Automated teller machine
Overview
 
An automated teller machine or automatic teller machine(ATM), also known as a Cashpoint (which is a trademark of Lloyds TSB
Lloyds TSB
Lloyds TSB Bank Plc is a retail bank in the United Kingdom. It was established in 1995 by the merger of Lloyds Bank, established in Birmingham, England in 1765 and traditionally considered one of the Big Four clearing banks, with the TSB Group which traces its origins to 1810...

), cash machine or sometimes a hole in the wall in British English
British English
British English, or English , is the broad term used to distinguish the forms of the English language used in the United Kingdom from forms used elsewhere...

, is a computerised telecommunications device that provides the clients
Customer
A customer is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services...

 of a financial institution
Financial institution
In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries...

 with access to financial transaction
Financial transaction
A financial transaction is an event or condition under the contract between a buyer and a seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals.-History:...

s in a public space without the need for a cashier, human clerk or bank teller
Bank teller
A teller is an employee of a bank who deals directly with most customers. In some places, this employee is known as a cashier. Most teller jobs require cash handling experience and a high school diploma. Most banks provide on the job training....

. ATMs are known by various other names including ATM machine, automated banking machine, and various regional variants derived from trademark
Trademark
A trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or...

s on ATM systems held by particular banks.

Invented by John Shepherd-Barron
John Shepherd-Barron
John Adrian Shepherd-Barron, OBE was a Scottish inventor, who pioneered the development of the cash machine, sometimes referred to as the Automated Teller Machine or ATM.-Early life:...

, the first ATM was introduced in June 1967 at Barclays Bank in Enfield, UK.
Encyclopedia
An automated teller machine or automatic teller machine(ATM), also known as a Cashpoint (which is a trademark of Lloyds TSB
Lloyds TSB
Lloyds TSB Bank Plc is a retail bank in the United Kingdom. It was established in 1995 by the merger of Lloyds Bank, established in Birmingham, England in 1765 and traditionally considered one of the Big Four clearing banks, with the TSB Group which traces its origins to 1810...

), cash machine or sometimes a hole in the wall in British English
British English
British English, or English , is the broad term used to distinguish the forms of the English language used in the United Kingdom from forms used elsewhere...

, is a computerised telecommunications device that provides the clients
Customer
A customer is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services...

 of a financial institution
Financial institution
In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries...

 with access to financial transaction
Financial transaction
A financial transaction is an event or condition under the contract between a buyer and a seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals.-History:...

s in a public space without the need for a cashier, human clerk or bank teller
Bank teller
A teller is an employee of a bank who deals directly with most customers. In some places, this employee is known as a cashier. Most teller jobs require cash handling experience and a high school diploma. Most banks provide on the job training....

. ATMs are known by various other names including ATM machine, automated banking machine, and various regional variants derived from trademark
Trademark
A trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or...

s on ATM systems held by particular banks.

Invented by John Shepherd-Barron
John Shepherd-Barron
John Adrian Shepherd-Barron, OBE was a Scottish inventor, who pioneered the development of the cash machine, sometimes referred to as the Automated Teller Machine or ATM.-Early life:...

, the first ATM was introduced in June 1967 at Barclays Bank in Enfield, UK. On most modern ATMs, the customer is identified by inserting a plastic ATM card
ATM card
An ATM card is a card issued by a bank, credit union or building society that can be used at an ATM for deposits, withdrawals, account information, and other types of transactions, often through interbank networks.Some ATM cards can also be used:* at a branch, as identification for in-person...

 with a magnetic stripe or a plastic smart card
Smart card
A smart card, chip card, or integrated circuit card , is any pocket-sized card with embedded integrated circuits. A smart card or microprocessor cards contain volatile memory and microprocessor components. The card is made of plastic, generally polyvinyl chloride, but sometimes acrylonitrile...

 with a chip
Integrated circuit
An integrated circuit or monolithic integrated circuit is an electronic circuit manufactured by the patterned diffusion of trace elements into the surface of a thin substrate of semiconductor material...

, that contains a unique card number and some security information such as an expiration date or CVVC
Card security code
The card security code , sometimes called Card Verification Data , Card Verification Value , Card Verification Value Code , Card Verification Code , Verification Code , or Card Code Verification are different terms for security features for credit or debit card...

 (CVV). Authentication is provided by the customer entering a personal identification number
Personal identification number
A personal identification number is a secret numeric password shared between a user and a system that can be used to authenticate the user to the system. Typically, the user is required to provide a non-confidential user identifier or token and a confidential PIN to gain access to the system...

 (PIN).

Using an ATM, customers can access their bank account
Deposit account
A deposit account is a current account, savings account, or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the...

s in order to make cash
Cash
In common language cash refers to money in the physical form of currency, such as banknotes and coins.In bookkeeping and finance, cash refers to current assets comprising currency or currency equivalents that can be accessed immediately or near-immediately...

 withdrawals, credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...

 cash advances, and check their account balances as well as purchase prepaid cellphone credit. If the currency being withdrawn from the ATM is different from that which the bank account is denominated in (e.g.: Withdrawing Japanese Yen from a bank account containing US Dollars), the money will be converted at a wholesale exchange rate
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...

. Thus, ATMs often provide the best possible exchange rate for foreign travelers and are heavily used for this purpose as well.

History

The idea of self-service in retail banking developed through independent and simultaneous efforts in Japan, Sweden, the United Kingdom and the United States. In the USA, Luther George Simjian
Luther George Simjian
Luther George Simjian was an Armenian-American inventor of numerous devices and owner of over 200 patents.-Biography:...

 has been credited with developing and building the first cash dispenser machine. There is strong evidence to suggest that Simjian worked on this device before 1959 while his 132nd patent (US3079603) was first filed on 30 June 1960 (and granted 26 February 1963). The rollout of this machine, called Bankograph, was delayed a couple of years. This was due in part to Simjian's Reflectone Electronics Inc. being acquired by Universal Match Corporation. An experimental Bankograph was installed in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...

 in 1961 by the City Bank of New York
Citibank
Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...

, but removed after 6 months due to the lack of customer acceptance. The Bankograph was an automated envelope deposit machine (accepting coins, cash and cheques) and it did not have cash dispensing features.

A first cash dispensing device was used in Tokyo in 1966. Although little is known of this first device, it seems to have been activated with a credit card rather than accessing current account balances. It was followed in 1967 by a machine in Uppsala
Uppsala
- Economy :Today Uppsala is well established in medical research and recognized for its leading position in biotechnology.*Abbott Medical Optics *GE Healthcare*Pfizer *Phadia, an offshoot of Pharmacia*Fresenius*Q-Med...

.

In simultaneous and independent efforts, engineers in Sweden and Britain developed their own cash machines during the early 1960s. The first of these that was put into use was by Barclays Bank in Enfield Town
Enfield Town
Enfield Town is the historic town centre of Enfield, formerly in the county of Middlesex and now in the London Borough of Enfield. It is north north-east of Charing Cross...

 in North London
North London
North London is the northern part of London, England. It is an imprecise description and the area it covers is defined differently for a range of purposes. Common to these definitions is that it includes districts located north of the River Thames and is used in comparison with South...

, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

, on 27 June 1967. This machine was the first in the UK and was used by English comedy actor Reg Varney
Reg Varney
Reginald Alfred "Reg" Varney was an English actor, most notable for his role as Stan Butler in 1970s TV sitcom On the Buses.-Early life:...

, at the time so as to ensure maximum publicity for the machines that were to become mainstream in the UK. This instance of the invention
Invention
An invention is a novel composition, device, or process. An invention may be derived from a pre-existing model or idea, or it could be independently conceived, in which case it may be a radical breakthrough. In addition, there is cultural invention, which is an innovative set of useful social...

 has been credited to John Shepherd-Barron
John Shepherd-Barron
John Adrian Shepherd-Barron, OBE was a Scottish inventor, who pioneered the development of the cash machine, sometimes referred to as the Automated Teller Machine or ATM.-Early life:...

 of printing firm De La Rue
De La Rue
De La Rue plc is a British security printing, papermaking and cash handling systems company headquartered in Basingstoke, Hampshire. It also has a factory on the Team Valley Trading Estate, Gateshead, and other facilities at Loughton, Essex and Bathford, Somerset...

, who was awarded an OBE
Order of the British Empire
The Most Excellent Order of the British Empire is an order of chivalry established on 4 June 1917 by George V of the United Kingdom. The Order comprises five classes in civil and military divisions...

 in the 2005 New Year's Honours List. His design used special cheques that were matched with a personal identification number, as plastic bank cards had not yet been invented.

The Barclays-De La Rue machine (called De La Rue Automatic Cash System or DACS) beat the Swedish saving banks' and a company called Metior's machine (a device called Bankomat) by nine days and Westminster Bank’s
National Westminster Bank
National Westminster Bank Plc, commonly known as NatWest, is the largest retail and commercial bank in the United Kingdom and has been part of The Royal Bank of Scotland Group Plc since 2000. The Royal Bank of Scotland Group is ranked as the second largest bank in the world by assets...

-Smith Industries
Smiths Group
Smiths Group plc is a global engineering company headquartered in London, United Kingdom. It has operations in over 50 countries and employs around 23,550 staff....

-Chubb
Chubb Locks
Chubb Locks is a brand name of the Mul-T-Lock subsidiary of the Assa Abloy Group, which manufactures high security locking systems for residential, secure confinement and commercial applications.-History:...

 system (called Chubb MD2) by a month. The collaboration of a small start-up called Speytec and Midland Bank
Midland Bank
Midland Bank Plc was one of the Big Four banking groups in the United Kingdom for most of the 20th century. It is now part of HSBC. The bank was founded as the Birmingham and Midland Bank in Union Street, Birmingham, England in August 1836...

 developed a third machine which was marketed after 1969 in Europe and the USA by the Burroughs Corporation. The patent for this device (GB1329964) was filed on September 1969 (and granted in 1973) by John David Edwards, Leonard Perkins, John Henry Donald, Peter Lee Chappell, Sean Benjamin Newcombe & Malcom David Roe.

Both the DACS and MD2 accepted only a single-use token or voucher which was retained by the machine while the Speytec worked with a card with a magnetic strip at the back. They used principles including Carbon-14
Radiation
In physics, radiation is a process in which energetic particles or energetic waves travel through a medium or space. There are two distinct types of radiation; ionizing and non-ionizing...

 and
low-coercivity magnetism
Magnetism
Magnetism is a property of materials that respond at an atomic or subatomic level to an applied magnetic field. Ferromagnetism is the strongest and most familiar type of magnetism. It is responsible for the behavior of permanent magnets, which produce their own persistent magnetic fields, as well...

 in order to make fraud more difficult. The idea of a PIN stored on the card was developed by a British
engineer working on the MD2 named James Goodfellow
James Goodfellow
James Goodfellow OBE is a Scottish inventor. He patented Personal Identification Number technology, and is widely acknowledged as the inventor of Automatic Teller Machine technology, although John Shepherd-Barron also had a large part to play in their development.He was a development engineer...

 in 1965 (patent GB1197183 filed on 2 May 1966 with Anthony Davies). The essence of this system was that it enabled the verification of the customer with the debited account without human intervention. This patent is also the earliest instance of a complete “currency dispenser system” in the patent record. This patent was filed on 5 March 1968 in the USA (US 3543904) and granted on 1 December 1970. It had a profound influence on the industry as a whole. Not only did future entrants into the cash dispenser market such as NCR Corporation
NCR Corporation
NCR Corporation is an American technology company specializing in kiosk products for the retail, financial, travel, healthcare, food service, entertainment, gaming and public sector industries. Its main products are self-service kiosks, point-of-sale terminals, automated teller machines, check...

 and IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...

 licence Goodfellow’s PIN system, but a number of later patents reference this patent as “Prior Art Device”.

After looking first hand at the experiences in Europe, in 1968 the networked ATM was pioneered in the US, in Dallas, Texas, by Donald Wetzel
Donald Wetzel
Donald C. Wetzel is an American engineer, known for holding the USA patent to the automatic teller machine.Born in New Orleans, Louisiana he graduated from Jesuit High School and got a...

, who was a department head at an automated baggage-handling company called Docutel. On September 2, 1969, Chemical Bank installed the first ATM in the U.S. at its branch in Rockville Centre, New York
Rockville Centre, New York
Rockville Centre is a village located in Nassau County, New York, in the United States. As of the 2010 census, the village had a total population of 24,023. The town is made up of middle to upper middle class residents, most of the wealthier residents residing on the north side of town near the...

. The first ATMs were designed to dispense a fixed amount of cash when a user inserted a specially coded card. A Chemical Bank advertisement boasted "On Sept. 2 our bank will open at 9:00 and never close again." Chemicals' ATM, initially known as a Docuteller was designed by Donald Wetzel
Donald Wetzel
Donald C. Wetzel is an American engineer, known for holding the USA patent to the automatic teller machine.Born in New Orleans, Louisiana he graduated from Jesuit High School and got a...

 and his company Docutel. Chemical executives were initially hesitant about the electronic banking transition given the high cost of the early machines. Additionally, executives were concerned that customers would resist having machines handling their money. In 1995, the Smithsonian National Museum of American History recognised Docutel and Wetzel as the inventors of the networked ATM.

ATMs first came into use in December 1972 in the UK; the IBM 2984 was designed at the request of Lloyds Bank
Lloyds Bank
Lloyds Bank Plc was a British retail bank which operated in England and Wales from 1765 until its merger into Lloyds TSB in 1995; it remains a registered company but is currently dormant. It expanded during the nineteenth and twentieth centuries and took over a number of smaller banking companies...

. The 2984 CIT (Cash Issuing Terminal) was the first true Cashpoint, similar in function to today's machines; Cashpoint is still a registered trademark of Lloyds TSB in the UK. All were online and issued a variable amount which was immediately deducted from the account. A small number of 2984s were supplied to a US bank. Notable historical models of ATMs include the IBM 3624
IBM 3624
A successor to the IBM 3614, the IBM 3624 was a late 1970s second-generation Automatic teller machine that was designed at the IBM Los Gatos lab. IBM 3624 units, along with the later IBM 4732, were manufactured at IBM facilities in Charlotte, North Carolina and Havant, England until all operations...

 and 473x series, Diebold 10xx
Diebold 10xx
The Diebold 10xx series is a third and fourth generation family of automated teller machines manufactured by Diebold.-History:...

 and TABS 9000 series, NCR 1780 and earlier NCR 770 series.

Location

ATMs are placed not only near or inside the premises of banks, but also in locations such as shopping centers/malls, airports, grocery stores, petrol/gas stations, restaurants, or anywhere frequented by large numbers of people. There are two types of ATM installations: on- and off-premise. On-premise ATMs are typically more advanced, multi-function machines that complement a bank branch's capabilities, and are thus more expensive. Off-premise machines are deployed by financial institutions and Independent Sales Organizations (ISOs) where there is a simple need for cash, so they are generally cheaper mono-function devices. In Canada, 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 or organization owning the ATM and possibly including the list of ATM networks to which that machine is connected.

Financial networks

Most ATMs are connected to interbank network
Interbank network
An interbank network, also known as an ATM consortium or ATM network, is a computer network that connects the ATMs of different banks and permits these ATMs to interact with the ATM cards of non-native banks....

s, enabling people to withdraw and deposit money from machines not belonging to the bank where they have their account or in the country where their accounts are held (enabling cash withdrawals in local currency). Some examples of interbank networks include PULSE
Pulse (interbank network)
PULSE is an interbank electronic funds transfer network in the United States. It serves more than 4,400 U.S. financial institutions and includes more than 380,000 ATMs, as well as POS terminals nationwide...

, PLUS, Cirrus
Cirrus (interbank network)
Cirrus is a worldwide interbank network operated by MasterCard Worldwide, and was founded in 1986. It links MasterCard, Maestro, Diners Club credit, debit and prepaid cards to a network of over 1,000,000 ATMs in 93 countries....

, Interac
Interac
Interac Association is a Canadian organization linking enterprises that have proprietary networks so that they may communicate with each other for the purpose of exchanging electronic financial transactions. The Association was founded in 1984 as a cooperative venture between five financial...

, Interswitch, STAR
STAR (interbank network)
STAR is an interbank network and EFTPOS network in the United States. It is the largest American interbank network, with 250,000 ATMs, 134 million cardholders and over 5,700 participating financial institutions. The network is owned and operated by STAR Networks, a subsidiary company of First Data...

, and LINK
LINK (UK)
LINK is a shared interbank network of automated teller machines operating in the United Kingdom. The network counts 37 member institutions, of which many are various banks and building societies issuing LINK ATM cards, and the remainder are independent ATM operators who do not issue cards...

.

ATMs rely on authorization
Authorization
Authorization is the function of specifying access rights to resources, which is related to information security and computer security in general and to access control in particular. More formally, "to authorize" is to define access policy...

 of a financial transaction
Financial transaction
A financial transaction is an event or condition under the contract between a buyer and a seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals.-History:...

 by the card issuer or other authorizing institution via the communications network. This is often performed through an ISO 8583
ISO 8583
ISO 8583 Financial transaction card originated messages — Interchange message specifications is the International Organization for Standardization standard for systems that exchange electronic transactions made by cardholders using payment cards...

 messaging system.

Many banks charge ATM usage fees
ATM usage fees
ATM usage fees are the fees that many banks and interbank networks charge for the use of their Automated Teller Machines . In some cases, these fees are assessed solely for non-members of the bank; in other cases, they apply to all users...

. In some cases, these fees are charged solely to users who are not customers of the bank where the ATM is installed; in other cases, they apply to all users.

In order to allow a more diverse range of devices to attach to their networks, some interbank networks have passed rules expanding the definition of an ATM to be a terminal that either has the vault within its footprint or utilizes the vault or cash drawer within the merchant establishment, which allows for the use of a scrip cash dispenser
Scrip cash dispenser
A scrip cash dispenser is a computerized telecommunications device that allows a financial institution's customers a secure method of receiving cash in a retail location with the assistance of a cashier.-Usage:...

.

ATMs typically connect directly to their host or ATM Controller
ATMC
An ATMC is a system used in financial institutions to route financial transactions between ATMs, core banking systems and other banks. An ATMC is sometimes referred to as an "EFTPOS Switch."...

 via either ADSL or dial-up modem
Modem
A modem is a device that modulates an analog carrier signal to encode digital information, and also demodulates such a carrier signal to decode the transmitted information. The goal is to produce a signal that can be transmitted easily and decoded to reproduce the original digital data...

 over a telephone
Telephone
The telephone , colloquially referred to as a phone, is a telecommunications device that transmits and receives sounds, usually the human voice. Telephones are a point-to-point communication system whose most basic function is to allow two people separated by large distances to talk to each other...

 line or directly via a leased line. Leased lines are preferable to POTS
Plain old telephone service
Plain old telephone service is the voice-grade telephone service that remains the basic form of residential and small business service connection to the telephone network in many parts of the world....

 lines because they require less time to establish a connection. Leased lines may be comparatively expensive to operate versus a POTS line, meaning less-trafficked machines will usually rely on a dial-up modem. That dilemma may be solved as high-speed Internet VPN connections become more ubiquitous. Common lower-level layer communication protocols used by ATMs to communicate back to the bank include SNA
Systems Network Architecture
Systems Network Architecture is IBM's proprietary networking architecture created in 1974. It is a complete protocol stack for interconnecting computers and their resources. SNA describes the protocol and is, in itself, not actually a program...

 over SDLC
Synchronous Data Link Control
Synchronous Data Link Control is a computer communications protocol. It is the layer 2 protocol for IBM's Systems Network Architecture . SDLC supports multipoint links as well as error correction. It also runs under the assumption that an SNA header is present after the SDLC header...

, TC500 over Async
Asynchronous communication
In telecommunications, asynchronous communication is transmission of data without the use of an external clock signal, where data can be transmitted intermittently rather than in a steady stream. Any timing required to recover data from the communication symbols is encoded within the symbols...

, X.25
X.25
X.25 is an ITU-T standard protocol suite for packet switched wide area network communication. An X.25 WAN consists of packet-switching exchange nodes as the networking hardware, and leased lines, Plain old telephone service connections or ISDN connections as physical links...

, and TCP/IP over Ethernet
Ethernet
Ethernet is a family of computer networking technologies for local area networks commercially introduced in 1980. Standardized in IEEE 802.3, Ethernet has largely replaced competing wired LAN technologies....

.

In addition to methods employed for transaction security and secrecy, all communications traffic between the ATM and the Transaction Processor may also be encrypted via methods such as SSL.

Global use

There are no hard international or government-compiled numbers totaling the complete number of ATMs in use worldwide. Estimates developed by ATMIA place the number of ATMs in use currently at over 2.2 million.

For the purpose of analyzing ATM usage around the world, financial institutions generally divide the world into seven regions, due to the penetration rates, usage statistics, and features deployed. Four regions (USA, Canada, Europe, and Japan) have high numbers of ATMs per million people. Despite the large number of ATMs, there is additional demand for machines in the Asia/Pacific area as well as in Latin America. ATMs have yet to reach high numbers in the Near East/Africa.

The world's most northerly
The world's most northern
This is a list of various northernmost things on earth.- Cities and settlements :See also: Northernmost settlements, Northernmost cities and towns-Geography:-Animals:-General:-Shrubs:-Trees:-Culture and music:-Sport :- Religion :...

 installed ATM is located at Longyearbyen
Longyearbyen
Longyearbyen is the largest settlement and the administrative centre of Svalbard, Norway. It is located on the western coast of Spitsbergen, the largest island of the Svalbard archipelago, on the southern side on Adventfjorden , which continues inland with Adventdalen...

, Svalbard
Svalbard
Svalbard is an archipelago in the Arctic, constituting the northernmost part of Norway. It is located north of mainland Europe, midway between mainland Norway and the North Pole. The group of islands range from 74° to 81° north latitude , and from 10° to 35° east longitude. Spitsbergen is the...

, Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...

.

The world's most southerly
The world's most southern
- Cities and settlements :- Shops and service facilities :-Geography:-Animals:-Plants:-Gardens, zoos and aquaria:- Religion :- Science :- Transportation :- Other :-See also:*List of northernmost items*Extreme points of Earth...

 installed ATM is located at McMurdo Station
McMurdo Station
McMurdo Station is a U.S. Antarctic research center located on the southern tip of Ross Island, which is in the New Zealand-claimed Ross Dependency on the shore of McMurdo Sound in Antarctica. It is operated by the United States through the United States Antarctic Program, a branch of the National...

, Antarctica.

While India claims to have the world's highest installed ATM at Nathu La Pass, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

 installed by the Union Bank of India
Union Bank of India
Union Bank of India is one of India's largest state-owned banks , is listed on the Forbes 2000. It has assets of USD 13.45 billion and all the bank's branches have been networked with its 1135 ATMs. Its online Telebanking facility are available to all its Core Banking Customers - individual as...

 at 4310 meters, there are higher ATMs installed in Nagchu County
Nagchu County
Nagqu County is a county within the Nagchu Prefecture of the Tibet Autonomous Region, western People's Republic of China...

, Tibet
Tibet
Tibet is a plateau region in Asia, north-east of the Himalayas. It is the traditional homeland of the Tibetan people as well as some other ethnic groups such as Monpas, Qiang, and Lhobas, and is now also inhabited by considerable numbers of Han and Hui people...

 at 4500 meters by Agricultural Bank of China
Agricultural Bank of China
Agricultural Bank of China Limited , also known as AgBank, is one of the "Big Four" banks in the People's Republic of China. It was founded in 1951, and has its headquarters in Beijing...

.

Israel has the world's lowest installed ATM at Ein Bokek
Ein Bokek
Ein Bokek is a hotel and resort district on the Israeli shore of the Dead Sea, near Neve Zohar. It is under the jurisdiction of the Tamar Regional Council....

 at the Dead Sea, installed independently by a grocery store at 421 meters below sea level.

While ATMs are ubiquitous on modern cruise ships, ATMs can also be found on some US Navy ships.

Hardware

An ATM is typically made up of the following devices:
  • CPU (to control the user interface and transaction devices)
  • Magnetic
    Magnetic stripe card
    A magnetic stripe card is a type of card capable of storing data by modifying the magnetism of tiny iron-based magnetic particles on a band of magnetic material on the card...

     and/or Chip card reader (to identify the customer)
  • PIN
    Personal identification number
    A personal identification number is a secret numeric password shared between a user and a system that can be used to authenticate the user to the system. Typically, the user is required to provide a non-confidential user identifier or token and a confidential PIN to gain access to the system...

     Pad (similar in layout to a Touch tone or Calculator
    Calculator
    An electronic calculator is a small, portable, usually inexpensive electronic device used to perform the basic operations of arithmetic. Modern calculators are more portable than most computers, though most PDAs are comparable in size to handheld calculators.The first solid-state electronic...

     keypad), often manufactured as part of a secure enclosure.
  • Secure cryptoprocessor
    Secure cryptoprocessor
    A secure cryptoprocessor is a dedicated computer on a chip or microprocessor for carrying out cryptographic operations, embedded in a packaging with multiple physical security measures, which give it a degree of tamper resistance....

    , generally within a secure enclosure.
  • Display (used by the customer for performing the transaction)
  • Function key
    Function key
    A function key is a key on a computer or terminal keyboard which can be programmed so as to cause an operating system command interpreter or application program to perform certain actions...

     buttons (usually close to the display) or a Touchscreen
    Touchscreen
    A touchscreen is an electronic visual display that can detect the presence and location of a touch within the display area. The term generally refers to touching the display of the device with a finger or hand. Touchscreens can also sense other passive objects, such as a stylus...

     (used to select the various aspects of the transaction)

  • Record Printer (to provide the customer with a record of their transaction)
  • Vault
    Bank vault
    A bank vault is a secure space where money, valuables, records, and documents can be stored. It is intended to protect their contents from theft, unauthorized use, fire, natural disasters, and other threats, just like a safe...

     (to store the parts of the machinery requiring restricted access)
  • Housing (for aesthetics and to attach signage to)


Recently, due to heavier computing demands and the falling price of computer-like architectures, ATMs have moved away from custom hardware architectures using microcontroller
Microcontroller
A microcontroller is a small computer on a single integrated circuit containing a processor core, memory, and programmable input/output peripherals. Program memory in the form of NOR flash or OTP ROM is also often included on chip, as well as a typically small amount of RAM...

s and/or application-specific integrated circuit
Application-specific integrated circuit
An application-specific integrated circuit is an integrated circuit customized for a particular use, rather than intended for general-purpose use. For example, a chip designed solely to run a cell phone is an ASIC...

s to adopting the hardware architecture of a personal computer
Personal computer
A personal computer is any general-purpose computer whose size, capabilities, and original sales price make it useful for individuals, and which is intended to be operated directly by an end-user with no intervening computer operator...

, such as, USB connections for peripherals, ethernet and IP communications, and use personal computer operating systems. Although it is undoubtedly cheaper to use commercial off-the-shelf
Commercial off-the-shelf
In the United States, Commercially available Off-The-Shelf is a Federal Acquisition Regulation term defining a nondevelopmental item of supply that is both commercial and sold in substantial quantities in the commercial marketplace, and that can be procured or utilized under government contract...

 hardware, it does make ATMs potentially vulnerable to the same sort of problems exhibited by conventional computers.

Business owners often lease ATM terminals from ATM service providers.

The vault of an ATM is within the footprint of the device itself and is where items of value are kept. Scrip cash dispenser
Scrip cash dispenser
A scrip cash dispenser is a computerized telecommunications device that allows a financial institution's customers a secure method of receiving cash in a retail location with the assistance of a cashier.-Usage:...

s do not incorporate a vault.

Mechanisms found inside the vault may include:
  • Dispensing mechanism (to provide cash
    Cash
    In common language cash refers to money in the physical form of currency, such as banknotes and coins.In bookkeeping and finance, cash refers to current assets comprising currency or currency equivalents that can be accessed immediately or near-immediately...

     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 grade selection include cost, weight, regulatory requirements, ATM type, operator risk avoidance practices, and internal volume requirements. Industry standard vault configurations include Underwriters Laboratories
Underwriters Laboratories
Underwriters Laboratories Inc. is an independent product safety certification organization. Established in 1894, the company has its headquarters in Northbrook, Illinois. UL develops standards and test procedures for products, materials, components, assemblies, tools and equipment, chiefly dealing...

 UL-291 "Business Hours" and Level 1 Safes, RAL TL-30 derivatives, and CEN EN 1143-1 - CEN III and CEN IV.

ATM manufacturers recommend that vaults be attached to the floor to prevent theft.

Software

With the migration to commodity PC hardware, standard commercial "off-the-shelf" operating systems and programming environments can be used inside of ATMs. Typical platforms previously used in ATM development include RMX or OS/2
OS/2
OS/2 is a computer operating system, initially created by Microsoft and IBM, then later developed by IBM exclusively. The name stands for "Operating System/2," because it was introduced as part of the same generation change release as IBM's "Personal System/2 " line of second-generation personal...

. Today the vast majority of ATMs worldwide use a Microsoft
Microsoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...

 OS, primarily Windows XP Professional or Windows XP Embedded.

A small number of deployments may still be running older versions such as Windows NT
Windows NT
Windows NT is a family of operating systems produced by Microsoft, the first version of which was released in July 1993. It was a powerful high-level-language-based, processor-independent, multiprocessing, multiuser operating system with features comparable to Unix. It was intended to complement...

, Windows CE
Windows CE
Microsoft Windows CE is an operating system developed by Microsoft for embedded systems. Windows CE is a distinct operating system and kernel, rather than a trimmed-down version of desktop Windows...

 or Windows 2000
Windows 2000
Windows 2000 is a line of operating systems produced by Microsoft for use on personal computers, business desktops, laptops, and servers. Windows 2000 was released to manufacturing on 15 December 1999 and launched to retail on 17 February 2000. It is the successor to Windows NT 4.0, and is the...

. There is a computer industry security view or consensus that desktop operating systems have greater risks as operating systems for cash dispensing machines than other types of operating systems like (secure) real-time operating system
Real-time operating system
A real-time operating system is an operating system intended to serve real-time application requests.A key characteristic of a RTOS is the level of its consistency concerning the amount of time it takes to accept and complete an application's task; the variability is jitter...

s (RTOS). RISKS Digest
RISKS Digest
The RISKS Digest or Forum On Risks to the Public in Computers and Related Systems is an online periodical published since 1985 by the Committee on Computers and Public Policy of the Association for Computing Machinery. The editor is Peter G. Neumann....

 has many articles about cash machine operating system vulnerabilities.

Linux
Linux
Linux is a Unix-like computer operating system assembled under the model of free and open source software development and distribution. The defining component of any Linux system is the Linux kernel, an operating system kernel first released October 5, 1991 by Linus Torvalds...

 is also finding some reception in the ATM marketplace. An example of this is Banrisul
Banrisul
Banrisul is the largest bank in Southern Brazil and operates primarily in the state of Rio Grande do Sul , with a network that serves 364 cities . The services, however, are extended to other localities of Brazil...

, the largest bank in the south of Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...

, which has replaced the MS-DOS
MS-DOS
MS-DOS is an operating system for x86-based personal computers. It was the most commonly used member of the DOS family of operating systems, and was the main operating system for IBM PC compatible personal computers during the 1980s to the mid 1990s, until it was gradually superseded by operating...

 operating systems in its ATMs with Linux. Banco do Brasil
Banco do Brasil
Banco do Brasil S.A. is the largest Brazilian and Latin American bank by assets, and the third by market value. The bank, headquartered in Brasília, was founded in 1808 and is the oldest active bank in Brazil — and one of the oldest financial institutions in the world.Banco do Brasil is controlled...

 is also migrating ATMs to Linux.

Common application layer transaction protocols, such as Diebold
Diebold
Diebold, Inc. is a United States-based security systems corporation that is engaged primarily in the sale, manufacture, installation and service of self-service transaction systems , electronic and physical security products , and software and integrated systems for global financial and...

 91x (911 or 912) and NCR
NCR Corporation
NCR Corporation is an American technology company specializing in kiosk products for the retail, financial, travel, healthcare, food service, entertainment, gaming and public sector industries. Its main products are self-service kiosks, point-of-sale terminals, automated teller machines, check...

 NDC or NDC+
NCR Corporation
NCR Corporation is an American technology company specializing in kiosk products for the retail, financial, travel, healthcare, food service, entertainment, gaming and public sector industries. Its main products are self-service kiosks, point-of-sale terminals, automated teller machines, check...

 provide emulation
Hardware emulation
In integrated circuit design, hardware emulation is the process of imitating the behavior of one or more pieces of hardware with another piece of hardware, typically a special purpose emulation system. The emulation model is usually based on RTL source code, which is compiled into the format...

 of older generations of hardware on newer platforms with incremental extensions made over time to address new capabilities, although companies like NCR continuously improve these protocols issuing newer versions (e.g. NCR's AANDC v3.x.y, where x.y are subversions). Most major ATM manufacturers provide software packages that implement these protocols. Newer protocols such as IFX
Interactive Financial Exchange
Interactive Financial Exchange is an XML specification for financial transactions such as bill presentment and payment, business to business and consumer to business banking , payments and automated teller machine communications.It is being developed and maintained by a consortium of individuals...

 have yet to find wide acceptance by transaction processors.

With the move to a more standardized software base, financial institutions have been increasingly interested in the ability to pick and choose the application programs that drive their equipment. WOSA/XFS, now known as CEN XFS (or simply XFS)
CEN/XFS
CEN/XFS or XFS provides a client-server architecture for financial applications on the Microsoft Windows platform, especially peripheral devices such as EFTPOS terminals and ATMs which are unique to the financial industry...

, provides a common API for accessing and manipulating the various devices of an ATM. J/XFS
J/XFS
J/XFS is an alternative API to CEN/XFS and also to Xpeak . J/XFS is written in Java with the objective to provide a platform agnostic client-server architecture for financial applications, especially peripheral devices such as EFTPOS terminals and ATMs which are unique to the financial...

 is a Java implementation of the CEN XFS API.

While the perceived benefit of XFS is similar to the Java's "Write once, run anywhere" mantra, often different ATM hardware vendors have different interpretations of the XFS standard. The result of these differences in interpretation means that ATM applications typically use a middleware
Middleware
Middleware is computer software that connects software components or people and their applications. The software consists of a set of services that allows multiple processes running on one or more machines to interact...

 to even out the differences between various platforms.

With the onset of Windows operating systems and XFS on ATM's, the software applications have the ability to become more intelligent. This has created a new breed of ATM applications commonly referred to as programmable applications. These types of applications allows for an entirely new host of applications in which the ATM terminal can do more than only communicate with the ATM switch. It is now empowered to connected to other content servers and video banking
Video banking
Video banking is a term used for performing banking transactions or professional banking consultations via a remote video connection. Video banking can be performed via purpose built banking transaction machines , or via a videoconference enabled bank branch.- Types of Video Banking :Today, video...

 systems.

Notable ATM software that operates on XFS platforms include Triton PRISM, Diebold
Diebold
Diebold, Inc. is a United States-based security systems corporation that is engaged primarily in the sale, manufacture, installation and service of self-service transaction systems , electronic and physical security products , and software and integrated systems for global financial and...

 Agilis EmPower, NCR
NCR Corporation
NCR Corporation is an American technology company specializing in kiosk products for the retail, financial, travel, healthcare, food service, entertainment, gaming and public sector industries. Its main products are self-service kiosks, point-of-sale terminals, automated teller machines, check...

 APTRA Edge
NCR Corporation
NCR Corporation is an American technology company specializing in kiosk products for the retail, financial, travel, healthcare, food service, entertainment, gaming and public sector industries. Its main products are self-service kiosks, point-of-sale terminals, automated teller machines, check...

, Absolute Systems AbsoluteINTERACT, KAL Kalignite, Phoenix Interactive VISTAatm, and Wincor Nixdorf
Wincor Nixdorf
Wincor Nixdorf is a German corporation that provides retail and retail banking hardware, software, and services. Wincor Nixdorf is engaged primarily in the sale, manufacture, installation and service of self-service transaction systems , retail banking equipment, lottery terminals, postal...

 ProTopas
Wincor Nixdorf
Wincor Nixdorf is a German corporation that provides retail and retail banking hardware, software, and services. Wincor Nixdorf is engaged primarily in the sale, manufacture, installation and service of self-service transaction systems , retail banking equipment, lottery terminals, postal...

.

With the move of ATMs to industry-standard computing environments, concern has risen about the integrity of the ATM's software stack.

Security

Security
Security
Security is the degree of protection against danger, damage, loss, and crime. Security as a form of protection are structures and processes that provide or improve security as a condition. The Institute for Security and Open Methodologies in the OSSTMM 3 defines security as "a form of protection...

, as it relates to ATMs, has several dimensions. ATMs also provide a practical demonstration of a number of security systems and concepts operating together and how various security concerns are dealt with.

Physical

Early ATM security focused on making the ATMs invulnerable to physical attack; they were effectively safes with dispenser mechanisms. A number of attacks on ATMs resulted, with thieves attempting to steal entire ATMs by ram-raiding
Ram-raiding
Ram-raiding is a variation on burglary in which a van, SUV, car, or other heavy vehicle is driven through the windows or doors of a closed shop, usually a department store or jewellers shop, to allow the perpetrators to loot it....

. Since late 1990s, criminal groups operating in Japan improved ram-raiding by stealing and using a truck loaded with a heavy construction machinery to effectively demolish or uproot an entire ATM and any housing to steal its cash.

Another attack method, plofkraak, is to seal all openings of the ATM with silicone
Silicone
Silicones are inert, synthetic compounds with a variety of forms and uses. Typically heat-resistant and rubber-like, they are used in sealants, adhesives, lubricants, medical applications , cookware, and insulation....

 and fill the vault with a combustible gas or to place an explosive inside, attached, or near the ATM. This gas or explosive is ignited and the vault is opened or distorted by the force of the resulting explosion and the criminals can break in. This type of theft has occurred in the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...

, Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...

, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

, Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...

, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

 and Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

. This type of attacks can be prevented by a number of gas explosion prevention devices also known as gas suppression system. These systems use explosive gas detection sensor to detect explosive gas and to neutralize it by releasing a special explosion suppression chemical which changes the composition of the explosive gas and renders it ineffective.

Modern ATM physical security, per other modern money-handling security, concentrates on denying the use of the money inside the machine to a thief, by using different types of Intelligent Banknote Neutralisation Systems
Intelligent banknote neutralisation system
Intelligent Banknote Neutralisation System is a security system which protects valuables against unauthorised access to its contents by rendering it unusable by marking all the cash as stolen by a degradation agent when an attempted attack on the system is detected.Well neutralised banknotes...

.

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 in cassettes, which will dye the money if incorrectly opened.
----

Transactional secrecy and integrity

The 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 system
Trusted system
In the security engineering subspecialty of computer science, a trusted system is a system that is relied upon to a specified extent to enforce a specified security policy...

s".

Encryption of personal information, required by law in many jurisdictions, is used to prevent fraud. Sensitive data in ATM transactions are usually encrypted
Encryption
In cryptography, encryption is the process of transforming information using an algorithm to make it unreadable to anyone except those possessing special knowledge, usually referred to as a key. The result of the process is encrypted information...

 with DES
Data Encryption Standard
The Data Encryption Standard is a block cipher that uses shared secret encryption. It was selected by the National Bureau of Standards as an official Federal Information Processing Standard for the United States in 1976 and which has subsequently enjoyed widespread use internationally. It is...

, but transaction processors now usually require the use of Triple DES
Triple DES
In cryptography, Triple DES is the common name for the Triple Data Encryption Algorithm block cipher, which applies the Data Encryption Standard cipher algorithm three times to each data block....

. Remote Key Loading techniques may be used to ensure the secrecy of the initialization of the encryption keys in the ATM. Message Authentication Code
Message authentication code
In cryptography, a message authentication code is a short piece of information used to authenticate a message.A MAC algorithm, sometimes called a keyed hash function, accepts as input a secret key and an arbitrary-length message to be authenticated, and outputs a MAC...

 (MAC) or Partial MAC may also be used to ensure messages have not been tampered with while in transit between the ATM and the financial network.

Customer identity integrity

There have also been a number of incidents of fraud by Man-in-the-middle attack
Man-in-the-middle attack
In cryptography, the man-in-the-middle attack , bucket-brigade attack, or sometimes Janus attack, is a form of active eavesdropping in which the attacker makes independent connections with the victims and relays messages between them, making them believe that they are talking directly to each other...

s, where criminals have attached fake keypads or card readers to existing machines. These have then been used to record customers' PINs and bank card information in order to gain unauthorized access to their accounts. Various ATM manufacturers have put in place countermeasures to protect the equipment they manufacture from these threats.

Alternate methods to verify cardholder identities have been tested and deployed in some countries, such as finger and palm vein patterns, iris
Iris recognition
Iris recognition is an automated method of biometric identification that uses mathematical pattern-recognition techniques on video images of the irides of an individual's eyes, whose complex random patterns are unique and can be seen from some distance....

, and facial recognition
Facial recognition system
A facial recognition system is a computer application for automatically identifying or verifying a person from a digital image or a video frame from a video source...

 technologies. However, recently, cheaper mass production equipment has been developed and is being installed in machines globally that detect the presence of foreign objects on the front of ATMs, current tests have shown 99% detection success for all types of skimming devices.

Device operation integrity

Openings on the customer-side of ATMs are often covered by mechanical shutters to prevent tampering with the mechanisms when they are not in use. Alarm sensors are placed inside the ATM and in ATM servicing areas to alert their operators when doors have been opened by unauthorized personnel.

Rules are usually set by the government or ATM operating body that dictate what happens when integrity systems fail. Depending on the jurisdiction, a bank may or may not be liable when an attempt is made to dispense a customer's money from an ATM and the money either gets outside of the ATM's vault, or was exposed in a non-secure fashion, or they are unable to determine the state of the money after a failed transaction. Bank customers often complain that banks have made it difficult to recover money lost in this way, but this is often complicated by the bank's own internal policies regarding suspicious activities typical of the criminal element.

Customer security

In some countries, multiple security cameras and security guard
Security guard
A security guard is a person who is paid to protect property, assets, or people. Security guards are usually privately and formally employed personnel...

s are a common feature. In the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

, The New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

 State Comptroller's Office has criticized the New York State Department of Banking for not following through on safety inspections of ATMs in high crime areas.

Critics of ATM operators assert that the issue of customer security appears to have been abandoned by the banking industry; it has been suggested that efforts are now more concentrated on deterrent legislation than on solving the problem of forced withdrawals.

At least as far back as July 30, 1986, critics of the industry have called for the adoption of an emergency PIN system for ATMs, where the user is able to send a silent alarm in response to a threat. Legislative efforts to require an emergency PIN system have appeared in Illinois
Illinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...

, Kansas
Kansas
Kansas is a US state located in the Midwestern United States. It is named after the Kansas River which flows through it, which in turn was named after the Kansa Native American tribe, which inhabited the area. The tribe's name is often said to mean "people of the wind" or "people of the south...

 and Georgia
Georgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...

, 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 reverse emergency PIN system. The bill is again resisted by the banking lobby and supported by the police.

In 1998 three towns outside of Cleveland, Ohio, in response to an ATM crime wave, adopted ATM Consumer Security Legislation requiring that a 9-1-1 switch be installed at all outside ATMs within their jurisdiction. Since the passing of these laws 11 years ago, there have been no repeat crimes. In the wake of an ATM Murder in Sharon Hill, Pennsylvania, The City Council 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 often located inside the bank's lobby which may be accessible 24 hours a day. These lobbies have extensive 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 be opened from outside by swiping your bank card against a wall-mounted scanner, allowing the bank to identify who enters the building. Most ATMs will also display on-screen safety warnings and may also be fitted with convex mirrors above the display allowing the user to see what is happening behind them.

Alternative uses

Although ATMs were originally developed as just cash dispensers, they have evolved to include many other bank-related functions. In some countries, especially those which benefit from a fully integrated cross-bank ATM network (e.g.: Multibanco
Multibanco
Multibanco is an interbank network in Portugal owned and operated by Sociedade Interbancaria de Serviços S.A., or SIBS, that links the ATMs of 27 banks in Portugal, totaling 11,208 machines as of October 2006. The bank members of Multibanco control the SIBS...

 in Portugal), ATMs include many functions which are not directly related to the management of one's own bank account, such as:
  • Deposit currency recognition, acceptance, and recycling
  • Paying routine bills, fees, and taxes (utilities, phone bills, social security, legal fees, taxes, etc.)
  • Printing bank statement
    Bank statement
    An account statement or a bank statement is a summary of all financial transactions occurring over a given period of time on a deposit account, a credit card, or any other type of account offered by a financial institution....

    s
  • Updating passbook
    Passbook
    A passbook or bankbook is a paper book used to record bank transactions on a deposit account. Depending on the country or the financial institution, it can be of the dimensions of a chequebook or a passport....

    s
  • Loading monetary value into stored value cards
  • Purchasing
    • Postage stamp
      Postage stamp
      A postage stamp is a small piece of paper that is purchased and displayed on an item of mail as evidence of payment of postage. Typically, stamps are made from special paper, with a national designation and denomination on the face, and a gum adhesive on the reverse side...

      s.
    • Lottery
      Lottery
      A lottery is a form of gambling which involves the drawing of lots for a prize.Lottery is outlawed by some governments, while others endorse it to the extent of organizing a national or state lottery. It is common to find some degree of regulation of lottery by governments...

       tickets
    • Train tickets
    • Concert tickets
    • Movie tickets
    • Shopping mall
      Shopping mall
      A shopping mall, shopping centre, shopping arcade, shopping precinct or simply mall is one or more buildings forming a complex of shops representing merchandisers, with interconnecting walkways enabling visitors to easily walk from unit to unit, along with a parking area — a modern, indoor version...

       gift certificates.
  • Games and promotional features
  • Fastloans
  • CRM at the ATM
  • Donating to charities
  • Cheque Processing Module
  • Adding pre-paid cell phone / mobile phone
    Mobile phone
    A mobile phone is a device which can make and receive telephone calls over a radio link whilst moving around a wide geographic area. It does so by connecting to a cellular network provided by a mobile network operator...

     credit.
  • Paying (in full or partially) the credit balance on a card linked to a specific current account
    Current account
    In economics, the current account is one of the two primary components of the balance of payments, the other being the capital account. The current account is the sum of the balance of trade , net factor income and net transfer payments .The current account balance is one of two major...

    .
  • Transferring money between linked accounts (such as transferring between checking and savings accounts)
  • Gold
    Gold
    Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...

     - "In London
    London
    London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

     last week [in 2011] some smart businessmen launched the country’s
    Great Britain
    Great Britain or Britain is an island situated to the northwest of Continental Europe. It is the ninth largest island in the world, and the largest European island, as well as the largest of the British Isles...

     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."


Increasingly banks are seeking to use the ATM as a sales device to deliver pre approved loans and targeted advertising using products such as ITM (the Intelligent Teller Machine) from Aptra Relate from NCR.
ATMs can also act as an advertising channel for companies to advertise their own products or third-party products and services.

In Canada, ATMs are called guichets automatiques in French
French language
French is a Romance language spoken as a first language in France, the Romandy region in Switzerland, Wallonia and Brussels in Belgium, Monaco, the regions of Quebec and Acadia in Canada, and by various communities elsewhere. Second-language speakers of French are distributed throughout many parts...

 and sometimes "Bank Machines" in English. The Interac
Interac
Interac Association is a Canadian organization linking enterprises that have proprietary networks so that they may communicate with each other for the purpose of exchanging electronic financial transactions. The Association was founded in 1984 as a cooperative venture between five financial...

 shared cash network does not allow for the selling of goods from ATMs due to specific security requirements for PIN entry when buying goods. CIBC machines in Canada, are able to top-up the minutes on certain pay as you go phones.

Manufacturers have demonstrated and have deployed several different technologies on ATMs that have not yet reached worldwide acceptance, such as:
  • Biometrics
    Biometrics
    Biometrics As Jain & Ross point out, "the term biometric authentication is perhaps more appropriate than biometrics since the latter has been historically used in the field of statistics to refer to the analysis of biological data [36]" . consists of methods...

    , where authorization of transactions is based on the scanning of a customer's fingerprint, iris, face, etc. Biometrics on ATMs can be found in Asia.
  • Cheque/Cash Acceptance, where the ATM accepts and recognise cheques and/or currency without using envelopes Expected to grow in importance in the US through Check 21 legislation.
  • Bar code scanning
    Barcode reader
    A barcode reader is an electronic device for reading printed barcodes. Like a flatbed scanner, it consists of a light source, a lens and a light sensor translating optical impulses into electrical ones...

  • On-demand printing of "items of value" (such as movie tickets, traveler's cheque
    Traveler's cheque
    A traveler's cheque is a preprinted, fixed-amount cheque designed to allow the person signing it to make an unconditional payment to someone else as a result of having paid the issuer for that privilege.- Usage :As traveler's cheques can usually be replaced if lost or stolen A traveler's cheque...

    s, etc.)
  • Dispensing additional media (such as phone cards)
  • Co-ordination of ATMs with mobile phones
  • Customer-specific advertising
  • Integration with non-banking equipment

Reliability

Before an ATM is placed in a public place, it typically has undergone extensive testing with both test money
Test Money
Test money are a part of the test apparatus that are often used with currency handling equipment, such as automatic teller machines....

 and the backend computer systems that allow it to perform transactions. Banking customers also have come to expect high reliability in their ATMs, which provides incentives to ATM providers to minimize machine and network failures. Financial consequences of incorrect machine operation also provide high degrees of incentive to minimize malfunctions.

ATMs and the supporting electronic financial networks are generally very reliable, with industry benchmarks typically producing 98.25% customer availability for ATMs and up to 99.999% availability for host systems. If ATMs do go out of service, customers could be left without the ability to make transactions until the beginning of their bank's next time of opening hours.

This said, not all errors are to the detriment of customers; there have been cases of machines giving out money without debiting the account, or giving out higher value notes as a result of incorrect denomination
Denomination (currency)
Denomination is a proper description of a currency amount, usually for coins or banknotes. Denominations may also be used with other means of payment like gift cards. See also Redenomination.-Subunit and super unit:...

 of banknote
Banknote
A banknote is a kind of negotiable instrument, a promissory note made by a bank payable to the bearer on demand, used as money, and in many jurisdictions is legal tender. In addition to coins, banknotes make up the cash or bearer forms of all modern fiat money...

 being loaded in the money cassettes. Errors that can occur may be mechanical
Machine
A machine manages power to accomplish a task, examples include, a mechanical system, a computing system, an electronic system, and a molecular machine. In common usage, the meaning is that of a device having parts that perform or assist in performing any type of work...

 (such as card transport mechanisms; keypads; hard disk failure
Hard disk failure
In computing, a hard-disk failure occurs when a hard disk drive malfunctions and the stored information cannot be accessed with a properly configured computer...

s; envelope deposit mechanisms); software (such as operating system
Operating system
An operating system is a set of programs that manage computer hardware resources and provide common services for application software. The operating system is the most important type of system software in a computer system...

; device driver
Device driver
In computing, a device driver or software driver is a computer program allowing higher-level computer programs to interact with a hardware device....

; application
Application software
Application software, also known as an application or an "app", is computer software designed to help the user to perform specific tasks. Examples include enterprise software, accounting software, office suites, graphics software and media players. Many application programs deal principally with...

); communications
Information transfer
In telecommunications, information transfer is the process of moving messages containing user information from a source to a sink.Note: The information transfer rate may or may not be equal to the transmission modulation rate.-See also:...

; or purely down to operator error.
To aid in reliability, some ATMs print each transaction to a roll paper journal that is stored inside the ATM, which allows both the users of the ATMs and the related financial institutions to settle things based on the records in the journal in case there is a dispute. In some cases, transactions are posted to an electronic journal to remove the cost of supplying journal paper to the ATM and for more convenient searching of data.

Improper money checking can cause the possibility of a customer receiving counterfeit
Counterfeit
To counterfeit means to illegally imitate something. Counterfeit products are often produced with the intent to take advantage of the superior value of the imitated product...

 banknotes from an ATM. While bank personnel are generally trained better at spotting and removing counterfeit cash, the resulting ATM money supplies used by banks provide no guarantee for proper banknotes, as the Federal Criminal Police Office of Germany
Federal Criminal Police Office (Germany)
The Federal Criminal Police Office of Germany is a national investigative police agency in Germany and falls directly under the Federal Ministry of the Interior...

 has confirmed that there are regularly incidents of false banknotes having been dispensed through bank ATMs. Some ATMs may be stocked and wholly owned by outside companies, which can further complicate this problem.
Bill validation technology can be used by ATM providers to help ensure the authenticity of the cash before it is stocked in an ATM; ATMs that have cash recycling capabilities include this capability.

Fraud

As with any device containing objects of value, ATMs and the systems they depend on to function are the targets of fraud. Fraud against ATMs and people's attempts to use them takes several forms.

The first known instance of a fake ATM was installed at a shopping mall in Manchester, Connecticut
Manchester, Connecticut
Manchester is a township and city in Hartford County, Connecticut, United States. As of the 2010 census, the town had a total population of 58,241.- History :...

 in 1993. By modifying the inner workings of a Fujitsu
Fujitsu
is a Japanese multinational information technology equipment and services company headquartered in Tokyo, Japan. It is the world's third-largest IT services provider measured by revenues....

 model 7020 ATM, a criminal gang known as The Bucklands Boys were able to steal information from cards inserted into the machine by customers.

In some cases, bank fraud could occur at ATMs whereby the bank accidentally stocks the ATM with bills in the wrong denomination, therefore giving the customer more money than should be dispensed. The result of receiving too much money may be influenced by the card holder agreement in place between the customer and the bank.

In a variation of this, WAVY-TV
WAVY-TV
WAVY-TV, channel 10, is a television station licensed to Portsmouth, Virginia, serving as the NBC affiliate for the Hampton Roads area . WAVY is owned by LIN Television Corporation, and is a sister station to Fox affiliate WVBT...

 reported an incident in Virginia Beach of September 2006 where a hacker who had probably obtained a factory-default admin password for a gas station's white label ATM caused the unit to assume it was loaded with $5 USD bills instead of $20s, enabling himself—and many subsequent customers—to walk away with four times the money they said they wanted to withdraw. This type of scam was featured on the TV series The Real Hustle
The Real Hustle
The Real Hustle is a BBC television series made by Objective Productions and written by Alexis Conran and Paul Wilson. The show demonstrates confidence and magic tricks, distraction scams and proposition bets performed on members of the public by presenters Conran, Wilson and Jessica-Jane Clement...

.

ATM behavior can change during what is called "stand-in" time, where the bank's cash dispensing network is unable to access databases that contain account information (possibly for database maintenance). In order to give customers access to cash, customers may be allowed to withdraw cash up to a certain amount that may be less than their usual daily withdrawal limit, but may still exceed the amount of available money in their account, which could result in fraud.

Card fraud

In an attempt to prevent criminals from shoulder surfing
Shoulder surfing (computer security)
In computer security, shoulder surfing refers to using direct observation techniques, such as looking over someone's shoulder, to get information...

 the customer's PIN
Personal identification number
A personal identification number is a secret numeric password shared between a user and a system that can be used to authenticate the user to the system. Typically, the user is required to provide a non-confidential user identifier or token and a confidential PIN to gain access to the system...

s, some banks draw privacy areas on the floor.

For a low-tech form of fraud, the easiest is to simply steal a customer's card. A later variant of this approach is to trap the card inside of the ATM's card reader with a device often referred to as a Lebanese loop
Lebanese loop
A Lebanese loop is a device used to commit fraud and identity theft by exploiting automated teller machines . Its name comes from its regular use amongst Lebanese financial crime perpetrators, although it has now spread to various other international criminal groups...

. When the customer gets frustrated by not getting the card back and walks away from the machine, the criminal is able to remove the card and withdraw cash from the customer's account.

Another simple form of fraud involves attempting to get the customer's bank to issue a new card and stealing it from their mail.
The concept and various methods of copying the contents of an ATM card's magnetic stripe on to a duplicate card to access other people's financial information was well known in the hacking communities by late 1990.

In 1996 Andrew Stone, a computer security consultant from Hampshire in the UK, was convicted of stealing more than £1 million by pointing high definition video cameras at ATMs 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 being entered. After getting all the information from the videotapes, he was able to produce clone cards which not only allowed him to withdraw the full daily limit for each account, but also allowed him to sidestep withdrawal limits by using multiple copied cards. In court, it was shown that he could withdraw as much as £10,000 per hour by using this method. Stone was sentenced to five years and six months in prison.

By contrast, a newer high-tech method of operating sometimes called card skimming or card cloning involves the installation of a magnetic card reader over the real ATM's card slot and the use of a wireless surveillance camera or a modified digital camera to observe the user's PIN. Card data is then cloned onto a second card and the criminal attempts a standard cash withdrawal. The availability of low-cost commodity wireless cameras and card readers has made it a relatively simple form of fraud, with comparatively low risk to the fraudsters.

In an attempt to stop these practices, countermeasures against card cloning have been developed by the banking industry, in particular by the use of smart card
Smart card
A smart card, chip card, or integrated circuit card , is any pocket-sized card with embedded integrated circuits. A smart card or microprocessor cards contain volatile memory and microprocessor components. The card is made of plastic, generally polyvinyl chloride, but sometimes acrylonitrile...

s which cannot easily be copied or spoofed by unauthenticated devices, and by attempting to make the outside of their ATMs tamper evident
Tamper-evident
Tamper-evident describes a device or process that makes unauthorized access to the protected object easily detected. Seals, markings or other techniques may be tamper indicating.-Tampering:...

. Older chip-card security systems include the French Carte Bleue
Carte Bleue
Carte Bleue is a major debit card payment system operating in France. Unlike Visa Electron or Maestro debit cards, Carte Bleue allows transactions without requiring authorization from the cardholder's bank. In many situations, the card works like a credit card but without fees for the cardholder...

, Visa Cash
Visa Cash
Visa Cash is a smart card electronic cash system owned by VISA.Trialled in various locations Worldwide , the system works via a 'chip' embedded in a bank card, and looks similar to the so-called 'Chip and PIN' cards issued, among other countries, in Europe.The card is 'loaded' with cash via...

, Mondex
Mondex
Mondex is a smart card electronic cash system which was originally developed by National Westminster Bank in the United Kingdom and subsequently sold to MasterCard International. Mondex launched in a number of markets during the 1990s, expanding from an original trial in Swindon, UK to Hong Kong,...

, Blue from American Express and EMV '96 or EMV 3.11. The most actively developed form of smart card security in the industry today is known as EMV 2000 or EMV 4.x.

EMV
EMV
EMV stands for Europay, MasterCard and VISA, a global standard for inter-operation of integrated circuit cards and IC card capable point of sale terminals and automated teller machines , for authenticating credit and debit card transactions.It is a joint effort between Europay, MasterCard and...

 is widely used in the UK (Chip and PIN
Chip and PIN
Chip and PIN is the brandname adopted by the banking industries in the United Kingdom and Ireland for the rollout of the EMV smartcard payment system for credit, debit and ATM cards.- History :...

) and other parts of Europe, but when it is not available in a specific area, ATMs must fallback to using the easy–to–copy magnetic stripe to perform transactions. This fallback behaviour can be exploited. However the fallback option has been removed by several UK banks, meaning if the chip is not read, the transaction will be declined.

In February 2009, a group of criminals used counterfeit ATM cards to steal $9 million from 130 ATMs in 49 cities around the world all within a time period of 30 minutes.

Card cloning and skimming can be detected by the implementation of magnetic card reader heads and firmware that can read a signature embedded in all magnetic stripes during the card production process. This signature known as a "MagnePrint" or "BluPrint" can be used in conjunction with common two factor authentication schemes utilized in ATM, debit/retail point-of-sale and prepaid card applications.

Another ATM fraud issue is ATM card theft which includes credit card trapping and debit card trapping at ATMs. Originating in South America this type of ATM fraud has spread globally. 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 and PIN cards have increased in circulation.

Related devices

A Talking ATM
Talking ATM
A Talking ATM is a type of automated teller machine that provides audible instructions so that persons who cannot read an ATM screen can independently use the machine. All audible information is delivered privately through a standard headphone jack on the face of the machine or a separately...

 is a type of ATM that provides audible instructions so that persons who cannot read an ATM screen can independently use the machine. All audible information is delivered privately through a standard headphone jack on the face of the machine. Alternatively, some banks such as the Nordea
Nordea
Nordea Bank AB is a Stockholm-based financial services group operating in Northern Europe. The bank is the result of the successive mergers and acquisitions of the Swedish, Finnish, Danish and Norwegian banks of Nordbanken, Merita Bank, Unibank and Kreditkassen that took place between 1997 and 2000...

 and Swedbank
Swedbank
Swedbank AB is a leading Nordic-Baltic banking group with 9.5 million retail customers and 534,000 corporate customers in Sweden, Estonia, Latvia, and Lithuania. In Sweden, the group has 377 branches. In the Baltic countries, it has another 224 branches...

 use a built-in external speaker which may be invoked by pressing the talk button on the keypad. Information is delivered to the customer either through pre-recorded sound
Sound
Sound is a mechanical wave that is an oscillation of pressure transmitted through a solid, liquid, or gas, composed of frequencies within the range of hearing and of a level sufficiently strong to be heard, or the sensation stimulated in organs of hearing by such vibrations.-Propagation of...

 files or via text-to-speech speech synthesis
Speech synthesis
Speech synthesis is the artificial production of human speech. A computer system used for this purpose is called a speech synthesizer, and can be implemented in software or hardware...

.

A postal interactive kiosk
Interactive kiosk
An Interactive kiosk is a computer terminal featuring specialized hardware and software designed within a public exhibit that provides access to information and applications for communication, commerce, entertainment, and education....

 may also share many of the same components as an ATM (including a vault), but only dispenses items relating to postage.

A scrip cash dispenser
Scrip cash dispenser
A scrip cash dispenser is a computerized telecommunications device that allows a financial institution's customers a secure method of receiving cash in a retail location with the assistance of a cashier.-Usage:...

 may share many of the same components as an ATM, but lacks the ability to dispense physical cash and consequently requires no vault. Instead, the customer requests a withdrawal transaction from the machine, which prints a receipt. The customer then takes this receipt to a nearby sales clerk, who then exchanges it for cash from the till.

A Teller Assist Unit
Teller assist unit
Teller assist units , also known as automatic teller safes or teller cash dispensers , are devices used in retail banking for the disbursement of money at a Bank teller wicket or a centralized area...

 may also share many of the same components as an ATM (including a vault), but they are distinct in that they are designed to be operated solely by trained personnel 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 overall construction of the unit.

See also

  • Automated cash handling
    Automated cash handling
    Automated cash handling is the process of dispensing, counting and tracking cash in a bank, retail, check cashing, payday loan / advance, casino or other business environment through specially designed hardware and software for the purposes of loss prevention, theft deterrence and reducing...

  • Security of automated teller machines
  • Banknote counter
    Banknote counter
    A banknote counter is a device designed primarily to accurately count a quantity of banknotes. Additionally, a banknote counter may sort banknotes into batches and check for damaged or counterfeit notes.- History :...

  • Cash register
    Cash register
    A cash register or till is a mechanical or electronic device for calculating and recording sales transactions, and an attached cash drawer for storing cash...

  • EFTPOS
    EFTPOS
    EFTPOS is the general term used for debit card based systems used for processing transactions through terminals at points of sale. In Australia and New Zealand it is also the brand name of the specific system used for such payments...

  • Electronic funds transfer
    Electronic funds transfer
    Electronic funds transfer is the electronic exchange or transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems....

  • Financial cryptography
    Financial cryptography
    Financial cryptography is the use of cryptography in applications in which financial loss could result from subversion of the message system.Cryptographers think of the field as originating in the work of Dr David Chaum who invented the blinded signature...

  • Key management
    Key management
    Key management is the provisions made in a cryptography system design that are related to generation, exchange, storage, safeguarding, use, vetting, and replacement of keys. It includes cryptographic protocol design, key servers, user procedures, and other relevant protocols.Key management concerns...

  • List of companies involved with ATMs
  • Payroll
    Payroll
    In a company, payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons...

  • Phantom withdrawal
    Phantom withdrawal
    A phantom withdrawal is a cash withdrawal from an automatic teller machine where money has been withdrawn, and neither the customer nor the bank admit liability....

  • RAS syndrome
    RAS syndrome
    RAS syndrome , also known as PNS syndrome or RAP phrases , refers to the use of one or more of the words that make up an acronym or initialism in conjunction with the abbreviated form, thus in effect repeating one or more words...

  • Verification and validation
    Verification and Validation
    In software project management, software testing, and software engineering, verification and validation is the process of checking that a software system meets specifications and that it fulfills its intended purpose...


Further reading

  • Brain, Marshall Marshall Brain's 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
  • 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


External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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