Human incapacity to respond to computer-generated decisions

Vulnerability of human systems to high-speed computer communications
Shortage of time for human response to high technology systems

Incidence

In 1994 it was reported that in the USA the speed of electronic tax returns on the recently installed computer system of the Internal Revenue Service had resulted in a wave of fraud costing $24 million in 1993. False filing more than doubled in that year. Because refunds had been considerably expedited, there was little time to investigate and block fraudulent requests for refunds.

Claim

Experts now recognize that global financial transactions may be too fast and too complex for senior bank managers to understand. The transition to split-second, electronic systems from manual, paper-based systems has placed the world financial system at risk with the consequent serious implications for world markets. Technological developments have accelerated the rapidity with which payments are made and securities are transferred binding financial markets into a more interdependent mode. To the extent that control is given to computer programmes, there is then increasing potential for destabilization resulting from massive currency transactions.