An already serious problem of computer crime is expected to increase in the years ahead, particularly as easy-to-use, low-cost computers proliferate. Management has the responsibility for devising a security system to prevent such crime. Physical security is one of the simplest and most effective deterrents to electronic crime for businesses using person-sized micro-computer systems. This would restrict access to those directly responsible for its operation. Remote links to micro-systems should be avoided unless other, more sophisticated safeguards have been instituted. All computerized master files should be duplicated and the copies kept in separate locations. Responsibilities for system design, programming, computer operations, and data entry should be segregated among employees, so that no one individual has knowledge and skill sufficient to abuse the computer. Passwords should be required for computer access, and specific entry codes should be assigned to individual functions and operations. Individual terminals should be assigned to specific operations. Programs that will flag accounting operations that do not conform to an established norm should be implemented. Further, if using telephone lines for data transmission, install signal scramblers to inhibit wire taps and prevent unauthorized entry; also, change the access phone number periodically. Finally, an experienced auditor should examine the computer system and recommend safeguards tailored to the system's needs. (Author abstract modified)