ATM: “An employee that never shows up late, never complains, always makes money” TOPIC: Automated Teller Machine (ATM)

Group Members
 Sehrish Naqvi  Nandana Zubair  Ain-ul-fatima  Raza Mustafa 070753 070737 060156 070742

Introduction  History  Technology  Location  Statistics – why so imp?  Mechanism  Integrity  Fraud  Benefits and Risks  Conclusion 

Table of Contents

 ATM stands for Automated teller machine  It is a computerized telecommunications device that provides the clients of a financial institution with access to instant money in a public space without the need for a cashier, human clerk or bank teller.  The customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip that contains a unique card number and some security information, security is ensured by PIN number.

 Customers can access their bank accounts:
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to make cash withdrawals check their account balances purchase cell-phone prepaid credit

 The currency being withdrawn can be converted at a wholesale exchange rate..

 Other names for this best possible exchange rate for foreign travelers:
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Automated Transaction Machine Automated banking machine cash-point (in Britain) money machine bank machine cash machine hole-in-the-wall .

 The idea of self-service in retail banking developed through independent and simultaneous efforts in Japan, Sweden, the United States and the United Kingdom.  In the USA, Luther George Simjian has been wrongly credited with developing and building the first cash dispenser machine.  There is no evidence to suggest that Simjian worked in this device before 1959 while his 132nd patent was first filled in June 30, 1960

 A first cash dispensing device was used in Tokyo in 1966.  ATMs first came into use in December 1972 in the UK .

ATM technology
 ATM technology can be used in the following types of networking environments:

Private workgroup or enterprise networks Large public networks Hybrid combinations of both private and public networks

 ATM technology is rapidly being implemented in these networking environments to enable the seamless interconnection of local area networks (LANs) and wide area networks (WANs).  ATM technology enables the switching and transport of multiple traffic types at comparatively high speeds in a single switching fabric.

ATM Cell Relay Technology
 ATM cell relay technology typically supports multiple traffic types (data, voice, and video) while addressing many of the pressing concerns of users of both public and private networks, such as the following:
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Need for flexibility and diversity of communications applications Need to integrate network services Need to accommodate future network growth/enhancement

 Three major communications technologies are in use in industry and commerce today:
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Data Communication Telecommunication ATM cell relay

 ATM derive from two primary attributes:

ATM supports very high-speed interfaces in a single data transmission and switching fabric. ATM supports the multiplexing traffic types.

 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 any place large numbers of people may gather.

Statistics(why having ATM is better?)
 Increase costumer traffic:
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people do not go to the bank as they used to they look for retail locations like gas stations, convenience stores etc According to recent 7-11 study, ATM customers spend 25% more than non-customers

 Increase costumers spending:

 Decreased credit card fees:

Business with ATMs see a reduction in credit card processing fees of 20% to 30% Average surcharge revenue nationwide is $2.00. $3.00 and higher in certain areas and businesses like bars and nightclubs.

 Surcharge Revenues:

 By adding it all up:
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For example:200 customers/day Industry stats:5-10% will use ATM Increased spending: o Average purchase = $10 o ATM customers will spend $2.50 more o $2.50 X 5 customers = $12.50 o $12.50 per day in increased spending o $12.50 X 30 = $375 per month o $375 X 12 months = $4500 per year

 Decreased credit card fees:
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o $500 in cc processing fees – 25% = $125 saved per month $125 X 12 months = $1500 per year o $2.00 X 5 = $10 per day o $10 X 30 = $300 per month o $300 X 12 = $3600 per year o $4500 increased in spending o $1500 savings in cc processing fees o $3600 in surcharge revenue $9600 in yearly savings and revenue

 Surcharge Revenue:
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 Hard-ware: ATMs have moved away from custom hardware architectures using microcontrollers and/or applicationspecific integrated circuits to adopting the hardware architecture of a personal computer, such as, USB connections for peripherals, Ethernet and IP communications, and use personal computer operating systems.  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:
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Dispensing mechanism Deposit mechanism including a Cheque Processing Module and Bulk Note Acceptor Security sensors Locks Journaling systems; many are electronic or a solidstate device which accrues all records of activity including access timestamps, number of bills dispensed, etc.

 In ATM there are three types of integrity`s process are present:
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Transactional secrecy and integrity Customer identity integrity Device operation integrity

 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 in 1993.

Fraud Cases
 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 on the card holder agreement in place between the customer and the bank.

 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 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.


ATM Benefits
 ATM technology offers the following primary benefits:
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Bandwidth efficiency Scalability Application transparency Networking Advantages

 ATM allows the network to be tailored to the user's needs, rather than forcing the user's applications to fit the network's characteristics.

 ATM affords the following user benefits:
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Provides timely access to network resources Supports message traffic of variable length Provides higher transmission speeds Provides self-routing capabilities for multiple traffic types Supports new data communications and telecommunications applications Offers guaranteed network access for voice and video applications Provides protection mechanisms against network congestion conditions

ATM Risk Factors
 There’s a lot of confusion about the differences between ATM cards, debit cards and credit cards since all three seem to be used interchangeably. Although these three types of cards are similar, there are some fundamental differences that may be the key to understanding just how safe you really are when you make a purchase.

 The primary danger with an ATM only card lies in having your actual card stolen. If that happens, a thief can travel to the closest ATM machine and withdraw the maximum amount allowed from your bank account.  The risk factor increases when ATM only cards are used at non-bank ATMs.

 Debit cards however, pose more complex problems and higher risks. Because you swipe your card at countless retailers, and your information is stored inside of every machine you swipe your card at, you are far more vulnerable to becoming a victim of identity theft.  Credit cards pose their own risks and dangers when it comes to identity theft. Credit card information can be compromised and misused in a similar manner as debit cards. Swiping your card for purchases is what puts you at greatest risk.


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