ATM
By: Group 20
-Corey Funk
-Lingjia Xiao
-Stephanie Ng
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.
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
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
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
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
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
Where was the first ATM installed?
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.
How did early machines work in
comparison to the banking
machines we use today?
Hardware
Hardware (cont’d)
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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)
Business owners often lease ATM
terminals from ATM service providers
• Two Loomis
employees refilling
an ATM at the
Downtown
Seattle REI
• 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
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
Software (cont’d)
• A Wincor Nixdorf ATM
running Windows 2000
• Linux is also finding some
reception in the ATM
marketplace.
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.
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
Security Features
• Types of attacks:
– Physical attacks
– Attacks on consumers
Security Features (cont’d)
• Physical Attacks
– Ram raids:
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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
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.
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
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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
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
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
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
Questions?