ON A NATIONAL SCALE, STORES AND BUSINESSES ARE USING SMALL BUT SOPHISTICATED MINICOMPUTERS THAT ALLOW OPPORTUNITIES TO SET UP PERSONALIZED CHECKING ACCOUNTS, PERSONAL INFORMATION RETRIEVAL SYSTEMS, AND OTHER TYPES OF SERVICES AND ACTIVITIES. ACCOMPANYING THE USE OF COMPUTERS IS THE PROBLEM OF COMPUTER FRAUD. THE STANFORD RESEARCH INSTITUTE PREDICTS THAT COMPUTER FRAUD MAY REACH $40 BILLION ANNUALLY UNLESS COUNTERMEASURES ARE IMPLEMENTED. IN 1978, THERE IS AN ESTIMATED ANNUAL LOSS OF $3 BILLION DUE TO COMPUTER-AIDED CRIMES. THE PROBLEM OF COMPUTER FRAUD HAS BEEN RECOGNIZED BY THE INTERNATIONAL ASSOCIATION OF CHIEFS OF POLICE, THE LEAA, AND THE U.S. ATTORNEY GENERAL'S OFFICE. THESE ENTITIES ACTIVELY ARE SPONSORING EDUCATIONAL SEMINARS TO UPGRADE LAW ENFORCEMENT IN THIS AREA. OVER 75 PERCENT OF MERCHANDISE IN SUPERMARKETS HAS A UNIVERSAL PRODUCT CODE (UPC) THAT CAN BE READ BY COMPUTER SCANNERS ON AUTOMATIC CASH REGISTERS. MERCHANTS HAVE FOUND THAT THEY CAN SAVE APPROXIMATELY $5,529 PER MONTH WITH UPC SCANNERS. THE USE OF ELECTRONIC FUNDS TRANSFER (EFT) SYSTEMS IS ANOTHER INDICATION THAT WE LIVE IN A COMPUTERIZED AND CASHLESS SOCIETY. MOST EFT SYSTEMS INVOLVE BANK-TO-CUSTOMER COMPUTER TERMINALS LOCATED IN SHOPPING MALLS AND PARKING LOTS. CASH CARDS ARE BEING USED TO PURCHASE MAJOR COMMODITIES, INCLUDING FOOD. IN 1980, IT IS ESTIMATED THAT THERE WILL BE 115,000 MINICOMPUTERS SOLD IN THE UNITED STATES. THE RAPID PROLIFERATION OF MINICOMPUTERS AND THEIR EASE OF OPERATION BY NONSPECIALIST PERSONNEL ARE CREATING A SIGNIFICANT POTENTIAL FOR EMBEZZLEMENT AND FRAUD. THREE MAJOR OFFENSIVE ATTACKS BY LAW ENFORCEMENT OFFICIALS AGAINST COMPUTER FRAUD ARE REPORTED: (1) THE INTERNATIONAL ASSOCIATION OF CHIEFS OF POLICE ACTIVELY IS TEACHING LAW ENFORCEMENT PERSONNEL THEORIES CONCERNING COMPUTERIZED LAW ENFORCEMENT; (2) THE LEAA HAS HELPED FUND AND ORGANIZE THE NATIONAL CENTER ON WHITE COLLAR CRIME LOCATED IN SEATTLE, WASH.; AND (3) THE ATTORNEY GENERAL'S OFFICE HAS ANNOUNCED THE CREATION OF A PROGRAM WITHIN THE LEAA TO COMBAT CRIME AGAINST BUSINESSES. THE DANGER OF COMPUTERIZED DATA WITH REGARD TO THE RIGHT OF PRIVACY IS DISCUSSED ALSO. (DEP)