Presentation on

SECURITY FEATURES OF ATM

ABOUT THE ATM:-

1. An ATM is an electronic device which allows a bank’s customer to make cash withdrawals and check their account balance at any time without the need for a human teller.

2. Many ATMs also allow to deposit cash or cheques, transfer money between their bank accounts .

3. The World’s first ATM was installed in ENFIELD town in the London on June 27, 1967 by Barclays bank .

PARTS OF THE ATM SYSTEM :-

1. Card reader

2. Keypad

3. Speaker

4. Display screen

5. Receipt printer

6. Cash dispenser

7. Deposit slot

8. Screen buttons

HOW ATM WORKS :-

1.The ATM is act as a data terminal. ATM has to connect to or communicate through a host

computer .

2. The host computer in analogous to an Internet service provider (ISP) .

3. The host computer is the gateway through which all the various ATM network becomes available to the user.

4. In ATM system customers authenticate themselves by using a plastic card with a magnetic stripe which is known as “ATM CARD”.

5. The magnetic stripe encodes the customers account number and a numeric password which is known as PIN (Personal Identification Number) .

6. The ATM prompts the user to insert the card.

7. When the card is entered the customer personal identification number (PIN) is requested.

8. The customer inputs his or her PIN.

9. If the card is a valid card which can be processed by the machine then control transfer to next stages and prompts the user to either transfer, deposit or withdrawal of cash.

10. If the number entered incorrectly several times in a row most ATMs will retain the card as a security precaution to prevent an unauthorized users .

11. ATM reads and store customer’s data on a smart card.

NETWORKING CONCEPT :-

1. Most ATMs are connected to authorization of transaction by the card issuer or other authorizing institution via the communication network.

2. Most host computers can support either leased-line or dial-up machines.

3. Leased-line machines connect directly to the host computer through a four-wire, point-to-point dedicated telephone line.

4. Dial-up ATMs connect the host computer through a normal phone line using a modem.

5. The host computer may be owned by a bank or any financial institutions or it may be used by an independent service provider.

HARDWARE AND SOFTWARE :-

1. ATM contain secure crypto-processors, generally within an IBM PC compatible host computer in a secure enclosure .

2. The security of the machine relies mostly on the integrity of the secure crypto-processor.

3. A crypto-processor is a type of processor which

process encrypted datas.

4. ATMs typically connect directly to their ATM transaction processor via a modem over a dedicated telephone line.

5. ATM machines runs with operating systems such as

Windows 2000 and Linux.

6. ATM transactions are usually encrypted with DES.

7. Most ATM are connected to inter-bank network.

GENERAL SECURITY:-

1.Modern ATM physical security concentrate on denying the use of the money inside the machine to a thief or a fraud using some fraud detection

techniques.

2.Another trend in ATM security is the fortified cash dispenser is replaced with nothing more than a paper-tape printer.

3.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 it for cash.

4. 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.

5. By ensuring that you are the real card holder

it can reduce the risk of the frauds.

6. An additional security measure limits the total

amount of ATM withdrawal to some particular amount.

7. This aims to reduce the amount of fraud

withdrawal.

REQUEST PIN

VALIDATE USER

SELECT SERVICEINCORRECT PIN

RE-ENTER PIN

INCORECT PIN

RETURN CARD

TIME OUT

RETURN CARD

INVALID CARD

RETURN CARD

STOLEN CARD

RETAIN CARD

CARD

PIN

CARD PRESENT

USER OK

ACC. NO.S

E

C

U

R

I

T

Y

ACC NO

PIN

To provide security, ATM system follows three different mechanism

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 :

1. The ATM keeps all the information about the user

and user’s account inside the centralized

database. Inside the database all the

information are stored in the form of tables

(objects) which are more secured than the

general file systems.

2.The database also provide locking mechanisms

to maintain safety and security of data.

NETWORK SECURITY :

The ATM network system provides the

following features.

1. Authentication :

The user is the one it claims to be.

2. Confidentiality :

Only authorized users can access the content

of the data.

3. Integrity :

The data is not be altered by the third party

during the transmission.

4. Non-repudiation (refuse to access) :

A user can’t deny the fact that it has accessed

a service or data.

ADDITIONAL FEATURES :

1. Verifications 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 datas are confidential.

3. Strong accountability :

The entity can’t deny the responsibility of its

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 :-

1.Treat your ATM card like cash. Always keep your

card in a safe place.

2. Keep your secret code as secret. Don’t use date

of birth, address ,phone number as your PIN.

3. Take your receipt on every ATM transaction.

Don’t leave it at or near the ATM counter.

4. Report a lost or stolen card at once.

5. ATM users should seek out a machine that is

located in a well-lighted area.

ANY QUESTIONS ?

THANK YOU.