A NATIONAL EFTS COULD SUPPLANT THE PRESENT PAPER EXCHANGE SYSTEM. THE BEGINNINGS OF A SUCH A SYSTEM ARE APPARENT IN AUTOMATED BANK CLEARINGHOUSES AND POINT-OF-SALE SYSTEMS. THROUGH SUCH SYSTEMS FUNDS ARE ELECTRONICALLY TRANSFERRED FROM ONE BANK TO ANOTHER, FROM BUYER TO SELLER, OR FROM EMPLOYER TO EMPLOYEE. WHILE SUCH A SYSTEM PERMITS TELEPHONE BANKING AND ELIMINATES THE GROWING AMOUNT OF HANDSORTING AND PAPERWORK, IT HAS A NUMBER OF SERIOUS DISADVANTAGES. THE COMPUTERS WHICH PROCESS SUCH TRANSACTIONS ARE PARTICULARLY VULNERABLE TO CRIMINAL ATTACK. CRIMINAL INTERFERENCE CAN OCCUR DURING EACH OF THE FIVE KEY STAGES OF COMPUTER OPERATION. FALSE DATA CAN BE INSERTED DURING TRANSLATION OF DATA INTO COMPUTER LANGUAGE. COMPUTER PROGRAMMING CAN BE MODIFIED, DESTROYED, OR SOLD TO A COMPETITOR. THE CENTRAL PROCESSING UNIT (CPU) COULD BE SABOTAGED, SUCCESSFULLY DESTROYING IMPORTANT COMPUTERIZED RECORDS. COMPUTER OUTPUT CAN BE STOLEN; AND TRANSMISSION OF OUTPUT TO OTHER COMPUTERS OR TO USERS IS SUSCEPTIBLE TO ELECTRONIC PENETRATION AND THEFT. IN AN EFTS, THE OPPORTUNITIES FOR CRIME WILL BE MANY AND DEFENSE AGAINST THEM WILL BE DIFFICULT. COMPUTER CRIMES INVOLVING AN EFTS ARE POTENTIALLY MORE DEVASTATING THAN COMMON THEFTS. THE COMPUTER CRIMINAL WILL BE MARKEDLY DIFFERENT FROM THE TRADITIONAL CRIMINAL AND THE PENAL SYSTEM WILL NOT BE GEARED TO HANDLE HIM. COMPUTER CRIME IS RARELY DISCOVERED, AND INVESTIGATORS AND PROSECUTORS GENERALLY LACK TRAINING AND EXPERIENCE IN HANDLING COMPUTER CRIME. CURRENT STANDARDS FOR ADMISSIBILITY OF EVIDENCE WILL PRESENT PROBLEMS, AND FRAUD, COUNTERFEITING, AND FORGERY STATUTES DO NOT ADEQUATELY ADDRESS THE PROBLEM OF COMPUTER CRIMES. CURRENT STATUTES MAY PROVE INEFFECTIVE IN PUNISHING SUCH CRIMES, AND CONCEPTS OF MONEY AND FUNDS WILL HAVE TO BE REVISED. EXISTING REMEDIES WILL PROBABLY ALSO PROVE TO BE INADEQUATE TO MEET THE SUBSTANTIAL THREATS TO PRIVACY WHICH A NATIONAL EFTS WOULD ENTAIL. MOREOVER, PROBLEMS OF ACCESS AND ACCURACY WILL MULITPLY AS ABUSES OF INFORMATION INCREASE. IT IS SUGGESTED THAT A NATIONAL EFTS APPEARS TO BE A DISTINCT POSSIBILITY IN THE FUTURE, ONE TO WHICH BOTH THE GOVERNMENT AND INDUSTRY HAVE MADE A COMMITMENT. BECAUSE OF AN AWARENESS OF THE POTENTIAL PROBLEMS ASSOCIATED WITH SUCH A SYSTEM, TIME WILL BE REQUIRED TO DEVELOP LEGISLATION ON SECURITY PROCEDURES TO ALLEVIATE THEM. NOTES ARE INCLUDED. (JAP)