivity solution uniquely provides a comprehensive portfolio of system-level solutions that enable rapid return on investment and sustainable competitive advantage for companies. Enterprises are now able to provide 'content to any device' access, regardless of device or network type connectivity - while at the same time, utilizing the existing network, security and application investments.
· Back office
The scope of software and back office solutions include: an activity based costing, asset management, balanced scorecard, data processing, analysis and more profitability. Here is a list of popular vendors, products and additional resources.· SunGard Asset Management Systems
SunGard Asset Management Systems provides a complete range of asset management solutions to global financial institutions, regional asset management institutions, community banks, investment advisors, foundations, and fiduciary.
Product: AddVantage, Charlotte ®, SunGard Custodian Services, Global Plus, Plus Global ® IC, Office Solutions and family affection, SunGard reclaims Tax Service, Series 7 and 11 Trustware Trustware.· Acorn Systems
Acorn Systems is 100% focused on cost and profitability analysis. Acorn Systems provides cost and profit data to hundreds of companies and organizations including Citigroup, Supervalu, Sysco Foods, Charles Schwab, Fisher Scientific and many others. Acorn Systems provides core solutions to clients to improve efficiency and performance of their organizations.
CHAPTER IV
CLOSING
With advances in technology and increased community needs, as well as triggered by rampant misuse of cards by parties who are not entitled to, based on magnetic stripe card technology is no longer able to accommodate those needs. To that end, the application of Smart Card technology-based card is the answer to the needs of the community.
Smart cards can be a solution to the above requirements for implementing good security technology. This is certainly also in accordance with the requirements of the banks themselves are always applied the attitude of prudence (Prudent) in providing service to customers.
The high value of investments and costs required to perform the migration from magnetic stripe to smart card technology, can be covered by the implementation of additional services by the Bank in order to get additional revenue from the fee upon execution of the service.
On the other hand, the image of the Bank that provides high security for its customers is an invaluable price. So the bank has migrated to the Smart Card can be assessed as a priority to the security of bank transactions for its customers.
But one thing is also important to recognize that the problem of data security (data security) is not a destination, but a continuing process. Because on the other side from where we stand, criminals also use sophisticated technology to conquer all the protection that exists.
Smart Card is a technology that is safe, for now. Given the adoption of the technology, it takes a long time and costs to be able to abuse it. However, for a period of 3 or 5 years into the future, Smart Cards may require new innovations to maintain the level of safety.