Automated teller machine

INTRODUCTIONS:An automated teller machine (ATM) is a machine permitting a bank's customers to make cash withdrawals and check their account balances at any time and without the need for a human teller in public place. Many ATMs also allow people to deposit cash or cheques, transfer money between their bank accounts or even buy postage stamps.

( Automatic Teller Machine Kiosk)

Services available through an ATM include: Make deposits of cash and checks. Withdraw cash . Transfer money between accounts. Obtain account balance

NAMES:ATMs are known by a wide variety of names, some of which being more common in certain countries than others. Some examples are:

Automated Teller Machine Automated Banking Machine ATM Machine sic Hole-in-the-wall Cash Dispenser Cash Machine Robotic Teller
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Cashpoint (in the United Kingdom) Bancomat or Bankomat (particularly in continental Europe) Geldautomat Germany (Geld = money) Bank machine (in Canada) MAC machine, or MAC, (for Money Access Center)

(particularly on the East coast in the United States, esp. New Jersey and Pennsylvania) HISTORY:A mechanical cash dispenser was developed and built by Luthor George Simjian and installed in 1939 in New York City by the City Bank of New York, but removed after 6 months due to lack of customer acceptance. After that De La Rue developed worlds first electronic ATM which was installed in Enfield Town in the London Borough of Enfield, London on June 27, 1967 by Barclays Bank. This instance of the invention is credited to John

Shepherd-Barron, because he was the chief of the development group, although various other engineers were awarded patents for related technologies at the time.

However, the modern networked ATM was in Dollas, Texas, by Don Witzel in 1968. Wetzel was a department head at an automated baggage-handling company called Docutel. In 1995 the Smithsonians National Museum of American History recognized Docutel and Wetzel as the inventors of the ATM.

In modern ATMs, customers authenticate themselves by using a plastic card with a magnetic stripe, which encodes the customer's account number, and by entering a numeric passcode called a PIN (personal identification number), which may be changed using the machine. Typically, if the number is entered incorrectly several times in a row, most ATMs will retain the card as a security precaution to prevent an unauthorised user from working out the PIN by pure guesswork.

HARDWARE AND SOFTWARE :ATMs contain secure crypto-processors, generally within an IBM PC compatible host computer in a secure enclosure. The security of the machine relies mostly on the integrity of the secure cryptoprocessor: the host software often runs on a commodity operating system. In store ATMs typically connect directly to their ATM Transaction Processor via a modem over a dedicated telephone line, although the move towards Internet connections is under way. Along with the move to the internet, ATMs are moving away from custom circut boards (most of which are based on Intel 8086 Architecture) and into full fledged PCs with commercial operating systems like Windows 2000 and Linux. A good example of that is Banrisul, the largest bank in the South of Brazil, which has replaced the MS-DOS operating systems in its automatic teller machines
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with Linux. Also are used RMX 86, OS/2 and Windows 98 bundled with Java. The newest use Windows XP or Windows XP embedded. PARTS OF THE MACHINE:AN ATM HAS TWO OUTPUT DEVICES:-

CARD READER: - The card reader captures the account

information stored on the magnetic stripe on the back of an ATM/debit or credit card. The host processor uses this information to route the transaction to the cardholders bank.
KEYPAD: - The keypad lets the cardholder tell the bank what

kind of transaction is required (cash withdrawal, balance inquiry, etc.) and for what amount. Also, the bank requires the cardholder's personal identification number (PIN) for verification. Federal law requires that the PIN block be sent to the host processor in encrypted form.
AN ATM FOUR OUTPUT DEVICES:SPEAKER: - The speaker provides the cardholder with

auditory feedback when a key is pressed.

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RECEIPT PRINTER: - The receipt printer provides the cardholder

with a paper receipt of the transaction.

DISPLAY SCREEN: - The display screen prompts the

cardholder through each step of the transaction process. Leased-line machines commonly use a monochrome or color CRT (cathode ray tube) display. Dial-up machines commonly use a monochrome or color LCD.
CASH DISPENSER: - The heart of an ATM is the safe and

cash-dispensing mechanism. The entire bottom portion of most

small ATMs is a safe that contains the cash. The cash-dispensing mechanism has an electric eye that counts each bill as it exits the dispenser. The bill count and all of the information pertaining to a particular transaction is recorded in a journal. The journal information is printed out periodically and a hard copy is maintained by the machine owner for two years. Whenever a cardholder has a dispute about a transaction, he or she can ask for a journal printout showing the transaction, and then contact the host processor. If no one is available to provide the journal printout, the cardholder needs to notify the bank or institution that issued the card and fill out a form that will be faxed to the host processor. It is the host processor's responsibility to resolve the dispute. Besides the electric eye that counts each bill, the cashdispensing mechanism also has a sensor that evaluates the thickness of each bill. If two bills are struck together, then instead of being dispensed to the cardholder they are diverted to a reject bin. The same thing happens with a bill that is excessively worn, torn, or folded. The number of reject bills is also recorded so that the mechanism owner can be aware of the quality of bills that are being
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loaded into the machine. A high reject rate would indicate a problem with the bills or with the dispenser mechanism. NETWORKING:Most ATMs are connected to interbank networks, enabling people to withdraw money from machines not belonging to the bank where they have their account. (Deposits can only be made at machines belonging to the bank that has the account.) This is a convenience, especially for people who are travelling: it is possible to make withdrawals in places where one's bank has no branches, and even to withdraw local currency in a foreign country, often at a better exchange rate than would be available by changing cash.

HOW DO ATM WORK?

INTRODUCTION: An ATM is simply a data terminal with two input and four

output devices. Like any other data terminal, the ATM has to connect to, and communicate through, a host processor. The host processor is analogous to an Internet service provider (ISP) in that it is the gateway through which all the various ATM networks become available to the cardholder (the person wanting cash).

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Most host processors can support either leased-line or dial-up machines. Leased-line machines connect directly to the host processor through a four-wire, point-to-point, and dedicated telephone line. Dial-up ATMs connect to the host processor through a normal phone line using a modem and a toll-free number, or through an Internet service provider using a local access number dialed by modem. Leased-line ATMs are preferred for very high-volume locations because of their thru-put capability, and dial-up ATMs are preferred for retail merchant locations where cost is a greater factor than thru-put. The initial cost for a dial-up machine is less than half that for a leased-line machine. The monthly operating costs for dialup are only a fraction of the costs for leased-line. The host processor may be owned by a bank or financial institution, or it may be owned by an independent service provider. Bank-owned processors normally support only bank-owned machines, whereas the independent processors support merchant-owned machines. ATM CHARGES:-

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Many banks in the USA charge fees for the use of their ATMs by non-depositors, for withdrawals over the network by their own customers, or both; however, in the UK strong public reaction soon persuaded banks not to do this. There is also now a flourishing business in the United States of placing ATMs in grocery stores, malls, and other locations other than banks: some of these machines have signs advertising "low" fees. RELIABILITY:ATMs are generally reliable, but if they do go wrong customers will be left without cash until the following morning or whenever they can get to the bank during opening hours. Of course 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 a higher denomination of note by mistake. Sometims annoying software errors can occur which can appear as a dialog box on the screen which is imposible to close. SECURITY:Early ATM security focused on making the ATMs invulnerable to physical attack; they were effectively safes with
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dispenser mechanisms. A number of attacks on ATMs resulted, with thieves attempting to steal entire ATMs by ram-raiding. Modern ATM physical security concentrates on denying the use of the money inside the machine to a thief, by means of techniques such as dye markers and smoke canisters. This change in emphasis has meant that ATMs are now frequently found free-standing in places like shops, rather than mounted into walls. ATM transactions are usually encrypted with DES but most transaction processors will require the use of the more secure Triple DES by 2005. There are also many "phantom withdrawals" from ATMs, which banks often claim are the result of fraud by customers. Phantom withdrawals are considered to be a problem generated by dishonest insiders by most other observers. Ross Anderson, a leading cryptography researcher, has been involved in investigating many cases of phantom withdrawals, and has been responsible for exposing several errors in bank security. There have also been a number of incidents of fraud where criminals have used fake machines or have installed fake
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keypads or card readers to existing machines. They have used these to record customers' PIN numbers and bank accounts and have then used this information to create fake accounts and steal money from consumers. A bank is always liable when a customer's money is stolen from an ATM, but there have been complaints that banks have made it difficult to recover money lost in this way. GENERAL SECURITY:Modern ATM physical security concentrates on denying the use of the money inside the machine to a thief or a fraud using some fraud detection techniques. Another trend in ATM security is the fortified cash dispenser is replaced with nothing more than a paper-tape printer. The customer request a withdrawal from the machine which dispenses no money but merely prints a receipt. The customer then takes the receipt to a sales clerk and exchange. Some ATM system provides the security that if you withdraw certain amount per day or you deposit ,a prompt on the screen will ask you to enter your birthday and month to confirm your identity. By ensuring that you are the real card holder it can reduce the risk

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of the frauds.

An additional security measure limits the total

amount of ATM withdrawal to some particular amount. This aims to reduce the amount of fraud withdrawal. To provide security, ATM system follows three different mechanisms 1. Time out 2. Invalid card 3. Stolen card Time out :- The customer may fail to enter the PIN within the allowed time limit then the card is returned. Invalid card :- The card is not recognized and it is returned . Stolen card :- The card is recognized as a stolen card and is retained by the machine. DATABASE SECURITY :The ATM keeps all the information about the user and users account inside the centralized database. Inside the database all the information are stored in the form of tables (objects) which are
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more secured than the data.

general file system. The database also

provides locking mechanisms to maintain safety and security of

NETWORK SECURITY :The ATM network system provides the following features.
1. 2.

Authentication :- The user is the one it claims to be. Confidentiality :- On authorized users can access the Integrity :- The data is not be altered by the third party Non-repudiation (refuse to access) :- A user cant deny the

content of the data.

3.

during the transmission.

4.

fact that it has accessed a service or data. ADDITIONAL FEATURES :1. Verification of identity :- Security system is able to establish and verify the claimed identity of any actor in an ATM network. 2. Protection of confidentiality :- Stored and communicate data are confidential.

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3. Strong accountability :responsibility of its

The entity cant deny the

performed action as well as their effects.

4. Alarm reporting :- The security system able to generate alarm notification about certain selected security related events. 5. Audit :- When violations of security happens the system is able to analyze the data relevant to security. 6. Security recovery :- The security system is able to recover from successful or attempted failures of security. PRECAUTIONS TO TAKE:INTRODUCTION:-Many banks recommend that you select your own personal
identification number (PIN). Visa recommends the following PIN tips:

Treat your ATM card like cash. Always keep your card in a Keep your secret code as secret. Dont use date of birth, Don't write down your PIN. If you must write it down, do

safe place. address ,phone number as your PIN. not store it in your wallet or purse.

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Make your PIN a series of letters or numbers that you can

easily remember, but that cannot easily be associated with you personally. Take your receipt on every ATM transaction. Dont leave it at or near the ATM counter. Report a lost or stolen card at once. ATM users should seek out a machine that is located in a

well-lighted area. Visa also recommends the following tips for safe ATM usage:

Store your ATM card in your purse or wallet, in an area where Get your card out BEFORE you approach the ATM. You'll be

it won't get scratched or bent.

more vulnerable to attack if you're standing in front of the ATM, fumbling through your wallet for your card.

Stand directly in front of the ATM keypad when typing in your

PIN. This prevents anyone waiting to use the machine from seeing your personal information.

After your transaction, take your receipt, card and money If you are using a drive-up ATM, get your vehicle as close to

away. Do not stand in front of the machine and count your money.

the machine as possible to prevent anyone from coming up to your

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window. Also make sure that your doors are locked before you drive up to the machine.

Do not leave your car running while using a walk-up ATM.

Take your keys with you and lock the doors before your transaction.

If someone or something makes you uncomfortable, cancel

your transaction and leave the machine immediately. Follow up with your bank to make sure the transaction was cancelled and alert the bank to any suspicious people. Many retail merchants close their store at night. It is strongly recommended that they pull the money out of the machine when they close, just like they do with their cash registers, and leave the door to the security compartment wide open like they do with an empty cash-register drawer. This makes it obvious to any would-be thief that this is not payday. For safety reasons, ATM users should seek out a machine that is located in a well-lighted public place. Federal law requires that only the last four digits of the cardholder's account number be printed on the transaction receipt so that when a receipt is left at the machine location, the account number is secure. However, the entry
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of your four-digit personal identification number (PIN) on the keypad should still be obscured from observation, which can be done by positioning your hand and body in such a way that the PIN entry cannot be recorded by store cameras or store employees. The cardholder's PIN is not recorded in the journal, but the account number is. If you protect your PIN, you protect your account. SOME ATM MANUFACTURERS:Diebold IBM NCR Tidel Triton Wincor Nixdorf

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Your ATM PIN should be a number that you could easily remember, but that would not be readily available to thieves.

NEW INNOVATIONS:Several companies are advertising ATMs for the blind. These machines would be located at kiosks rather than bank drive-thrus. For several years, the keypads at ATMs were equipped with braille for the blind or visually impaired.

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New innovations in this technology will include machines that verbally prompt the customers for their card, their PIN and the type of transaction they would like to make. An ATM is simply a data terminal with two input and four output devices. Like any other data terminal, the ATM has to connect to, and communicate through, a host processor. The host processor is analogous to an Internet Service Provider (ISP) in that it is the gateway through which all the various ATM networks become available to the cardholder ( the person wanting the cash). Most host processors can support either leased-line or dial-up mechanism. Leased-line mechanism connects directly to the host processor through a four-wire, point-to-point, and dedicated telephone line. Dial-up ATMs connect to the host processor through a normal phone line using a modem and a tollfree number, or through an Internet Service Provider using a local access number dialed by modem. Leased-line is preferred for very high-volume locations because of their thru-put capability, and dial-up ATMs are

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preferred for retail merchant locations where cost is a greater factor than thru-put. The initial cost for a dial-up machine is less than half that for a leased line machine. The monthly

operating costs for dial-up are only a fraction of the costs for leased-line. The host processor may be owned by a bank or financial institution, or it may be owned by an independent service provider. Bank-owned processors normally support only bank-owned machines, whereas the independent support merchant-owned machines. processors

CONCLUSION:ATM is now introduced so many bank in almost all in the Globe. The commercial purpose of ATM is now demanding
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all among like students, service man, business man and so general people. Now it also preferred for blind man. Users are saving from danger like stealing money etc. Due to its advantages is more than its disadvantage, the popularity is now increased. From the above thesis, the advanced future of ATM is almost bright.

REFERECES:1.

http://www.google.com http://www.wikipedia.com http://www.ibm.com

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2.

3.

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