An ATM is an electronic device which allows a bank’s customer to make cash withdrawals and check their account balance at any time without the need for a human teller.
2. Many ATMs also allow to deposit cash or cheques, transfer money between their bank accounts .
The World’s first ATM was installed in ENFIELD town in the London on June 27, 1967 by Barclays bank .
PARTS OF THE ATM SYSTEM :-
HOW ATM WORKS :- 1.The ATM is act as a data terminal. ATM has to connect to or communicate through a host computer . 2. The host computer in analogous to an Internet service provider (ISP) . 3. The host computer is the gateway through which all the various ATM network becomes available to the user.
4. In ATM system customers authenticate themselves by using a plastic card with a magnetic stripe which is known as “ ATM CARD”. 5. The magnetic stripe encodes the customers account number and a numeric password which is known as PIN (Personal Identification Number) . 6. The ATM prompts the user to insert the card. 7. When the card is entered the customer personal identification number (PIN) is requested.
8. The customer inputs his or her PIN. 9. If the card is a valid card which can be processed by the machine then control transfer to next stages and prompts the user to either transfer, deposit or withdrawal of cash. 10. If the number entered incorrectly several times in a row most ATMs will retain the card as a security precaution to prevent an unauthorized users . 11. ATM reads and store customer’s data on a smart card.
NETWORKING CONCEPT :-
Most ATMs are connected to authorization of transaction by the card issuer or other authorizing institution via the communication network.
2. Most host computers can support either leased-line or dial-up machines.
3. Leased-line machines connect directly to the host computer through a four-wire, point-to-point dedicated telephone line.
Dial-up ATMs connect the host computer
through a normal phone line using a modem.
5. The host computer may be owned by a bank
or any financial institutions or it may be used by
an independent service provider.
HARDWARE AND SOFTWARE :- 1. ATM contain secure crypto-processors, generally within an IBM PC compatible host computer in a secure enclosure . 2. The security of the machine relies mostly on the integrity of the secure crypto-processor. 3. A crypto-processor is a type of processor which process encrypted datas.
4. ATMs typically connect directly to their ATM transaction processor via a modem over a dedicated telephone line.
ATM machines runs with operating systems such as Windows 2000 and Linux.
6. ATM transactions are usually encrypted with DES.
7. Most ATM are connected to inter-bank network.
GENERAL SECURITY :-
1.Modern ATM physical security concentrate on denying the use of the money inside the machine to a thief or a fraud using some fraud detection
2.Another trend in ATM security is the fortified cash dispenser is replaced with nothing more than a paper-tape printer.
3.The customer request a withdrawal from the machine which dispenses no money but merely prints a receipt. The customer then takes the receipt to a sales clerk and exchange it for cash.
4. Some ATM system provides the security that if
you withdraw certain amount per day or you
deposit ,a prompt on the screen will ask you
to enter your birthday and month to confirm
By ensuring that you are the real card holder
it can reduce the risk of the frauds.
6. An additional security measure limits the total
amount of ATM withdrawal to some particular amount.
7. This aims to reduce the amount of fraud
CARD PIN CARD PRESENT USER OK ACC. NO. S E C U R I T Y ACC NO PIN REQUEST PIN VALIDATE USER SELECT SERVICE INCORRECT PIN RE-ENTER PIN INCORECT PIN RETURN CARD TIME OUT RETURN CARD INVALID CARD RETURN CARD STOLEN CARD RETAIN CARD
To provide security, ATM system follows three different mechanism 1. Time out 2. Invalid card 3. Stolen card Time out :- The customer may fail to enter the PIN within the allowed time limit then the card is returned. Invalid card :- The card is not recognized and it is returned . Stolen card :- The card is recognized as a stolen card and is retained by the machine.
DATABASE SECURITY : 1. The ATM keeps all the information about the user and user’s account inside the centralized database. Inside the database all the information are stored in the form of tables (objects) which are more secured than the general file systems. 2.The database also provide locking mechanisms to maintain safety and security of data.
NETWORK SECURITY : The ATM network system provides the following features. 1. Authentication : The user is the one it claims to be. 2. Confidentiality : Only authorized users can access the content of the data. 3. Integrity : The data is not be altered by the third party during the transmission.
4. Non-repudiation (refuse to access) : A user can’t deny the fact that it has accessed a service or data. ADDITIONAL FEATURES : 1. Verifications of identity : Security system is able to establish and verify the claimed identity of any actor in an ATM network. 2. Protection of confidentiality : Stored and communicate datas are confidential.
3. Strong accountability :
The entity can’t deny the responsibility of its
performed action as well as their effects.
Alarm reporting :
The security system able to generate alarm
notification about certain selected security related
When violations of security happens the system
is able to analyze the data relevant to security.
6. Security recovery : The security system is able to recover from successful or attempted failures of security.
PRECAUTIONS TO TAKE :- 1.Treat your ATM card like cash. Always keep your card in a safe place. 2. Keep your secret code as secret. Don’t use date of birth, address ,phone number as your PIN. 3. Take your receipt on every ATM transaction. Don’t leave it at or near the ATM counter. 4. Report a lost or stolen card at once. 5. ATM users should seek out a machine that is located in a well-lighted area.