ATM

1. ATM By: Group 20 -Corey Funk -Lingjia Xiao -Stephanie Ng

2. What is an ATM? • Automated Teller Machine • computerized telecommunications device that provides the clients of a financial institution with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller. • Other Names: Automatic Banking Machine, Cash Machine etc.

3. Who invented the first ATM? • Many people have tried to claim themselves as the “inventor of the ATM” • From Sweden, the United States, and the United Kingdom • Luther George Simjian • Don Wetzel • John Shepherd-Barron • James Goodfellow • John D. White • Jairus Larson

4. Who invented the first ATM? (cont’d) • Luther George Simjian • Idea came first in late 1930 • Registered 20 patents in 1939 • Not-so-successful • Don Wetzel • American engineer • Designed Docuteller machine in 1968 • Hold USA patent to the ATM in 1973

5. Who invented the first ATM? (cont’d) • John Shepherd-Barron • Indian Born Scottish • Idea of 24/7 cash dispenser • First ATM in England in 1967 • James Goodfellow • Development engineer • Design accepted a machine readable encrypted card, to which he added a numerical keypad • Covered by UK Patent in 1966

6. Who invented the first ATM? (cont’d) • John D. White • Started work in 1968 • First ATM at Rockville Centre, LI in 1973 • “Credit Card Automatic Currency Dispenser” Patented in 1973 • Design similar to the free standing ATM nowadays • Jairus Larson • First on-line ATM in 1970’s • Able to communicate with the bank’s computer system

7. Who invented the first ATM? Summary • Who invented the idea of an ATM? • Luther George Simjian • Who invented the ATM as we know it? • James Goodfellow in Scotland • Who invented the free standing ATM design we recognize today? • John D. White in the US For more information: http://www.atmmachine.com/atm-inventor.html

8. Where was the first ATM installed?

9. Where was the first ATM installed? • In 1967, John Shepherd-Barron invented and installed an ATM in a Barclays Bank in London. Don Wetzel invented an American made ATM in 1968. • In 1969 Docutel installed its Docuteller machine at New York's Chemical Bank - This is the first use of magnetically encoded plastic.

10. How did early machines work in comparison to the banking machines we use today?

11. Hardware

12. Hardware (cont’d) • A block diagram of an ATM • An ATM is typically made up of the following devices: • CPU (to control the user interface and transaction devices) • Magnetic and/or Chip card reader (to identify the customer) • PIN Pad (similar in layout to a Touch tone or Calculator keypad), often manufactured as part of a secure enclosure. • Secure cryptoprocessor, generally within a secure enclosure. • Display (used by the customer for performing the transaction) • Function key buttons (usually close to the display) or a Touchscreen (used to select the various aspects of the transaction) • Record Printer (to provide the customer with a record of their transaction) • Vault (to store the parts of the machinery requiring restricted access) • Housing (for aesthetics and to attach signage to)

13. Business owners often lease ATM terminals from ATM service providers • Two Loomis employees refilling an ATM at the Downtown • Seattle REI

14. The vault of an ATM is within the footprint of the device itself and is where items of value are kept. Scrip cash dispensers do not incorporate a vault. • Mechanisms found inside the vault may include: • Dispensing mechanism • Deposit mechanism including a Check Processing Module and Bulk Note Acceptor • Security sensors Locks

15. Software • A Suncorp Metway ATM running OS/2 • 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. • Today the vast majority of ATMs worldwide use a Microsoft OS, primarily Windows XP Professional or Windows XP Embedded

16. Software (cont’d) • A Wincor Nixdorf ATM running Windows 2000 • Linux is also finding some reception in the ATM marketplace.

17. Software (cont’d) • 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 XFS ,provides a common API for accessing and manipulating the various devices of an ATM. • J/XFS is a Java implementation of the CEN XFS API.

18. Software (cont’d) • Notable ATM software that operates on XFS platforms include Triton PRISM, Diebold Agilis EmPower, NCR APTRA Edge, Absolute Systems AbsoluteINTERACT, KAL Kalignite, Phoenix Interactive VISTAatm, and so on • With the move of ATMs to industry-standard computing environments, concern has risen about the integrity of the ATM's software stack

19. Security Features • Types of attacks: • Physical attacks • Attacks on consumers

20. Security Features (cont’d) • Physical Attacks • Ram raids: • Break into a property and break open or steal an ATM • Most common physical attack on ATMs • Bolting down portable machines can deter or delay thieves • Alarms developed that trip when machine is moved or tilted • Plofkraak method (using a controlled explosion) • Originated in the Netherlands, Literally means “Blast breaking” • Happens most often in Europe, but has happened in North America • Involves filling the safe with an explosive gas, igniting the gas and blowing the doors off • Newer machines have ventilation system for the safe • Prevents any dangerous gas buildup

21. Security Features (cont’d) • Attaching false parts • Cash dispensing slot can be replaced with one that catches the cash • The customer doesn’t receive the cash • Thief comes by later, and takes the false slot containing customer’s cash • Design the slot so that a false slot would be obvious -False slot fixed to the original card slot. Contains additional card reader to copy your card information and duplicate your card.

22. Security Features (cont’d) • Attacks on consumers • Forced withdrawals • Customer is threatened, forcing them to withdraw money for a thief • Cameras can capture the event happening • Emergency PIN can be activated in such an event, which is usually the customer’s PIN reverse • Identity theft • Skimming devices attached to machine • Captures PIN and card data • Easily blends in with the rest of the machine • Consists of a card reader and a small camera • Sensors are installed in ATMs near the card slot to detect unauthorized readers

23. Security Features (cont’d) • Attacks on consumers (cont’d) • Identity theft (cont’d) • Shoulder surfing • Involves a thief watching a customer enter their personal information, and stealing their card later • Mirrors are installed on some ATMs so the customer can see behind them • Cameras are often installed near or inside ATMs, to use as evidence against cases of Identity theft

24. Security Features (cont’d) • Other security features • Encrypted transmissions to banks • DES or TripleDES encryption • Video surveillance • Cameras near and inside ATM • Consumer awareness • Teach consumers how to look for signs of and prevent identity theft

25. Effects of Online Banking • Online banking has become very common • Easy to set up and use • May decrease some ATM use for bill paying and deposits • Home computers can’t dispense cash • ATMs are often found near retailers or other convenient places

26. Questions?