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  1. 1. Please read: A thank youfrom Wikimedia FoundationExecutive Director Sue GardnerRead nowAutomated teller machineFrom Wikipedia, the free encyclopedia"Cash machine" redirects here. For the Hard-Fi song, see Cash Machine. The examples and perspective in this article deal primarily with United Kingdom and do not represent a worldwide view of the subject. Please improve this article and discuss the issue on the talk page. (November 2011) An editor has expressed a concern that this article lends undue weight to certain ideas, incidents, controversies or matters relative to the article subject as a whole. Please help to create a more balanced presentation. Discuss and resolve this issue before removing this message. (December 2011)An NCR Personas 75-Series interior, multi-function ATM in the United States
  2. 2. Smaller indoor ATMs dispense money inside convenience stores and other busy areas, suchas this off-premise Wincor Nixdorf mono-function ATM in SwedenAn automated teller machine or automatic teller machine (ATM), also known as aCashpoint (which is a trademark of Lloyds TSB), cash machine or sometimes a hole in thewall in British English, is a computerised telecommunications device that provides the clientsof a financial institution with access to financial transactions in a public space without theneed for a cashier, human clerk or bank teller. ATMs are known by various other namesincluding ATM machine, automated banking machine, and various regional variants derivedfrom trademarks on ATM systems held by particular banks.Invented by John Shepherd-Barron, the first ATM was introduced in June 1967 at BarclaysBank in Enfield, UK.[citation needed][dubious – discuss] On most modern ATMs, the customer isidentified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card witha chip, that contains a unique card number and some security information such as anexpiration date or CVVC (CVV). Authentication is provided by the customer entering apersonal identification number (PIN).Using an ATM, customers can access their bank accounts in order to make cash withdrawals,credit card cash advances, and check their account balances as well as purchase prepaidcellphone credit. If the currency being withdrawn from the ATM is different from that whichthe bank account is denominated in (e.g.: Withdrawing Japanese Yen from a bank accountcontaining US Dollars), the money will be converted at a wholesale exchange rate. Thus,ATMs often provide the best possible exchange rate for foreign travelers and are heavily usedfor this purpose as well.[1]Contents[hide] 1 History
  3. 3. 2 Location 3 Financial networks 4 Global use 5 Hardware 6 Software 7 Security o 7.1 Physical o 7.2 Transactional secrecy and integrity o 7.3 Customer identity integrity o 7.4 Device operation integrity o 7.5 Customer security o 7.6 Alternative uses 8 Reliability 9 Fraud o 9.1 Card fraud 10 Related devices 11 See also 12 References 13 Further reading 14 External links[edit] HistoryAn old Nixdorf ATMThe idea of self-service in retail banking developed through independent and simultaneousefforts in Japan, Sweden, the United Kingdom and the United States. In the USA, LutherGeorge Simjian has been credited with developing and building the first cash dispensermachine.[2] There is strong evidence to suggest that Simjian worked on this device before1959 while his 132nd patent (US3079603) was first filed on 30 June 1960 (and granted 26February 1963). The rollout of this machine, called Bankograph, was delayed a couple ofyears. This was due in part to Simjians Reflectone Electronics Inc. being acquired byUniversal Match Corporation.[3] An experimental Bankograph was installed in New YorkCity in 1961 by the City Bank of New York, but removed after 6 months due to the lack of
  4. 4. customer acceptance. The Bankograph was an automated envelope deposit machine(accepting coins, cash and cheques) and it did not have cash dispensing features.[4]A first cash dispensing device was used in Tokyo in 1966.[5][6] Although little is known ofthis first device, it seems to have been activated with a credit card rather than accessingcurrent account balances. It was followed in 1967 by a machine in Uppsala.[7]Reg Varney, first to use a cashpoint in the UKPlaque commemorating installation of worlds first bank cash machineIn simultaneous and independent efforts, engineers in Sweden and Britain developed theirown cash machines during the early 1960s. The first of these that was put into use was byBarclays Bank in Enfield Town in North London, United Kingdom,[8] on 27 June 1967. Thismachine was the first in the UK and was used by English comedy actor Reg Varney, at thetime so as to ensure maximum publicity for the machines that were to become mainstream inthe UK. This instance of the invention has been credited to John Shepherd-Barron of printingfirm De La Rue,[9] who was awarded an OBE in the 2005 New Years Honours List.[10] Hisdesign used special cheques that were matched with a personal identification number, asplastic bank cards had not yet been invented.[11]The Barclays-De La Rue machine (called De La Rue Automatic Cash System or DACS)[12]beat the Swedish saving banks and a company called Metiors machine (a device calledBankomat) by nine days and Westminster Bank‘s-Smith Industries-Chubb system (calledChubb MD2) by a month. The collaboration of a small start-up called Speytec and MidlandBank developed a third machine which was marketed after 1969 in Europe and the USA bythe Burroughs Corporation. The patent for this device (GB1329964) was filed on September1969 (and granted in 1973) by John David Edwards, Leonard Perkins, John Henry Donald,Peter Lee Chappell, Sean Benjamin Newcombe & Malcom David Roe.
  5. 5. Both the DACS and MD2 accepted only a single-use token or voucher which was retained bythe machine while the Speytec worked with a card with a magnetic strip at the back. Theyused principles including Carbon-14 and low-coercivity magnetism in order to make fraudmore difficult. The idea of a PIN stored on the card was developed by a British engineerworking on the MD2 named James Goodfellow in 1965 (patent GB1197183 filed on 2 May1966 with Anthony Davies). The essence of this system was that it enabled the verification ofthe customer with the debited account without human intervention. This patent is also theearliest instance of a complete ―currency dispenser system‖ in the patent record. This patentwas filed on 5 March 1968 in the USA (US 3543904) and granted on 1 December 1970. Ithad a profound influence on the industry as a whole. Not only did future entrants into thecash dispenser market such as NCR Corporation and IBM licence Goodfellow‘s PIN system,but a number of later patents reference this patent as ―Prior Art Device‖.[13]After looking first hand at the experiences in Europe, in 1968 the networked ATM waspioneered in the US, in Dallas, Texas, by Donald Wetzel, who was a department head at anautomated baggage-handling company called Docutel. Recognized by the United StatesPatent Office for having invented the ATM network are Fred J. Gentile and Jack Wu Chang,under US Patent # 3,833,885. On September 2, 1969, Chemical Bank installed the first ATMin the U.S. at its branch in Rockville Centre, New York. The first ATMs were designed todispense a fixed amount of cash when a user inserted a specially coded card.[14] A ChemicalBank advertisement boasted "On Sept. 2 our bank will open at 9:00 and never closeagain."[15] Chemicals ATM, initially known as a Docuteller was designed by Donald Wetzeland his company Docutel. Chemical executives were initially hesitant about the electronicbanking transition given the high cost of the early machines. Additionally, executives wereconcerned that customers would resist having machines handling their money.[16] In 1995, theSmithsonian National Museum of American History recognised Docutel and Wetzel as theinventors of the networked ATM.[17]ATMs first came into use in December 1972 in the UK; the IBM 2984 was designed at therequest of Lloyds Bank. The 2984 CIT (Cash Issuing Terminal) was the first true Cashpoint,similar in function to todays machines; Cashpoint is still a registered trademark of LloydsTSB in the UK. All were online and issued a variable amount which was immediatelydeducted from the account. A small number of 2984s were supplied to a US bank.Notable[citation needed] historical models of ATMs include the IBM 3624 and 473x series,Diebold 10xx and TABS 9000 series, NCR 1780 and earlier NCR 770 series.[edit] Location This section does not cite any references or sources. Please help improve this section by adding citations to reliable sources. Unsourced material may be challenged and removed. (February 2011)
  6. 6. An ATM Encrypting PIN Pad (EPP) with German markingsATM in Vatican with menu in Latin languageATMs are placed not only near or inside the premises of banks, but also in locations such asshopping centers/malls, airports, grocery stores, petrol/gas stations, restaurants, or anywherefrequented by large numbers of people. There are two types of ATM installations: on- andoff-premise. On-premise ATMs are typically more advanced, multi-function machines thatcomplement a bank branchs capabilities, and are thus more expensive. Off-premise machinesare deployed by financial institutions and Independent Sales Organizations (ISOs) wherethere is a simple need for cash, so they are generally cheaper mono-function devices. InCanada, ABMs not operated by a financial institution are known as "White Label ABMs".In North America banks often have drive-thru lanes providing access to ATMs.Many ATMs have a sign above them, called a topper, indicating the name of the bank ororganization owning the ATM and possibly including the list of ATM networks to which thatmachine is connected.[edit] Financial networksAn ATM in the Netherlands. The logos of a number of interbank networks this ATM isconnected to are shownMost ATMs are connected to interbank networks, enabling people to withdraw and depositmoney from machines not belonging to the bank where they have their account or in thecountry where their accounts are held (enabling cash withdrawals in local currency). Someexamples of interbank networks include PULSE, PLUS, Cirrus, Interac, Interswitch, STAR,and LINK.
  7. 7. ATMs rely on authorization of a financial transaction by the card issuer or other authorizinginstitution via the communications network. This is often performed through an ISO 8583messaging system.Many banks charge ATM usage fees. In some cases, these fees are charged solely to userswho are not customers of the bank where the ATM is installed; in other cases, they apply toall users.In order to allow a more diverse range of devices to attach to their networks, some interbanknetworks have passed rules expanding the definition of an ATM to be a terminal that eitherhas the vault within its footprint or utilizes the vault or cash drawer within the merchantestablishment, which allows for the use of a scrip cash dispenser.A Diebold 1063ix with a dial-up modem visible at the baseATMs typically connect directly to their host or ATM Controller via either ADSL or dial-upmodem over a telephone line or directly via a leased line. Leased lines are preferable toPOTS lines because they require less time to establish a connection. Leased lines may becomparatively expensive to operate versus a POTS line, meaning less-trafficked machineswill usually rely on a dial-up modem. That dilemma may be solved as high-speed InternetVPN connections become more ubiquitous. Common lower-level layer communicationprotocols used by ATMs to communicate back to the bank include SNA over SDLC, TC500over Async, X.25, and TCP/IP over Ethernet.In addition to methods employed for transaction security and secrecy, all communicationstraffic between the ATM and the Transaction Processor may also be encrypted via methodssuch as SSL.[18][edit] Global useThere are no hard international or government-compiled numbers totaling the completenumber of ATMs in use worldwide. Estimates developed by ATMIA place the number ofATMs in use currently at over 2.2 million.[19]For the purpose of analyzing ATM usage around the world, financial institutions generallydivide the world into seven regions, due to the penetration rates, usage statistics, and features
  8. 8. deployed. Four regions (USA, Canada, Europe, and Japan) have high numbers of ATMs permillion people.[20][21] Despite the large number of ATMs, there is additional demand formachines in the Asia/Pacific area as well as in Latin America.[22][23] ATMs have yet to reachhigh numbers in the Near East/Africa.[24]The worlds most northerly installed ATM is located at Longyearbyen, Svalbard,Norway.[citation needed]The worlds most southerly installed ATM is located at McMurdo Station, Antarctica.[25]While India claims to have the worlds highest installed ATM at Nathu La Pass, Indiainstalled by the Union Bank of India at 4310 meters, there are higher ATMs installed inNagchu County, Tibet at 4500 meters by Agricultural Bank of China.[26][27]Israel has the worlds lowest installed ATM at Ein Bokek at the Dead Sea, installedindependently by a grocery store at 421 meters below sea level.[28]While ATMs are ubiquitous on modern cruise ships, ATMs can also be found on some USNavy ships.[29][edit] HardwareA block diagram of an ATMAn ATM is typically made up of the following devices: CPU (to control the user interface and transaction devices) Magnetic and/or Chip card reader (to identify the customer) PIN Pad (similar in layout to a Touch tone or Calculator keypad), often manufactured as part of a secure enclosure. Secure cryptoprocessor, generally within a secure enclosure. Display (used by the customer for performing the transaction) Function key buttons (usually close to the display) or a Touchscreen (used to select the various aspects of the transaction)
  9. 9. Record Printer (to provide the customer with a record of their transaction) Vault (to store the parts of the machinery requiring restricted access) Housing (for aesthetics and to attach signage to)Recently[when?], due to heavier computing demands and the falling price of computer-likearchitectures, ATMs have moved away from custom hardware architectures usingmicrocontrollers and/or application-specific integrated circuits to adopting the hardwarearchitecture of a personal computer, such as, USB connections for peripherals, ethernet andIP communications, and use personal computer operating systems. Although it isundoubtedly cheaper to use commercial off-the-shelf hardware, it does make ATMspotentially vulnerable to the same sort of problems exhibited by conventional computers.Business owners often lease ATM terminals from ATM service providers.Two Loomis employees refilling an ATM at the Downtown Seattle REIThe vault of an ATM is within the footprint of the device itself and is where items of valueare kept. Scrip cash dispensers do not incorporate a vault.Mechanisms found inside the vault may include: Dispensing mechanism (to provide cash or other items of value) Deposit mechanism including a Check Processing Module and Bulk Note Acceptor (to allow the customer to make deposits) Security sensors (Magnetic, Thermal, Seismic, gas) Locks: (to ensure controlled access to the contents of the vault) Journaling systems; many are electronic (a sealed flash memory device based on proprietary standards) or a solid-state device (an actual printer) which accrues all records of activity including access timestamps, number of bills dispensed, etc. - This is considered sensitive data and is secured in similar fashion to the cash as it is a similar liability.ATM vaults are supplied by manufacturers in several grades. Factors influencing vault gradeselection include cost, weight, regulatory requirements, ATM type, operator risk avoidancepractices, and internal volume requirements.[30] Industry standard vault configurations includeUnderwriters Laboratories UL-291 "Business Hours" and Level 1 Safes,[31] RAL TL-30derivatives,[32] and CEN EN 1143-1 - CEN III and CEN IV.[33][34]
  10. 10. ATM manufacturers recommend that vaults be attached to the floor to prevent theft.[35][edit] SoftwareWith the migration to commodity PC hardware, standard commercial "off-the-shelf"operating systems and programming environments can be used inside of ATMs. Typicalplatforms previously used in ATM development include RMX or OS/2. Today the vastmajority of ATMs worldwide use a Microsoft OS, primarily Windows XP Professional orWindows XP Embedded.A small number of deployments may still be running older versions such as Windows NT,Windows CE or Windows 2000. There is a computer industry security view or consensus thatdesktop operating systems have greater risks as operating systems for cash dispensingmachines than other types of operating systems like (secure) real-time operating systems(RTOS). RISKS Digest has many articles about cash machine operating systemvulnerabilities.[36]A Wincor Nixdorf ATM running Windows 2000.Linux is also finding some reception in the ATM marketplace. An example of this isBanrisul, the largest bank in the south of Brazil, which has replaced the MS-DOS operatingsystems in its ATMs with Linux. Banco do Brasil is also migrating ATMs to Linux.Common application layer transaction protocols, such as Diebold 91x (911 or 912) and NCRNDC or NDC+ provide emulation of older generations of hardware on newer platforms withincremental extensions made over time to address new capabilities, although companies likeNCR continuously improve these protocols issuing newer versions (e.g. NCRs AANDCv3.x.y, where x.y are subversions). Most major ATM manufacturers provide softwarepackages that implement these protocols. Newer protocols such as IFX have yet to find wideacceptance by transaction processors.[37]With the move to a more standardized software base, financial institutions have beenincreasingly interested in the ability to pick and choose the application programs that drivetheir equipment. WOSA/XFS, now known as CEN XFS (or simply XFS), provides acommon API for accessing and manipulating the various devices of an ATM. J/XFS is a Javaimplementation of the CEN XFS API.While the perceived benefit of XFS is similar to the Javas "Write once, run anywhere"mantra, often different ATM hardware vendors have different interpretations of the XFS
  11. 11. standard. The result of these differences in interpretation means that ATM applicationstypically use a middleware to even out the differences between various platforms.With the onset of Windows operating systems and XFS on ATMs, the software applicationshave the ability to become more intelligent. This has created a new breed of ATMapplications commonly referred to as programmable applications. These types of applicationsallows for an entirely new host of applications in which the ATM terminal can do more thanonly communicate with the ATM switch. It is now empowered to connected to other contentservers and video banking systems.Notable ATM software that operates on XFS platforms include Triton PRISM, DieboldAgilis EmPower, NCR APTRA Edge, Absolute Systems AbsoluteINTERACT, KALKalignite, Phoenix Interactive VISTAatm, and Wincor Nixdorf ProTopas.With the move of ATMs to industry-standard computing environments, concern has risenabout the integrity of the ATMs software stack.[38][edit] SecuritySecurity, as it relates to ATMs, has several dimensions. ATMs also provide a practicaldemonstration of a number of security systems and concepts operating together and howvarious security concerns are dealt with.[edit] PhysicalA Wincor Nixdorf Procash 2100xe Frontload that was opened with an angle grinderEarly ATM security focused on making the ATMs invulnerable to physical attack; they wereeffectively safes with dispenser mechanisms. A number of attacks on ATMs resulted, withthieves attempting to steal entire ATMs by ram-raiding.[39] Since late 1990s, criminal groupsoperating in Japan improved ram-raiding by stealing and using a truck loaded with a heavyconstruction machinery to effectively demolish or uproot an entire ATM and any housing tosteal its cash.[40]Another attack method, plofkraak, is to seal all openings of the ATM with silicone and fill thevault with a combustible gas or to place an explosive inside, attached, or near the ATM. Thisgas or explosive is ignited and the vault is opened or distorted by the force of the resulting
  12. 12. explosion and the criminals can break in.[41] This type of theft has occurred in theNetherlands, Belgium, France, Denmark, Germany and Australia.[42][43] This type of attackscan be prevented by a number of gas explosion prevention devices also known as gassuppression system. These systems use explosive gas detection sensor to detect explosive gasand to neutralize it by releasing a special explosion suppression chemical which changes thecomposition of the explosive gas and renders it ineffective.Modern ATM physical security, per other modern money-handling security, concentrates ondenying the use of the money inside the machine to a thief, by using different types ofIntelligent Banknote Neutralisation Systems.A common method is to simply rob the staff filling the machine with money. To avoid this,the schedule for filling them is kept secret, varying and random. The money is often kept incassettes, which will dye the money if incorrectly opened.[edit] Transactional secrecy and integrityA Triton brand ATM with a dip style card reader and a triple DES keypadThe security of ATM transactions relies mostly on the integrity of the secure cryptoprocessor:the ATM often uses commodity components that are not considered to be "trusted systems".Encryption of personal information, required by law in many jurisdictions, is used to preventfraud. Sensitive data in ATM transactions are usually encrypted with DES, but transactionprocessors now usually require the use of Triple DES.[44] Remote Key Loading techniquesmay be used to ensure the secrecy of the initialization of the encryption keys in the ATM.Message Authentication Code (MAC) or Partial MAC may also be used to ensure messageshave not been tampered with while in transit between the ATM and the financial network.[edit] Customer identity integrity
  13. 13. A BTMU ATM with a palm scanner (to the right of the screen)There have also been a number of incidents of fraud by Man-in-the-middle attacks, wherecriminals have attached fake keypads or card readers to existing machines. These have thenbeen used to record customers PINs and bank card information in order to gain unauthorizedaccess to their accounts. Various ATM manufacturers have put in place countermeasures toprotect the equipment they manufacture from these threats.[45][46]Alternate methods to verify cardholder identities have been tested and deployed in somecountries, such as finger and palm vein patterns,[47] iris, and facial recognition technologies.However, recently[when?], cheaper mass production equipment has been developed and isbeing installed in machines globally that detect the presence of foreign objects on the front ofATMs, current tests have shown 99% detection success for all types of skimming devices.[48][edit] Device operation integrityATMs that are exposed to the outside must be vandal and weather resistantOpenings on the customer-side of ATMs are often covered by mechanical shutters to preventtampering with the mechanisms when they are not in use. Alarm sensors are placed inside theATM and in ATM servicing areas to alert their operators when doors have been opened byunauthorized personnel.Rules are usually set by the government or ATM operating body that dictate what happenswhen integrity systems fail. Depending on the jurisdiction, a bank may or may not be liablewhen an attempt is made to dispense a customers money from an ATM and the money eithergets outside of the ATMs vault, or was exposed in a non-secure fashion, or they are unable to
  14. 14. determine the state of the money after a failed transaction.[49] Bank customers often complainthat banks have made it difficult to recover money lost in this way, but this is oftencomplicated by the banks own internal policies regarding suspicious activities typical of thecriminal element.[50][edit] Customer securityDunbar Armored ATM Techs watching over ATMs that have been installed in a vanIn some countries, multiple security cameras and security guards are a common feature.[51] Inthe United States, The New York State Comptrollers Office has criticized the New YorkState Department of Banking for not following through on safety inspections of ATMs inhigh crime areas.[52]Critics of ATM operators assert that the issue of customer security appears to have beenabandoned by the banking industry;[53] it has been suggested that efforts are now moreconcentrated on deterrent legislation than on solving the problem of forced withdrawals.[54]At least as far back as July 30, 1986, critics of the industry have called for the adoption of anemergency PIN system for ATMs, where the user is able to send a silent alarm in response toa threat.[55] Legislative efforts to require an emergency PIN system have appeared inIllinois,[56] Kansas[57] and Georgia,[58] but none have succeeded as of yet. In January 2009,Senate Bill 1355 was proposed in the Illinois Senate that revisits the issue of the reverseemergency PIN system.[59] The bill is again resisted by the banking lobby and supported bythe police.[60]In 1998 three towns outside of Cleveland, Ohio, in response to an ATM crime wave, adoptedATM Consumer Security Legislation requiring that a 9-1-1 switch be installed at all outsideATMs within their jurisdiction. Since the passing of these laws 11 years ago, there have beenno repeat crimes. In the wake of an ATM Murder in Sharon Hill, Pennsylvania, The CityCouncil of Sharon Hill passed an ATM Consumer Security Bill as well, with the same result.As of July 2009, ATM Consumer Security Legislation is currently pending in New York,New Jersey, and Washington D.C.In China, many efforts to promote security have been made. On-premises ATMs are oftenlocated inside the banks lobby which may be accessible 24 hours a day. These lobbies haveextensive CCTV coverage, an emergency telephone and a security guard on the premises.Bank lobbies that are not guarded 24 hours a day may also have secure doors that can only beopened from outside by swiping your bank card against a wall-mounted scanner, allowing thebank to identify who enters the building. Most ATMs will also display on-screen safety
  15. 15. warnings and may also be fitted with convex mirrors above the display allowing the user tosee what is happening behind them.[edit] Alternative usesTwo NCR Personas 84 ATMs at a bank in Jersey dispensing two types of pound sterlingbanknotes: Bank of England notes on the left, and States of Jersey notes on the rightAlthough ATMs were originally developed as just cash dispensers, they have evolved toinclude many other bank-related functions. In some countries, especially those which benefitfrom a fully integrated cross-bank ATM network (e.g.: Multibanco in Portugal), ATMsinclude many functions which are not directly related to the management of ones own bankaccount, such as: Deposit currency recognition, acceptance, and recycling[61][62] Paying routine bills, fees, and taxes (utilities, phone bills, social security, legal fees, taxes, etc.) Printing bank statements Updating passbooks Loading monetary value into stored value cards Purchasing o Postage stamps. o Lottery tickets o Train tickets o Concert tickets o Movie tickets o Shopping mall gift certificates. Games and promotional features[63] Fastloans CRM at the ATM Donating to charities[64] Cheque Processing Module Adding pre-paid cell phone / mobile phone credit. Paying (in full or partially) the credit balance on a card linked to a specific current account. Transferring money between linked accounts (such as transferring between checking and savings accounts) Gold - "In London last week [in 2011] some smart businessmen launched the country‘s first gold ATM. Stick in your credit card or some cash, and the machine will swap your plastic or paper money for a small bar of the real stuff."[65]Increasingly banks are seeking to use the ATM as a sales device to deliver pre approved loansand targeted advertising using products such as ITM (the Intelligent Teller Machine) from
  16. 16. Aptra Relate from NCR. ATMs can also act as an advertising channel for companies toadvertise their own products or third-party products and services.[66]In Canada, ATMs are called guichets automatiques in French and sometimes "BankMachines" in English. The Interac shared cash network does not allow for the selling ofgoods from ATMs due to specific security requirements for PIN entry when buying goods.[67]CIBC machines in Canada, are able to top-up the minutes on certain pay as you go phones.A South Korean ATM with mobile bank port and bar code readerManufacturers have demonstrated and have deployed several different technologies on ATMsthat have not yet reached worldwide acceptance, such as: Biometrics, where authorization of transactions is based on the scanning of a customers fingerprint, iris, face, etc. Biometrics on ATMs can be found in Asia.[68][69][70] Cheque/Cash Acceptance, where the ATM accepts and recognise cheques and/or currency without using envelopes[71] Expected to grow in importance in the US through Check 21 legislation. Bar code scanning[72] On-demand printing of "items of value" (such as movie tickets, travelers cheques, etc.) Dispensing additional media (such as phone cards) Co-ordination of ATMs with mobile phones[73] Customer-specific advertising[74] Integration with non-banking equipment[75][76][edit] Reliability
  17. 17. An ATM running Microsoft Windows that has crashedBefore an ATM is placed in a public place, it typically has undergone extensive testing withboth test money and the backend computer systems that allow it to perform transactions.Banking customers also have come to expect high reliability in their ATMs,[77] whichprovides incentives to ATM providers to minimize machine and network failures. Financialconsequences of incorrect machine operation also provide high degrees of incentive tominimize malfunctions.[78]ATMs and the supporting electronic financial networks are generally very reliable, withindustry benchmarks typically producing 98.25% customer availability for ATMs[79] and upto 99.999% availability for host systems. If ATMs do go out of service, customers could beleft without the ability to make transactions until the beginning of their banks next time ofopening hours.This said, not all errors are to the detriment of customers; there have been cases of machinesgiving out money without debiting the account, or giving out higher value notes as a result ofincorrect denomination of banknote being loaded in the money cassettes. Errors that canoccur may be mechanical (such as card transport mechanisms; keypads; hard disk failures;envelope deposit mechanisms); software (such as operating system; device driver;application); communications; or purely down to operator error.An ATM running OS/2 that has crashedTo aid in reliability, some ATMs print each transaction to a roll paper journal that is storedinside the ATM, which allows both the users of the ATMs and the related financialinstitutions to settle things based on the records in the journal in case there is a dispute. Insome cases, transactions are posted to an electronic journal to remove the cost of supplyingjournal paper to the ATM and for more convenient searching of data.
  18. 18. Improper money checking can cause the possibility of a customer receiving counterfeitbanknotes from an ATM. While bank personnel are generally trained better at spotting andremoving counterfeit cash,[80][81] the resulting ATM money supplies used by banks provide noguarantee for proper banknotes, as the Federal Criminal Police Office of Germany hasconfirmed that there are regularly incidents of false banknotes having been dispensed throughbank ATMs.[82] Some ATMs may be stocked and wholly owned by outside companies, whichcan further complicate this problem. Bill validation technology can be used by ATMproviders to help ensure the authenticity of the cash before it is stocked in an ATM; ATMsthat have cash recycling capabilities include this capability.[83][edit] FraudAs with any device containing objects of value, ATMs and the systems they depend on tofunction are the targets of fraud. Fraud against ATMs and peoples attempts to use them takesseveral forms.The first known instance of a fake ATM was installed at a shopping mall in Manchester,Connecticut in 1993. By modifying the inner workings of a Fujitsu model 7020 ATM, acriminal gang known as The Bucklands Boys were able to steal information from cardsinserted into the machine by customers.[84]In some cases, bank fraud could occur at ATMs whereby the bank accidentally stocks theATM with bills in the wrong denomination, therefore giving the customer more money thanshould be dispensed.[85] The result of receiving too much money may be influenced by thecard holder agreement in place between the customer and the bank.[86][87]In a variation of this, WAVY-TV reported an incident in Virginia Beach of September 2006where a hacker who had probably obtained a factory-default admin password for a gasstations white label ATM caused the unit to assume it was loaded with $5 USD bills insteadof $20s, enabling himself—and many subsequent customers—to walk away with four timesthe money they said they wanted to withdraw.[88] This type of scam was featured on the TVseries The Real Hustle.ATM behavior can change during what is called "stand-in" time, where the banks cashdispensing network is unable to access databases that contain account information (possiblyfor database maintenance). In order to give customers access to cash, customers may beallowed to withdraw cash up to a certain amount that may be less than their usual dailywithdrawal limit, but may still exceed the amount of available money in their account, whichcould result in fraud.[89][edit] Card fraud
  19. 19. ATM lineupA big queue at an ATM in Masalli, AzerbaijanIn an attempt to prevent criminals from shoulder surfing the customers PINs, some banksdraw privacy areas on the floor.For a low-tech form of fraud, the easiest is to simply steal a customers card. A later variantof this approach is to trap the card inside of the ATMs card reader with a device oftenreferred to as a Lebanese loop. When the customer gets frustrated by not getting the cardback and walks away from the machine, the criminal is able to remove the card and withdrawcash from the customers account.Another simple form of fraud involves attempting to get the customers bank to issue a newcard and stealing it from their mail.[90]
  20. 20. Some ATMs may put up warning messages to customers to not use them when it detectspossible tamperingThe concept and various methods of copying the contents of an ATM cards magnetic stripeon to a duplicate card to access other peoples financial information was well known in thehacking communities by late 1990.[91]In 1996 Andrew Stone, a computer security consultant from Hampshire in the UK, wasconvicted of stealing more than £1 million by pointing high definition video cameras atATMs from a considerable distance, and by recording the card numbers, expiry dates, etc.from the embossed detail on the ATM cards along with video footage of the PINs beingentered. After getting all the information from the videotapes, he was able to produce clonecards which not only allowed him to withdraw the full daily limit for each account, but alsoallowed him to sidestep withdrawal limits by using multiple copied cards. In court, it wasshown that he could withdraw as much as £10,000 per hour by using this method. Stone wassentenced to five years and six months in prison.[92]By contrast, a newer high-tech method of operating sometimes called card skimming orcard cloning involves the installation of a magnetic card reader over the real ATMs card slotand the use of a wireless surveillance camera or a modified digital camera to observe theusers PIN. Card data is then cloned onto a second card and the criminal attempts a standardcash withdrawal. The availability of low-cost commodity wireless cameras and card readershas made it a relatively simple form of fraud, with comparatively low risk to thefraudsters.[93]In an attempt to stop these practices, countermeasures against card cloning have beendeveloped by the banking industry, in particular by the use of smart cards which cannot easilybe copied or spoofed by unauthenticated devices, and by attempting to make the outside oftheir ATMs tamper evident. Older chip-card security systems include the French Carte Bleue,Visa Cash, Mondex, Blue from American Express[94] and EMV 96 or EMV 3.11. The mostactively developed form of smart card security in the industry today is known as EMV 2000or EMV 4.x.
  21. 21. EMV is widely used in the UK (Chip and PIN) and other parts of Europe, but when it is notavailable in a specific area, ATMs must fallback to using the easy–to–copy magnetic stripe toperform transactions. This fallback behaviour can be exploited.[95] However the fallbackoption has been removed by several UK banks, meaning if the chip is not read, thetransaction will be declined.In February 2009, a group of criminals used counterfeit ATM cards to steal $9 million from130 ATMs in 49 cities around the world all within a time period of 30 minutes.[96]Card cloning and skimming can be detected by the implementation of magnetic card readerheads and firmware that can read a signature embedded in all magnetic stripes during the cardproduction process. This signature known as a "MagnePrint" or "BluPrint" can be used inconjunction with common two factor authentication schemes utilized in ATM, debit/retailpoint-of-sale and prepaid card applications.[citation needed]Another ATM fraud issue is ATM card theft which includes credit card trapping and debitcard trapping at ATMs. Originating in South America this type of ATM fraud has spreadglobally. Although somewhat replaced in terms of volume by ATM skimming incidents, a re-emergence of card trapping has been noticed in regions such as Europe where EMV Chip andPIN cards have increased in circulation.[97][edit] Related devicesA Talking ATM is a type of ATM that provides audible instructions so that persons whocannot read an ATM screen can independently use the machine. All audible information isdelivered privately through a standard headphone jack on the face of the machine.Alternatively, some banks such as the Nordea and Swedbank use a built-in external speakerwhich may be invoked by pressing the talk button on the keypad.[98] Information is deliveredto the customer either through pre-recorded sound files or via text-to-speech speechsynthesis.A postal interactive kiosk may also share many of the same components as an ATM(including a vault), but only dispenses items relating to postage.[99][100]A scrip cash dispenser may share many of the same components as an ATM, but lacks theability to dispense physical cash and consequently requires no vault. Instead, the customerrequests a withdrawal transaction from the machine, which prints a receipt. The customerthen takes this receipt to a nearby sales clerk, who then exchanges it for cash from the till.[101]A Teller Assist Unit may also share many of the same components as an ATM (including avault), but they are distinct in that they are designed to be operated solely by trainedpersonnel and not the general public, they do not integrate directly into interbank networks,and are usually controlled by a computer that is not directly integrated into the overallconstruction of the unit.[edit] See also
  22. 22. A Restaurant advertising its ATM availability Information technology portal Business and Economics portal Numismatics portal Automated cash handling Security of automated teller machines Banknote counter Cash register EFTPOS Electronic funds transfer Financial cryptography Key management List of companies involved with ATMs Payroll Phantom withdrawal RAS syndrome Verification and validation[edit] References 1. ^ Schlichter, Sarah (2007-02-05). "Using ATMs abroad - Travel - Travel Tips -". MSNBC. Retrieved 2011-02-11. 2. ^ "Inventor of the Week: Archive". Retrieved 2011-02-11. 3. ^ Universal Match Maps Acquisition‘, The New York Times, 22 March 1961 4. ^ ‗Machine Accepts Cash Deposits‘, The New York Times, 12 April 1961 5. ^ Fast Machine with a Buck, Pacific Stars and Stripes, p. 7, 14 July 1966 6. ^ ‗Instant Cash via Credit Cards‘, ABA Banking Journal, p. 99, January 1967 7. ^ Ny Teknik: Premiär för pengar ur väggen 8. ^ "Enfields cash gift to the world". BBC London. 27 June 2007. 9. ^ Milligan, Brian (25 June 2007). "The man who invented the cash machine". BBC News. Retrieved 26 April 2010. 10. ^ "ATM inventor honoured". BBC News. 31 December 2004. Retrieved 26 April 2010.
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  26. 26. 98. ^ pepsi says: (2011-01-25). "Why is there braille on drive-up ATM machines?". Zidbits. Retrieved 2011-02-11. 99. ^ "Postal Service Mailing Kiosks Now In Every State". 2004-12-30. Retrieved 2011-02-11. 100. ^ 101. ^ "About Script ATMs: How Do Cashless ATMs Work? - What is Scrip, or Cashless Atm Machines?". Retrieved 2011-02-11.[edit] Further reading Brain, Marshall Marshall Brains More How Stuff Works, John Wiley and Sons Ltd, New York, October 2002, ISBN 0-7645-6711-X Donley, Richard Everything has its price, Fireside Books /Simon & Schuster, New Jersey, March 1995, ISBN 0-671-89559-1 Guile, Bruce R., Quinn, James Brian Managing Innovation Cases from the Services Industries, National Academy Press, Washington (D.C.), January 1988, ISBN 0-309- 03926-6 Hillier, David Money Transmission and the Payments Market, Financial World Publishing, Kent UK, January 2002, ISBN 0-85297-643-7 IESNA Committee Lighting for Automatic Teller Machines, Illuminating Engineering Society of North America, January 1997, ISBN 0-87995-122-2 Ikenson, Ben Patents: Ingenious Inventions How They Work and How They Came to Be, Gina Black Dog & Leventhal Publishers, Inc., April 2004, ISBN 1-57912-367-8 Mcall, Susan Resolution of Banking Disputes, Sweet & Maxwell, Ltd., December 1990, ISBN 0-85121-644-7 Peterson, Kirk Automated Teller Machine as a National Bank under the Federal Law, William S. Hein & Co., Inc., August 1987, ISBN 0-89941-587-3 Schneier, Bruce (January 2004). Secrets and Lies: Digital Security in a Networked World. John Wiley & Sons. ISBN 0471453803. Zotti, Ed Triumph of the Straight Dope, Random House, February 1999, ISBN 0-345- 42008-X The Fraudsters - How Con Artists Steal Your Money (ISBN 978-1-903582-82-4)by Eamon Dillon, published September 2008 by Merlin Publishing[edit] External links Wikimedia Commons has media related to: Automatic teller machines Britain celebrates 40 years of the ATM The Money Machines: An account of U.S. ATM history; By Ellen Florian, Automated teller machine at the Open Directory Project World Map and Chart of Automated Teller Machines per 100,000 Adults by Lebanese-economy-forum, World Bank data [show]
  27. 27. v d eInterbank networks by region [show] v d eCredit, charge, and debit cards [show] v d e IBMView page ratingsRate this pageWhats this?TrustworthyObjectiveCompleteWell-written I am highly knowledgeable about this topic (optional)Categories: Automation Banking terms and equipment Banks 1969 introductions Embedded systems Payment systems Banking technology Commercial machines Log in / create account Article Discussion Read Edit View history
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