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RIFT VALLEY UNIVERSTIY GULLALE CUMPAS

TVET PROGRAM TITLE: Accounts and Budget Support Level -III

MODULE TITLE: Maintaining Automatic Teller Machine (ATM) Services

LEARNING OUTCOMES: At the end of this module the trainer will be able to

LO1: Restock and service ATM machines

LO2Replenish and balance cash in ATML

LO3: Maintain security of ATM cash


TABLE OF CONTENTS

LO1: Restock and service ATM machines..............................................................................................3


1.1 Automated teller machine..................................................................................................................3
1.2 Restocking Automatic Teller Machines.............................................................................................5
1.3 How to Start an Automated Teller Machine Business........................................................................7
1.4 What Are the Functions of ATM Machines.......................................................................................8
1.5 How an ATM (automated teller machine) Works..............................................................................9
1.6 Components of an ATM.....................................................................................................................9
1.7 Different Types of ATM counters.....................................................................................................10
1.8 What are the Performance Measures in ATM....................................................................................12
1.9 Benefits & Drawbacks of Using an ATM Card................................................................................13
1.20 How to Check the Account Balance of an ATM Card....................................................................19
LO2. Replenish and balance cash in ATM.............................................................................................20
2.1 ATM cash management....................................................................................................................20
2.2 ATM SWITCHING..........................................................................................................................22
2.3 Transaction Processing…………………………………………………………………………….22
2.4 The cash cycle end-to-end...............................................................................................................24
2.5 ATM replenishment.........................................................................................................................27
2.6 Issues in cash management..............................................................................................................29
LO3.Maintain security of ATM cash....................................................................................................29
3.1 How is an ATM secure……………………………………………………………………………30
3.2 ATM Services and Security..............................................................................................................30
Currency Level Monitoring...................................................................................................................30
10 Tips to Maintain ATM Security.........................................................................................................31
3.3 Internal theft....................................................................................................................................34
3.4 How to Block an ATM Card............................................................................................................35
3.5 How to Replace an ATM Card.........................................................................................................36
3.6 How to Withdraw Money without an ATM Card............................................................................36
3.7 What are the types of ATM..............................................................................................................37
3.9 Security of automated teller machines.............................................................................................38
3.10 ATM Security, Protecting against brute force theft........................................................................40

RIFT VALLEY UNIVERSITY Maintaining Automatic Teller Machine (ATM) Services Page 1
INTRODUCTION
Welcome to the module “Maintain Automatic Teller Machine (ATM) Services”. This learner’s
guide was prepared to help you achieve the required competence in “Accounts and Budget
Support Level III”. This will be the source of information for you to acquire knowledge attitude
and skills in this particular occupation with Minimum super vision or help from your trainer
Summary of Learning Outcomes
After completing this learning guide, you should be able to:
Lo1:- Restock and service ATM machines
Lo2:- Replenish and balance cash in ATM
Lo3:- Maintain security of ATM cash

How to Use this TTLM

 Read through the Learning Guide carefully. It is divided into sections that cover all the
knowledge, skills and attitude that you need.
 Read Information Sheets and complete the Self-Check at the end of Each section to
check your progress
 Read and make sure to Practice the activities in the Operation Sheets. Ask your trainer to
show you the correct way to do things or talk to More experienced person for guidance.
 When you are ready, ask your trainer for institutional assessment and Provide you with
feedback from your performance

LO1. Restock and service ATM machines

1.1 Automated teller machine An automated teller machine or automatic teller machine (ATM,
American, Australian, Singaporean, Indian, Maldivian, HIBERNO and Sri Lankan English), also
known as an automated banking machine (ABM, Canadian
English),cash machine, cash point, cash line, or
colloquially hole in the wall (British and South African
English), is an electronic telecommunications device that
enables the customers of a financial institution to perform
financial transactions, particularly cash withdrawal,
without the need for a human cashier, clerk or bank teller.
On most modern ATMs, the customer is identified by
inserting a plastic ATM card with magnetic stripe a plastic
smart card with a chip that contains a unique card number
and some security information such as an expiration date
or CVVC (CVV). Authentication is provided by the customer entering a personal identification
number (PIN).Using and ATM; customers can access their bank deposit or credit accounts in
order to make a variety of transactions such as cash withdrawals, check balances, or credit
mobile phones. If the currency being withdrawn from the ATM is different from that in which

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the bank account is denominated the money will be converted at an official exchange rate. Thus,
ATMs often provide the best possible exchange rates for foreign travelers, and are widely used
for this purpose. Yet it seems on modern ATMs foreign cash currency is not processed or
possibly rejected when deposited or at least is not originally expected by the machine.

An automatic teller machine or ATM allows a bank customer to conduct their banking
transactions from almost every other ATM machine in the world. Don Wetzel was the co-
patentee and chief conceptualist of the automated teller machine, an idea he thought of while
waiting in line at a Dallas bank. At the time (1968) Wetzel was the Vice President of Product
Planning at Ductal, the company that developed automated baggage-handling equipment. The
other two inventors listed on the patent were Tom Barnes, the chief mechanical engineer and
George Chastain, the electrical engineer. It took five million dollars to develop the ATM. The
concept of the ATM first began in 1968, a working prototype came about in 1969 and Ductal
was issued a patent in 1973. The first working

ATM was installed in a New York based Chemical Bank. (Note; there are different claims to
which bank had the first ATM, here is Don Wetzel's reference: The first voucher based cash
dispensing machine was installed in 1967 by Barclay's Bank in London. Experts, however, do
not consider this an ATM. The first modern day ATM was introduced to consumers in 1969 by
Chemical Bank “No, it wasn't in a lobby; it was actually in the wall of the bank, out on the street.
They put canopy over it to protect it from the rain and the weather of all sorts. Unfortunately
they put the canopy too high and the rain came under it. (Laughing) One time we had water in
the machine and we had to do some extensive repairs. It was a walkup on the outside of the bank.
That was the first one. And it was a cash dispenser only, not a full ATM... We had a cash
dispenser, and then the next version was going to be the total teller (created in 1971), which is
the ATM we all know today -- takes deposits, transfers money from checking to savings, savings
to checking, cash advances to your credit card, takes payments; things like that. So they didn't
want just cash dispenser alone." - Don Wetzel on the first ATM installed at the Rockville Center,
New York Chemical Bank from a NMAH interview.

An electronic banking outlet, which allows customers to complete basic transactions without the
aid of a branch representative or teller there are two primary types of automated teller machines,
or ATMs. The basic units allow the customer to only withdraw cash and receive a report of the
account's balance. The more complex machines will accept deposits, facilitate credit card
payments and report account information. To access the advanced features of the complex units,
you will usually need to be a member of the bank that operates the machine.

ATMs are scattered throughout cities, allowing customers easier access to their accounts.
Anyone with a debit or credit card will be able to access most ATMs. Using a machine operated

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by your bank is usually free, but accessing funds through a unit owned by competing bank will
usually incur a small fee.

Computerized machine that permits bank customers to gain access to their accounts with a
magnetically encoded plastic card and a code number It enables the customers to perform several
banking operations without the help of a teller, such as to withdraw cash, Make deposits, pay
bills, obtain bank statements, effect cash transfers also called automated Banking machine,
automatic till machine, or remote service unit.

1.2 Restocking Automatic Teller Machines

Financial Services Technology Provider replenishes Automatic Teller Machines (ATMs). The
company needed a way to schedule restocking that would take into account customer
withdrawing habits and government cash management regulations. Using IBM ILOG CPLEX,
the leading mathematical software for planning and scheduling, the technology provider created
mathematical model for capturing the variables and constraints for replenishing ATMs.

Hardware
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 or chip card reader
(to identify the customer)
 PIN pad EEP4 (similar in layout to a touch tone or calculator keypad), manufactured as
part of a secure enclosure
 Secure crypto processor, generally within a secure enclosure
 Display (used by the customer for performing the transaction)
 Function key buttons (usually close to the display) or a touch screen(used to select the
various aspects of the transaction)
 Record printer (to provide the customer with a record of the transaction) Vault(to store
the parts of the machinery requiring restricted access)
 Housing (for aesthetics and to attach signage to) Sensors and indicators there is as usual a
controversy.
Who invented the idea of an ATM?

History shows it was Luther George Simian to develop the idea in 1939, though he could not
make a commercial success out of it (see timeline). James Good fellow in Scotland holds a
patent dated of 1966 for a full service ATM. But what about John Shepherd-Barron's machine
installed outside a north London branch of Barclays Bank in 1967 The free standing ATM from
1968? It was Don Wetzel, Tom Barnes, George Chastain, Jack GEBHART, and John D. White
for Ductal in the US. Bank automation started as early as 1939 with the invention of the ATM by
LUTHE RGEORGE SIMJIAN (1905-1997) from Turkish origin. SIMJIAN came up with the
idea of creating a hole-in-the-wall machine that would allow customers to make financial
transactions. The idea met skepticism but he persuaded what is now Citicorp to give it a trial.

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After six months, the bank reported that there was little demand. "It seems the only people using
the machines were a small number of prostitutes and gamblers who didn't want to deal with
tellers face to face," wrote SIMJIAN.

1.3 How to Start an Automated Teller Machine Business Automated teller machines ATMs made
their debut as cash dispensers in the United Kingdom in 1967. At first they occupied bank
lobbies, but now they seem to be everywhere - in convenience stores, service stations,
supermarkets and many more locations. In 2010, ATM Industry Association estimated 1.8
million ATMs to be in use worldwide. Enterprising people are building their own ATM
businesses and finding new places for the machines.
Step 1 Develop a business plan for your business. Writing your plan will force you to work out
issues on paper before committing funds. Pay particular attention to start-up costs for your
ATMs, training, dedicated software, an Internet connection, insurance and a cash restocking
service. While writing the plan, decide whether to become a franchisee or an independent
operator. Decide on your initial locations. Establish your fees.
Step 2 Join an ATM franchise program or decide to become an independent ATM business
owner. If you become a franchisee, you will receive training and certain support services. If you
opt to work independently, you will be able to choose from many providers of services to the
ATM industry.
Step 3 Lease or purchase one or more ATMs. Take the time to review the new and refurbished
machines that are available. The average purchase price of a new machine at the time of
publication was $2,000 to $3,000. The market for machines is competitive, and astute ATM
business owners are often able to negotiate favorable prices. Step 4Obtain locations for your first
one or more machines. The most productive ATM sites are places with relatively high
concentrations of consumers, preferably those who are already spending money, such as
shoppers inside a store. Reach an agreement with the owner of the premises -- for example, for a
share of the fee income or a set monthly fee or combination.
Step 5 Purchase business insurance to protect against loss of ATM cash. ATM Industry
Association offers insurance through its website.

Step 6 Contract for the support services you will need to run your ATM business. Unless you
will receive these services under a franchise agreement, make separate arrangements for support
services. These services include ATM monitoring software that allows you to keep an eye on
your ATMs over the Internet, cash replenishing services, repair services and transaction
processing. Most providers of these services will have a presence on the Internet. Your bank
might be able to recommend a cash-replenishing service provider ISOs - independent sales
organizations - are equipped to process ATM transactions.

Step 7 Install your first machines and set the per-transaction fee. By this time you will have
surveyed the local market for ATM services and will know the prevailing fee structure.

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1.4 What Are the Functions of ATM Machines?
The automatic teller machine (ATM), used by banks and customers for a variety of functions,
was patented in 1939, but failed initially due to limited functionality. Something more similar to
the modern ATM emerged on the streets of London in 1967, introducing a new era of banking
convenience. The functions of ATM machines include:
Withdrawals Perhaps the most common function of the modern ATM, withdrawals are usually
allowed from a user's savings or checking account.
Deposits Similarly, most (but not all) ATMs allow deposits to be made to both checking and
savings accounts. These deposit functions sometimes require cash or checks in envelopes,
although many ATMs allow you to deposit without the use of envelopes.
Balance Inquiries Another common function of the ATM is the ability to check account
balance, for savings or checking, and to print out that balance for future reference.
Account Transfers Account transfer is a popular function for those who carefully manage the
funds in more than one account, and can be used to move funds from one account (for example,
checking account) to another (like a savings account).
Stamp Purchases an increasingly popular function of modern ATMs is the ability to buy stamps.
Although this functionality is not available at all ATMs, its popularity has been sufficient for its
availability to expand.
1.5 How an ATM (automated teller machine) Works

What are automated teller machines? ATM is expanded as Automated Teller Machine.
Automated teller machines are data terminals or tail circuits, that is, instrument that converts user
information into signals and vice versa. Thus, these machines are like transducers that convert
sound signals into electric signals. However, ATM converts the information provided by the
ATM cardholders into signals that can be processed by the host processors. Now, what are host
processors? All data terminals work with the help of host processors. Host processors are nothing
but computers. However, host processor refers to a central or main computer that controls all
other devices connected to it. An ATM is controlled by a host processor. For these machines, the
host processors provide gateway, through which each and every ATM network comes to the
reach of the ATM cardholders. Thus, the host processor acts like an Internet Browser for the
ATM. These host processors might be owned by independent, private service providers or even
by the bank itself. If latter is the case, then it would support only those ATM counters that are
owned by the bank.

1.6 Components of an ATM


An ATM is mainly composed of six devices, among which two are input devices and four are
output devices. The input devices includes a card reader and a keyboard, whereas, the output
devices includes a display screen, cash dispenser, printer and a speaker. However, not in all
ATM counters can we find speakers. Nowadays, the display screens of these machines are made
touch sensitive, which rather helps to make the machine compact by avoiding keypads.

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Input devices of an ATM the input devices of an ATM help its user to provide the 'required
data' to the ATM. This ‘required data' refers to the account information of the user, his/her
personal identification number (PIN) and so on. For this, an ATM has got two major input
devices, namely, a card reader and a keypad.

1. Card Reader: The user of the ATM has got an ATM card with him/her. This card is very
important, as without this card, no transactions can me made via automated teller machines. Each
ATM card possesses a magnetic stripe on its back and this magnetic stripe/magistrate is unique
for a particular ATM card. When swept through the card reader, the card reader uses the
magnetic stripe to read the information stored in it. Thus, the magnetic stripe on the back of
every ATM card helps to identify the user of the card and his/her bank account. However, have
you ever wondered what this magnetic stripe is made of It is made of tiny magnetic particles
adhered to a plastic film. With the help of these tiny particles, of which, each one can act as a
tiny bar magnet, all the information about the ATM cardholders and their bank account is stored
in the ATM card. It is this information that is read by the card readers.

2. Keypad: Keypads are used in ATM counters to allow its user to enter his/her PIN (personal
identification number) when he/she is prompted to. Moreover, keypad helps in increasing the
interaction between the user and the machine. For example, an ATM often asks its user to select
between options like withdrawal of cash or balance inquiry. The keypad helps the user to select
between these options.

Output devices of an ATM the output devices of the ATM include four major devices, which
are listed below.
1. Cash dispenser: The cash dispenser helps in delivering the cash asked by the user to the
same. All automated teller machines invariably possess a safe, which is highly protected. It is in
this safe that the money is stored.
2. Printer: Just like the cash dispenser, each and every ATM possesses a printer. This is to print
receipts after cash withdrawal or at the time of balance inquiry by the user.
3. Display Screen: The display screen helps the user or the ATM card holder to progress through
each step of his/her transaction, whether it is a cash withdrawal or a balance inquiry. It also
prompts the user to enter his/her PIN, and also select between options like withdrawal of cash or
balance inquiry.
4. Speaker: The speaker, if present, makes the transactions and other operations more lively to
the user.
1.7 Different Types of ATM counters

Automated teller machines are mainly classified on the basis of the methods that they adopt to
connect to the host processors. Based on this criterion, these machines are classified into two
major types, that is, Leased-line ATM and Dial-up ATM. Both the types use a telephone
connection to get connected to the host processor. However, the former uses a dedicated, point to
point telephone connection in order to get connected to the host processor, making it very costly

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to set it up and maintain it throughout the year. However, Dial-up ATM use an ordinary
telephone connection to get connected to the user. Hence, Dial-up ATM is very easy to set up
and the maintenance costs are also less compared to Leased-line ATM.

Overall mechanism of an ATM

When an ATM card holder runs short on cash, he/she seeks the help of an ATM counter. In the
ATM counter, he/she provides his/her account information (with the help of his ATM card)
along with the PIN. Using this information, the ATM identifies its user. Once the user is
identified, the ATM sends signals to the host processor, which in turn sends information to the
bank that has issued the ATM card. As a result, an electronic money transfer is done from the
card holder's bank account to the host processor's account. Once the electronic money transfer is
done, the host processors send signals to the ATM, asking the ATM to dispense the money to the
card holder. This is the effective mechanism going on behind an ATM.

Efficiency of an ATM counter many people are often doubtful about the efficiency of an ATM.
Some fear that they might lose their money as the cash would get stuck in the dispenser.
However, that would never happen as ATM counters are provided with unbelievable
mechanisms to prevent such happenings. Each and every ATM is provided with specific sensors
that check the thickness of every note (cash) Scribed Trusted by over 1 million members to
access over 125 million titles without ads or interruptions! That exits through the dispenser. If
the thickness of a note leaving the dispenser is found to be larger than the normal, then it is
immediately separated out into another compartment, before it reaches the dispenser. This
prevents more than a single note that is stuck together, leaving the dispenser. It also prevents
those notes which has been extensively folded or torn from leaving the dispenser and thus,
ensuring the quality of the service provided by the ATM. Further, these machines are provided
with more sensors that count every note leaving through the cash dispenser. All these
information collected by the sensors is stored in a database within the ATM.

Safety of using an ATM

Do you think that using ATM counters are safe? 'Yes' would be an answer, as long as you
protect your ATM card and PIN (personal identification number). Certain measures are very
essential for the safety of using ATM cards. Often people set their birth dates or phone numbers
as their PIN, which is not at all advisable. The PIN should be a pattern of numbers that can be
easily remembered by yourselves, but that cannot be associated with you easily. Also, it is very
important to prevent the ATM cards from getting scratched. It is also important to note that, once
the magnetic stripe on the back of an ATM card gets extensively scratched, then the card would
get damaged beyond repair. Thus, it is very important to prevent the ATM cards from getting
scratched.

1.8 What are the Performance Measures in ATM?


Various Performance Measures in ATM Switch Design:

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1. Packet Loss Probability: This parameter refers to the probability of a packet being dropped
within the switch before it can be successfully transferred to its destination outlet. Overload
conditions, internal design and shortage of buffer space are the three main reasons for packet loss
in a switch.
2. Delay: This refers to the time required to switch a packet, right from the time it leaves the
output module. The delay includes the time required to process a packet at every intermediate
switching element.
3. Throughput: There are two ways in which people define the throughput of the switch.
According to one school of thought, throughput is equal to the port speed of an input link.
According to other specification, throughput is the sum total of link rates of all input links. A
better measure is the Rate of output traffic rate and input rate ratio. Through put (of Switch) =
Output Traffic Rate at Switch/ Input Traffic Rate at Switch’.
4. Design Complexity: Switch design is generally a way of making a complicated switch design.
A complex switch design invariably translates into either higher costs or limited switching
capability.
5. Scalability: Scalability refers to the ease with which a switch can be expanded. First, a
scalable switch must be capable of supporting additional inlets without any deterioration in other
performance measures. Secondly, it must also be capable of supporting any increase in the port
speed of it sinless.
6. Cost: Cost is a significant factor in deciding the success or failure of a switch design. Quite
often, performance efficient switch designs prove to be commercially unavailable option, there
by locating the design to a place in research papers only.

1.9 Benefits & Drawbacks of Using an ATM Card

Your bank usually offers a card for use at automatic teller machines, or ATMs. The card gives
you fast access to the money in your banking account just about anywhere. You can also use it to
check your account balances. ATM cards include debit cards and the two are often used
interchangeably. While debit cards allow you to make purchases and pay bills, you must use
them carefully.

Access Benefits Debit cards, also called check cards or bank cards can be used like an electronic
checkbook. Most banks give you a debit card when you open a checking account so you can
make withdrawals from ATM machines or make purchases. Some ATM cards are issued for
specific accounts and can only be used at a particular bank.

Safety Issues ATM cards issued for specific accounts and banks can have safety advantages over
debit cards. Although debit cards have a personal identification number, or PIN, some stores
don’t require aping to buy something. If your debit card is stolen the thieves can have an easy
time of swiping the card to swipe your money. ATM cards, on the other hand, can only be used

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with a PIN. Debit cards often have a credit-card logo and number, which can be copied and used
by other people, while ATM cards usually just have the bank or financial network name on them.

Card Convenience However, bank customers usually enjoy the convenience of ATM debit
cards to take out money from a machine and to buy products or services. You don’t have to carry
cash because you can get it from almost any ATM machine, though you may end up paying a fee
if you use an ATM that's not in your bank's network. You can pay your bills easily and quickly
with a debit card because the number on the card acts like a credit-card number.

Card Disadvantages Withdrawing money with ATM or debit cards is so easy you could drain
the account accidentally. Banks usually charge overdraft fees unless you have credit-line
protection. Depending on your bank, debit cards might also have annual fees, or charge you each
time you use your card. Writing a check usually gives you time to cover your account if you're
short, but money from cards comes out instantly. Unlike a credit card, ATM or debit cards don't
usually offer you protection for refunds on purchases or help build up your credit rating.

Benefits & Risks of Using ATM Machines

Automated teller machines, or ATMs, offer convenient self-service banking When the bank isn’t
open, you can use a debit card with an ATM to get cash, make deposits or check account
balances. Despite these benefits, however, using an ATM can leave you vulnerable to robbery
and can cost you in service fees.

Convenience is a primary benefit of ATM use from a service standpoint. Banks place their
machines in multiple locations that are convenient for customers to reach while maintaining a
blend of personalized service at branch locations. Customers often take ATMs for granted or
don’t pay attention to a machine's location until they need cash to pay for something. Making
deposits with an ATM is another plus.

Versatility Bank ATMs have become increasingly versatile as companies automate more
services. Getting cash, making deposits or loan payments, transferring funds between accounts
and checking your account balances are some of the more common services an ATM offers.
Some ATMs even sell stamps or fund prepaid cell phones. Banks collaborate with machine
manufacturers to make sure

ATMs meet accessibility standards required by the Americans with Disabilities Act. Key
upgrades in 2012 included improved screen and keypad accessibility for patrons in wheelchairs
and easy-to-read Braille features for blind patrons.

Fees Usage fees are the main drawback of ATMs. If you use an ATM not owned by your bank,
you typically pay the machine owner a fee ranging from $1 to $3. You also may have to pay your
bank a fee in the same range. Some banks assess a fee to provide balance information and to
process other non-cash transactions. Overusing ATMs outside your bank's network can add up

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over time. Save yourself money by using ATMs owned or approved by your bank and getting
cash back on purchases.

Service Problems and Safety ATMs are convenient, but they don't offer the personal interaction
you get at your local bank. Nor do they answer questions you might have about bank services.
As banking customers become more dependent on self-service devices, banks may cut back time
on personalized services, including consultations for checking and savings accounts and for loan
products. In an article published by the Center for Problem-Oriented Policing, attorney Michael
S. Scott notes that ATMs have a high propensity for robbery in some areas. Consumers getting
cash late at night are especially at risk of being robbed.

The Benefits of a Bank with Free ATM Service


A bank with free ATM service is a convenience that can save the savvy consumer hundreds of
dollars annually. Why Bank With Free ATM Service? Every time you use an ATM from a bank
without free ATM service, you're charged $1 to $3. If you use the bank without free ATM
service 100 times in a year, you've lost $100 to $300.
Benefit 1 - Saving Money In the above example, you saved $100 to $300 in a year. You can also
save money by:
 Avoid the secondary fee (an additional $1 to $3) one's own bank may charge for not
using the bank's ATMs
 Get cash back after using the ATM card for purchases and bypassing fees
Benefit 2 - Knowing Where to Go Even if you're a customer of a bank with free ATM service,
you can still be charged fees. To make sure you continue to bank with free ATM service:
 Ask your bank for a list of proprietary ATMs (ATMs the bank owns)
 Plan ahead and make the time to visit the proprietary ATMs
 Avoid impulse purchases, if the ATM is non-propriety or national, you will be charged a
fee.
Benefit 3 - Confidence in One's Bank
Banks with free ATM service likely offer other great services, too. Some places to look for free
ATM service include:
 Banks (but as many as 10% are banks without free ATM service)
 Credit unions, which are mostly not-for-profit
ADVANTAGES & DISADVANTAGES OF AN ATM

Advantages of an ATM
1. An automated teller machine increases existing business: The typical ATM customer will
spend 20-25% more than a non-ATM customer, according to research conducted by AT&T
Global Information Solutions.
2. An automated teller machine generates new business: Customers are more likely to seek out a
location with an automated teller machine; in addition to convenience, there is a number of
safety benefits associated with an in-store automated teller machine.

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3. An automated teller machine provides additional revenue streams: Each ATM withdrawal
transaction generates surcharge income for the owner of the automated teller machine.
Additionally, an automated teller machine can provide revenue from on-screen advertising,
couponing, and alternative media (e.g., prepaid phone cards, postage stamps) dispensing
opportunities
.4. An automated teller machine reduces risk and lowers costs: Having an automated teller
machine on the premises can reduce the number of bad checks and cut credit card expenses
because customers have the option of withdrawing cash instead.
Disadvantages
• Not available in remote places.
• Cannot avoid illegal use in case of stolen card.
CONCLUSION
With the growing networks ATM might soon be installed at many places.- ATMs for the blind
have also been designed & are available in the Chinese market.- ATMs that make available
various types of currencies are also available.
ATM fraud: How to withdraw cash, but keep bank balance intact
Since automated teller machines (ATMs) made their grand entrance in the country, scams like
the matchstick trick, glue stick trick, thermo-cam trick, skimmer trick, shoulder surfing trick,
sleek trick at pouch, and sleek trick at the cash dispenser unit began surfacing as conmen used all
kinds of methods to obtain cash fraudulently from the machines. However, these tricks are old
hat when compared to the latest ATM fraud that has taken Bengaluru by storm due to its
ingeniously effortless technique. So simple is the plot that it could have been lifted straight from
a Hollywood flick: 15 employees of a country's leading cash management and ATM operations
firm found a way to hoodwink the servers of a nationalized public bank repeatedly and
committed brazen fraud from inside various ATMs across the city, right under the nose of the
security guards and CCTV cameras. Over a period of four months, these employees some present
and some former Swindled the bank of RS 5.91 lakh, but the total fraud committed including by
various other groups of unknown persons is reported to be a whopping Rs 66.58 lakh. But this
figure pertains to just one bank; it is likely that many more banks have been swindled through a
similar modus operandi In that case; the fraud amount could be many times over. The deputy
manager of CMS Info Systems Private Limited (Securitas Division) in Cooke Town, Shankar
Pawar, recently filed a complaint with the East division police accusing 15 of the firm's own
employees of being involved in a large-scale fraud that took place in Corporation Bank ATMs
across Bengaluru between mid-April and early September this year. The police are yet to arrest
the accused, and the case has been handed over to the Central Crime Branch's Fraud and
Misappropriation Squad. The modus operandi used by the fraudsters required scrupulous
precision during execution but was deviously simple in nature. Known as the 'exit shutter
manipulation fraud', the accused would boldly enter an ATM kiosk and insert their card.
Once the PIN and requested amount had been keyed in, the machine would authenticate the card
and account, and the process of cash dispensation would begin. Now comes the tricky part: in
order to carry out the fraud, the accused would simply place their band against the exit shutter
RIFT VALLEY UNIVERSITY Maintaining Automatic Teller Machine (ATM) Services Page 12
where the cash is normally dispensed from for a few seconds, triggering a message that there was
a fault with the shutter, to be passed on to the ATM switch inside. This would cause the machine
to automatically reverse the transaction in the switch, i.e. the amount requested by the accused,
which had been debited from their account, would immediately be reversed credited back to the
account. However, when the exit shutter was released after a few seconds, the ATM would
dispense the amount previously requested since it was manually halted during the process of
dispensation. Given that the physical cash would be dispensed without any amount being debited
from the accused’s account, their account balance would essentially never decrease, thereby
causing a loss to the bank concerned instead. When Corporation Bank got alerted to the heavy
and suspicious losses, they conducted an internal investigation and realized a large scale fraud
was taking place and informed the company contracted with refilling their ATMs with cash. This
was then communicated to CMS Info Systems along with relevant card details and supporting
documents like snapshots, video clippings, and copies of electronic journals containing specifics
of the fraudulent transactions. CMS Info Systems then held their own inquiry and found that 15
of their employees' salary account ATM cards had been used to commit some of these frauds.
Confirming the incident, deputy manager of CMS Info Systems, Shankar Pawar told Mirror,
“We have filed a complaint with the police and investigations are on. The accused have not been
arrested yet, and our technical team as well the bank's main service provider has taken
precautionary measures to prevent a repeat. Our legal team is also working on the case so we can
determine the exact amount lost to fraudulent transactions. “Meanwhile, highly placed sources at
the Corporation Bank stated they had implemented additional security mechanisms at the server
level. “We have taken necessary steps to prevent this sort of fraud from reoccurring. This is the
latest method of scamming banks using ATMs, sowed have strengthened the server to block any
such attempts by customers inside ATM kiosks.
Old and new machines alike cannot be tricked in this manner anymore. Moreover, laymen can
only commit frauds like this for up to 5-10 transactions, after which their account automatically
gets blocked," a source said. However, since the group of 15 employees was working together,
they had reportedly figured out a method to bypass and cheat the server at a higher level, thus
allowing the ATMs used to dispense amounts beyond the accused's daily permissible account
limit. When contacted, a senior police officer said there was little chance of cross-
communication between different servers; however, he did not rule out the possibility that the
various groups involved in the fraud were known to one another. “A complaint was registered
under sections 34, 418, and 420 of the IPC. We have not arrested the accused yet, but have
transferred the case to the CCB's F&M squad for a separate inquiry. We are in the process of
collating large amounts of data, including video clips, copies of electronic journals, card details,
and ATM locations where the fraudulent transactions took place. The total amount of Rs 66.58
lakh is what has been submitted to us by CMS Info Systems in their complaint, but the amount
could be higher," the officer said.

1.20 How to Check the Account Balance of an ATM Card

RIFT VALLEY UNIVERSITY Maintaining Automatic Teller Machine (ATM) Services Page 13
There are several ways to check an ATM balance when an account holder wants to find out how
much cash is available. Checking the balance at an ATM machine, accessing the account online
or calling the bank's customer service department are the simplest ways to find out the
information. The account holder will need a personal identification number, or PIN, to check the
balance at an ATM machine or over the phone. To find the balance using the Internet, the
account holder will first have to set up online banking.
Step 1 one of the easiest ways to check your account balance is at an ATM machine while you
are making a deposit or a withdrawal. At most ATMs, one of the screen options is whether or not
you want a receipt. Request a receipt when you use the ATM, and your account balance will
usually show up on the printout. Depending on the ATM machine, you may have to request the
balance to have it show up on your receipt.
Step 2 When you are not near an ATM machine, use your computer to log onto your online
banking account to check your balance. If you do not have online banking, you must first set that
up before you can see your balance. Go to your bank's website and find the section for online
banking. Follow the instructions to create a log-in and password. Once you finish, you can log
into check your account balance.
Step 3 You can also check your ATM balances if you own a smartphone or tablet. Many banks
have an application that you can download to your smart device to make it easy to log into your
account. If your bank does not have an application, use an Internet browser on your smart device
to find the bank's website. Log onto your online account the same way you do when you use
your computer to find your current balance.
Step 4 Call your bank's customer service department to get your account balance if you are not
near an Internet source. The correct phone number to call is usually on the back of your ATM
card, but you can also contact the branch where you bank. You must have your account number
when you call the bank. Some banks also require you to tell the representative your PIN so have
that number ready as well. If you are not near a phone, stop by your branch and go inside to have
representative give you your account balance.
LO2. Replenish and balance cash in ATM
2.1 ATM cash management
1. Cash forecasting / optimization: Cash forecasting / optimization is done by using scientific
methods by CCSL on a daily basis based on the cash dispensed / consumption in each ATM.
Previous six months data for each ATM has to be provided for Cash forecasting. CCSL will
ensure Cash Efficiency Ratio of 90-95%.
2. Cash Replenishment Services (including EOD / daily Servicing): Details in a secured format
(electronically- email /Fax) to the concerned Bank and replenish the Cash according to the Cash
Indent. CCSL will give consolidated summary at the end of day to the respective Bank
confirming the Cash Replenishment as per the indent. Diversion to the Vault, if any will also be
indicated, specifying the reasons (like ATM down, Line down etc.) for the same. Dual control
will be ensured. Admin cards provided by the Bank will be used while replenishing the cash in
the ATMs. During the EOD process, the custodian will balance the cash, clear any currency
jams, update transaction journal, remove the used portion of the RPT roll and JPT roll, captured
RIFT VALLEY UNIVERSITY Maintaining Automatic Teller Machine (ATM) Services Page 14
cards if any, clear purge bin and load back the overage /excess cash, if any. Cash Balance Report
on these will be submitted to the bank while delivering the rolls and the captured cards.
3. Consumables Replenishment: Procurement, Supply and Replenishment of consumables
(ATM JPT /RPT Rolls, RIBBONCARTRIDGES,) will be done.

4. First Level Maintenance: Activities like ATM / Modem reset / Clearing paper / Card and
Currency jams etc. Call center / email facility is enabled for the FLM activity. CCSL will
provide an internet URL to log FLM calls. CCSL will take back up of Video images as and
when required on request basis. FLM calls are to be reported to the CCSL helpdesk through
email/Web enabled Software, which will be logged and docket number will be provided. On
resolution the status will be updated and closed.

5. Second Level Maintenance Coordination: If FLM is diagnosed as an SLM, suitable call


logging will be done with the concerned ATM vendor and the resolution will be coordinated. All
publicity materials posters, stickers etc. provided by the Bank will be displayed in the ATM
location. Additional Stickers will be displayed in the signage board as provided by the Bank.
Suitable provision to be made available by the Bank in the respective ATM Lobby for display of
the above materials

6. Display and Replenishment of Publicity Materials: All publicity materials posters, stickers
etc. provided by the Bank will be displayed in the ATM location. Additional Stickers will be
displayed in the signage board as provided by the Bank. Suitable provision to be made available
by the Bank in the respective ATM Lobby for display of the above materials

2.2 ATM SWITCHING

We are proposing to Procure, Install and Implement ATM Switching Solutions including, Fraud
and Risk Management, Card Management System, Interface to various CUSSY stems and other
interchanges. Managing Outsourced ATM Switching Services to various Banks The proposed
Switch will have the following functionalities in brief and will be as per the requirements of the
Individual Participating Banks:

2.3 Transaction Processing:

There are various devices like ATMs, POS, Micro ATMs Mobile base devices, Kiosk etc. And
processing of transaction like - Single Message and Dual Message Transaction, IVR, e-
Commerce, m-Commerce, and also have scope for Value Added Service Transactions like Bill
payment, Mobile Top-up, voucher disbursement etc..

Interfaces: The proposed switch will have interfaces with various other Delivery channels
servers like VISA, MasterCard, Core Banking servers of various Participatory Banks etc.

RIFT VALLEY UNIVERSITY Maintaining Automatic Teller Machine (ATM) Services Page 15
Log reports:

Providing of Switch log files Bank Wise and acquirer / issuer wise. Various report on switch logs
to be generated as per the requirement of the Banks for Reconciliation and also for all MIS
reports required for member banks. The switch logs will also be extracted for merchant
transactions and will be provided as per the requirements of the Banks for their processing.

Risk Management: Fraud & Risk Management will be integrated with the solution for detection
and or prevention of frauds.

Facility management: We will provide Management of both DR & DRC On Line Technical
Support for handling daily activities at 24x7x365 basis. What to do if a cash machine doesn’t
give you money or swallows your card

There’s nothing more frustrating than using an ATM and there being an issue…either not
enough cash was dispensed, your card is retained, or your bank account shows cash withdrawal
that you didn’t make. However rest assured, there are processes in place enabling you to resolve
the situation and reconcile the issue as quickly and painlessly as possible. Firstly, if you have any
issues with the ATM take a note of the time, date and place where the situation occurred.

This will help your bank when reviewing the claim. Secondly, speak to your bank before
contacting the ATM provider; if you contact the ATM provider first they will simply refer you
back to the bank. Once your dispute has been raised, the bank will approach the relevant ATM
provider, and if it’s an issue regarding cash inaccuracies, check a record of the ATMs’
Transactions. This will provide information on any under/over deliveries of cash, or if any cash
was requested/dispensed on the date advised. In the majority of cash claims, the bank will
automatically reimburse you while they hold an investigation. If the ATM has swallowed your
card, you will need to go into your local bank branch and advise them of the situation. More than
likely it will be a problem with the card, and you will need to order a new card with one of the
cashiers. This won’t take much time and the new card arrives fairly quickly.

Don’t forget if you take I.D. into the bank (your passport is normally the best form), a cashier
will still allow you to withdraw cash from your account. Either way, once the bank and the ATM
provider have investigated the claim, you will be notified and hopefully the situation will be
resolved. However, if you don’t feel the claim has been settled to your satisfaction, there is
always the Financial Ombudsman Service (FOS). The FOS is an independently governed
service, there to ensure procedure is followed and you are fairly represented without prejudice.
Cash machines are here to provide you with easy access to your cash, and from time to time,
things may go wrong. But there is a huge team behind the scenes making sure your Experience at
the ATM is seamless, and they are there to support you if things don’t go quite as planned.

2.4 The cash cycle end-to-end The cash cycle generally gets sufficient volumes of cash to bank
branches and to ATMs both at branches and off-site where customers need it, according to the

RIFT VALLEY UNIVERSITY Maintaining Automatic Teller Machine (ATM) Services Page 16
Accenture report, Taking Control of the Cash Cycle: Retail Banks’ Opportunity in Cash
Management.‖ When the cash cycle fails, banks incur high costs both in terms of customer
satisfaction and Financial loss. In comparison to the integrated supply chains seen in other
industries, the banking industry’ s cash cycle combines high on-going costs with low efficiency,
tying up more financial, real estate and human resources than it needs to,‖ the report says. Cost
issues are multi -faceted: the cost of cash itself, cash-in-transit expenses, variable insurance
premiums and security costs,‖ said Ron Delevan, executive director for the ATM Industry
Association Europe chapter. Plotting a path to minimize overall costs while delivering industry -
leading customer service demands complete focus and professionalism.‖ According to the NCR
white paper, Delivering Cost -effective Choice, Cash Management Strategies, and total U.S.
countrywide CIT costs are around $3 billion. -Over $30 billion is borne across the U.S. financial
sector and a slightly smaller amount in retail, the NCR paper said. ―Put in other terms, cash
handling can represent 5– 10 percent of a bank’s operating costs and is the equivalent of 1–2
percent of total retail sales.‖ ―Best Practices in ATM Replenishment in Europe,‖ a report by the
ATM Industry Association in partnership with the European Payments Council, estimates that
the cost of cash in the European Union, including the sourcing, preparation and delivery of cash
to ATMs, the replenishment of ATMs and the handling of residual cash, is 1.3 – 2.6 billion
euros($1.7– $3.3 billion) per year.

Monitoring The first step in the cash cycle is for ATM deplores to monitor their ATM cash
levels to determine whether the machines need to be restocked. If so, deplorers need to decide
how much cash and in what denomination(s) ATM deplores may choose to restock their ATMs
on a fixed or variable schedule. An ATM collects data, based on its cash withdrawal and other
transaction history, which it supplies to the ATM processor,‖ said Mike Plante, head of business
development at Cheshire,U.K.- based cash management services provider Cash Management
Solutions.

The ATM deployed collects this transaction data from the processor and uses it to manage their
ATM cash demand and forecasting.‖ The ATM deployer enters the data gathered from the
processor into a spreadsheet or a software application. Ideally, the software provides a Web-
based interface that allows real-time visibility into the ATM deployer’s cash supply chain.

Sources of cash Independent ATM deployers source their cash either from their own working
capital or from vault cash suppliers, which are typically owned by banks. Banks obtain their cash
either from their country’s central bank, from other banks, or from Business customers’ deposits.
Once the cash arrives, banks store it in their branches and vaults.

If a bank uses deposits from its customers as the source of its cash, it might recirculate deposits
made at a branch or use deposits held at its cash processing center. Recirculation regulations The
ATMIA and European Payments Council report, Best Practices in ATM Replenishment in
Europe,‖ says that if a bank recirculates deposits at its branches or cash center, national
recirculation regulations might apply. These regulations might include screening for counterfeit

RIFT VALLEY UNIVERSITY Maintaining Automatic Teller Machine (ATM) Services Page 17
or unfit notes, including those stained by intelligent banknote neutralization systems. A
banknote’s life depends mainly on its denomination: The higher the denomination, the longer the
life,‖ said Ben Thorpe, director of global marketing and strategy at cash-handling technology
vendor Glory Global Solutions. New series of notes tend to be issued every seven to 10 years to
ensure they use the latest state-of-the- art security features.‖ many countries have regulations for
the quality of banknotes in circulation, according to Robin Angus, NCR product development
director for cash management. In the European Union, for example, the European Central Bank
issues guidelines for banknote quality. In 2008, the Federal Reserve revised its guidelines for the
quality of banknotes in circulation in the U.S. Depository institutions (DIs) and other cash
handlers are encouraged to use these guidelines to adjust sorting practices and/or work with
equipment vendors and third-party service providers to make necessary adjustments in
equipment to align with current guidelines,‖ according to the Federal Reserve guidelines.
Ensuring your equipment is accurately calibrated may help your institution correctly identify fit
versus unfit $10 and $20 notes, potentially avoiding assessment of cross- shipping fees.‖ DIs are
expected to supply fit currency from customer deposits to meet other customers’ needs before
requesting currency from Federal Reserve banks. Cross – shipping fees are charged when a DI
deposits fit currency with a federal reserve bank and orders the same denomination within the
same business week and within the same Federal Reserve zone or sub – zone. Ordering―Once
an ATM deployer has calculated the optimal load amount for their ATM’s next load cycle, they
order cash from the funding bank, typically through a Web interface,‖ said David Crossman,
channel manager at Newark,

Delaware- based ATM cash services provider Cash Connect. ―Cash is then sent to a money
center near the ATM. The cash provider coordinates with the armored carrier to pick up the
physical currency at the money center.‖ if an ATM deployed uses a cash provider such as Cash
Connect or Élan Financial Services, which recycles cash in armored carrier inventories, the
deployed cause existing cash from the inventory, said Mark Holland, vice president of ATM
Cash operations and logistics at Pittsburgh, Pennsylvania- based Élan.
Sorting
Banknotes supplied by a central bank or a third-party cash supplier must be counted and sorted
ate cash processing center or bank branch before being packaged to load into ATMs. This
involves culling damaged or soiled notes, which are sold to the central bank at face value for
destruction in a high-speed shredder. Cash centers use bulk cash acceptors to process incoming
notes. The machines simultaneously count and authenticate notes, separating them by
denomination into individual containers. Is and IADs have two cash-packaging options. They
can place the notes either in a tamper proof ATM cash cassette or in a sealed bag that is then
taken to an ATM.
2.5 ATM replenishment
There are two different ATM cash stocking models: The merchant/bank-fill model where
merchant stocks cash in an ATM in a retail store or a bank employee replenishes an ATM at a
bank branch Third-party replenishment in which an armored carrier company stocks ATMs with

RIFT VALLEY UNIVERSITY Maintaining Automatic Teller Machine (ATM) Services Page 18
cash from a bank vault or third-party cash center. ATM deployers that don’t use their own cash
to stock their ATMs must source their cash from a third-party supplier such as Élan Financial
Services, which is owned by U.S. Bank, or Cash Connect, which is owned by WSFS Bank.
When an ATM needs to be restocked, the deployer places an order with the vault cash supplier,
which sends an order to an armored carrier company. Armored car staff use one of three cash
replenishment methods: An ATM cash cassette swap. This involves replacing an empty or
partially empty cassette with a preloaded cassette. The cassette containing residual i.e., unused -
cash is returned to the cash center for counting and reconciliation. As ATMs typically contain
four cassettes, Interest The cash supplier starts charging interest from the moment cash leaves the
vault until: Cash is withdrawn from an ATM by customers and the funds are settling on a daily
basis toan account with the cash supplier.
Residual cash is returned to the cash supplier.
Reconciliation A key part of the cash management process is to reconcile ATM withdrawals
recorded in the electronic log with cash stocked in an ATM and returned to the cash supplier by
the ATM processor and armored carrier. This involves investigating any discrepancies between
the cash stocked in an ATM and the cash returned to the vault after allowing for cash withdrawn
by ATM customers.―For example, if an ATM deployer arranges for $10,000 to be put into an
ATM and $5,000 is withdrawn by customers, then $5,000 should be returned to the cash
supplier,‖ said CMS’sPlante. ―But, if only $4,000 is returned, Cash Management Solutions’
system will spot this discrepancy and trigger an investigation on behalf of our client.‖ once the
cash and activities at an ATM are accounted for, the ATM is in balance. This process includes
considering the starting balance at the last balance point, counting the cash that is currently in the
ATM, accounting for all cash dispensing activity since the last balance point, and considering
any funds that were added in the interim.
Cash recycling Cash recycling, the circulation of cash within a single environment, offers several
benefits for FIs Employed at ATMs, cash recycling can dramatically reduce the need to replenish
cash supplies. The fundamental function of a cash-recycling ATM is its ability to validate and
sort notes, according to the Diebold white paper, The Evolution of Self- Service Cash Deposits
Cash deposited at the recycling ATM is validated and checked for fitness before being sorted
into individual cassettes by denomination. Suspected counterfeit and damaged notes can be
sorted into an exceptions binding addition to cash-recycling ATMs, banks are using teller cash
recyclers. These units can quickly sort cash by denomination, check it for fitness and
authenticity, and reduce time spent balancing the cash drawer. With cash stored only in cash-
recyclers and vaults, FIs can better judge how much should be solder ordered each week,
increasing the efficiency of branch change fund management and helping to keep the branch
within its total branch cash limit, according to the ATM Marketplace guide, Deposit.
Automation: Remaking the Consumer Experience, sponsored by Diebold
Cash can remain within a branch rather than being taken from the ATM by a CIT company,
sorted, and returned to the branch, the guide said. ―Now (banks) can have additional technology
such as denomination and fitness sorting, a tracking system for the cash coming in and greater
storage capacity It leads to one less trip ... back to the vault.
RIFT VALLEY UNIVERSITY Maintaining Automatic Teller Machine (ATM) Services Page 19
2.6 Issues in cash management

ATM cash management is a balancing act. If a deplorer’s ATMs don’t h old enough cash,
customers are dissatisfied and frustrated. But if they hold too much, it can cost an ATM deployer
thousands of dollars in annual interest and lost revenues. An estimated 75 percent of an FI’s cash
is dispensed through the self-service channel, according to the Diebold white paper, ―ATM
Currency Management.‖ Thus, it’s critical that FIs manage the cash inside their ATMs
effectively. If an FI maintains optimal cash levels throughout its self-service channel, this helps
to reduce costly trips to replenish ATMs. Optimizing ATM cash management ensures limited
residual cash levels at ATMs and frees idle cash for more profitable, revenue-generating
opportunities. If your ATMs have high cash residuals, this is indicative of poor ATM cash
forecasting,‖ said CMS’s Plante Forecasting Accurate cash forecasting is the top requirement for
effective cash management,‖ said Plante.―Without accurate forecasting, ATM deployers pay too
much interest due to having excess cash in their ATMs, or they pay for too many cash
deliveries.‖ An optimal replenishment schedule one that balances the costs of cash and armored
carrier services becomes more important when interest rates or carrier fees rise. ATM owners
must first decide what is most important to them: lowest cost loads or highest availability to
cardholders, or some point in between,‖ said Élan’s Holland. ―While some ATMs have
consistent dispensing patterns, most don’t. The volatility of total cash dispensed for each load for
a given ATM can be significant. To ensure the ATM is always up, a larger buffer must be added
to make sure it dispenses through unexpected volume spikes. If a low residual is desired, there
may be higher incidence of emergency cash loads or out-of- cash situations.

LO3. Maintain security of ATM cash


3.1 How is an ATM secure?
I'm curious why an ATM computer is considered secure. The general adage of "If an attacker has
physical access to my machine, all bets are off," seems to not apply in this circumstance (since
everyone has physical access to the machine). Why is this? I thought of the fact that many have
security cameras placed over them, but this doesn't seem sufficient to keep ATMs secure, as
there is no one constantly watching the camera feed and looking for suspicious behavior. The
most this could be used for is identifying an attacker after an attack has been attempted. It seems
like this is fairly easily solved through plain clothes, is ask, gloves, etc. So if this alone isn't or
shouldn't be enough of a deterrent, why do we not see ATMs getting hacked for all their cash at
4:00am? What makes the device so secure? Is it just a simple risk-reward analysis, where the
cash in the ATM isn't worth the effort of the hack? Or is there more to it which makes the
computer secure? Also, I noted that there have been a couple questions about ATM security (like
this one and this one), but mine is about the physical security of the machine, since it violates a
common security principle, not anything network related.
3.2 ATM Services and Security Currency Level Monitoring

We ensure smooth operation and continuous availability of your cash dispensing and check
image or envelope deposit machines. Unlike other ATM service companies, Garda World Cash

RIFT VALLEY UNIVERSITY Maintaining Automatic Teller Machine (ATM) Services Page 20
Services provides customized automated teller machine services, tailored to your specific needs.
Are you looking for a full-service ATM management solution to ensure maximum availability of
your machines?

Our ATM services include:

 ATM-fit currency preparation and packaging


 Cash replenishment and settlement
 Emergency cash allocation
 Currency cassette preparation
 Reconciliation of cash
 Deposit retrieval
 Deposit verification
 Clearing of currency and paper jams
 First-line maintenance
 Maintained vault security during second-line vendor repair

ATM replenishment of paper supplies: deposit slips; envelopes, receipts, audit tapes and
electronic journal service Are you concerned about monitoring your currency levels and want to
find a way to optimize them? At Garda World we not only monitor your ATM currency levels,
we also suggest improvements to provide more comprehensive cash management of your ATM
funds.

10 Tips to Maintain ATM Security

These days, most Americans aren’t worried about fraud. Per the Consumer Sentinel Network

Data Book synthesized by the Federal Trade Commission (FTC), less than 1% of the American
population claimed to be a victim of debit card fraud last year. Of course, there are seemingly
more important things to worry about, such as getting the kids to summer camp on time.
However, everyone has heard that horror story of Mr. and Mrs. Smith being embezzled
thousands by an identity thief or through credit card fraud. Though many of these stories are not
much more than that stories the ever-improving technology of the modern era is rendering fraud
that much more threatening with each passing day. The following is a brief list of 10 easy tips to
keep your ATM account safe from fraudulent activities.

1. Treat Your ATM Card like Cash simply treating your ATM card like what it is – cash is one
of the easiest ways to avoid becoming a victim of fraud. Keeping it concealed and on your
person at all times when in public greatly reduces the risk of it being stolen or lost. Ensuring that
you have your ATM card beforehand after you go out into public will narrow the window of
time during which your card goes missing. Therefore, if you do find that your card is missing,
notify your bank right away; most banks can void ATM cards if recently misplaced, so the
sooner the better Pro Tip #1: If you keep your ATM or debit card in your wallet, always keep it

RIFT VALLEY UNIVERSITY Maintaining Automatic Teller Machine (ATM) Services Page 21
in the same slot. That way, when you check your wallet before going out, you won’t fumble
around looking for your card!

2. Create a Strong Pin Creating a strong pin, the four-digit number you need to access your ATM
account, will make it much more difficult for an embezzler to gain access to your account if he
or she manages to get ahold of your card. With A LOT of personal information being widely
available and easily accessible in this day and age, making your pin your birthday or some other
obvious combination of numbers makes you more susceptible to fraud. Also, treat your pin like
your Social Security Number…DOESN’T WRITE IT DOWN! Pro Tip #2: Inquire with your
bank about using a pin longer than four digits. To increase account security, many banks are
allowing customers to have pins longer than the standard four digits!

3. Be Efficient and Plan Ahead Try to visit the ATMs of your bank only. This way, you will
avoid extraneous fees and become more familiar with operating your bank’s ATMs quickly and
efficiently. Minimizing the time you spend at the ATM will greatly reduce the risk of your
credentials being stolen. Before visiting an ATM, have a plan of what checks you are going to
deposit, how much money you are going to withdraw, etc. This way, you will not be enticed to
utilize other ATM functions and end up spending more time in a somewhat vulnerable state than
necessary.

4. Disposing of ATM Receipts Do not throw out your receipt from the transactions you made at
the ATM at a nearby trashcan. Even if your account information is not displayed on your receipt,
it is safer to just take it home and shred it.

5. Familiarize Yourself with Your Account Being familiar with how much money you have in
your ATM account will make it easier for you to determine whether or not something is wrong.
If you are unsure of the amount of money you keep in your account, in the case that money is
stolen, you will have no way of knowing to report potential fraudulent activities .Pro Tip #3:
Money Stream provides convenient and accurate account information, so you won’t have to wait
until you get to the ATM or check your balance on your bank’s website! Just login to Money
Stream, click on the ―Accounts‖ tab, and view all your account information!

6. Avoid ATMs at Night Part of Tip #3 is ―Plan Ahead‖, and your plan should definitely
include NOT visiting ATMs at night. As with any other crime, ATM fraud occurs much more
frequently at night, putting your one at a bigger risk of being stolen. If you absolutely must use
an ATM at night, make sure the surrounding area looks safe and is well lit. If you notice that
certain conditions jeopardize the safety of using a particular ATM at night, notify the bank.

7. Shield the ATM If you adhere to Tip #6 and manage to avoid ATMs at night; visiting ATMs
during the day may pose another challenge: lines. People are more likely to frequent ATMs
during the day, and chances are that there will be line when you need to make a transaction. To
protect your pin from being stolen by someone standing behind you, try to shield the keypad
with your body or your hand as you type in your pin this strategy also proven effective in

RIFT VALLEY UNIVERSITY Maintaining Automatic Teller Machine (ATM) Services Page 22
safeguarding your pin in the unlikely event that criminals installed surveillance equipment to
monitor people as they input their pins.

8.Keep Your Guard Up Even after you finish your transaction, be aware of suspicious activities
as you make your way away from the ATM; thieves will target people leaving ATMs because it
is much more likely that they are carrying cash. If you do notice suspicious activity, continue to a
safe place and notify the authorities.

9.Drive-up ATMs The advent of drive-up ATMs not only results in more convenience when
making transactions, but being able to easily use an ATM from the safety of your car also
provides another layer of safety. However, do make sure that all of your doors are locked, your
headlights are on, and all windows are rolled up except for the one you need to use the ATM.

10.Suspicious Activity If you happen to notice any suspicious activity during your transaction,
cancel it, make sure you recover your card before leaving, and report the activity to the bank. Pro
Tip #4: An easy way to monitor your account for suspicious activity is to login to Money Stream
every morning. This method will eliminate the need for a trip to the bank! While ATM card
fraud is less frequent than identity theft or credit card fraud, according to the FTC, over $85
million was reported stolen via debit card fraud last year alone. Therefore, ATM card fraud is
still very much worth taking precautions against in the event that it does occur. Following each
and every one of these tips may seem bordering paranoia, but when it comes to your finances,
you can never really be too careful. Happy transacting!

3.3 Internal theft Losses from internal theft hurt the

ATM industry more than most other types of ATM-related fraud, according to ATM Vault Cash
Management: Five strategies for optimizing a cash program,‖ an ATM Marketplace guide
sponsored by Cash Connect. When employees become disgruntled or experience hard times, it’s
easy for them to skim cash especially from a busy IAD that doesn’t have time to make cash
monitoring its primary business. Poor ATM cash management reporting can lead to undetected
internal cash theft resulting from a lack of transparency on the status of cash in the network.
Cash Management Solutions’ service will spot any discrepancies in ATM cash balances between
the amounts loaded and the amounts returned to the bank, and detect any fraud,‖

ATM deployers outsource cash management in order to ensure that their service provider gives
them high quality reports, along with checkpoints for confirming or denying transactions
recommended by the service provider.

3.4 How to Block an ATM Card

If you have accidentally left your ATM card somewhere, used it on a fishy website or are afraid
that someone has obtained your card number, you may worry about being responsible for
charges you did not make. Most ATM cards have protections in place to help you in these

RIFT VALLEY UNIVERSITY Maintaining Automatic Teller Machine (ATM) Services Page 23
situations, but it is always a good idea to block your ATM card if you are afraid that your
account information might be compromised. Though it may involve some calling around, it will
be much less difficult than dealing with identity theft down the line Instructions.

1. Document your reasons for needing to block your ATM card. If you are afraid that someone
has obtained your personal information, write down exactly when and how you feel they
obtained it. If you left your card somewhere, write down where you left it, along with the date
and time. If there are any suspicious charges to your account, make sure to note those as well.

2. Set aside some cash to use in case you cannot access your bank account for a few days while
the bank investigates what is going on with your ATM card. If you have other accounts, you may
be able to use those while the bank conducts its investigation. Otherwise, it is always smart to
have enough cash on hand to cover necessities for a few days.

3. Call your bank and share your documentation with them. They may ask you additional
information about the security of your account. At this time, they will block your ATM card and
may even issue you a new bank account number. You may be unable to access your account until
they mail your new information and ATM card to you.

4. Activate your new ATM card when it comes in the mail. Usually, a toll-free number will be
listed on the card. You will need to call the number, give the customer service agent some
personal information, and then your new ATM card will be activated for use.5.

Take proper security precautions in using your new ATM card so that you do not have to have it
blocked again. Check your bank balances daily and be selective about where you use your card,
especially on the internet. Consider using an identification theft protection service to protect your
account from further harm. You may also consider using a service that gives you a unique card
number every time you order with your ATM card on the Internet. The unique number will only
work once and will help to keep your finances safe in the long run.

3.5 How to Replace an ATM Card

ATM cards provide a convenient service that reduces the need for writing checks. They also give
you access to your cash 24 hours a day from ATM machines around the world. If you have to
replace your ATM card because it is damaged, lost or stolen, you can do so by calling your
banking institution's customer service number or by going into a local branch office Instructions.

1. Contact your banking institution immediately if your card was lost or stolen. Many banking
institutions have 24-hour hot lines especially for this purpose.

RIFT VALLEY UNIVERSITY Maintaining Automatic Teller Machine (ATM) Services Page 24
2. Request a new card. This can be done over the phone by calling the customer service
department or by visiting a local branch office. It usually takes seven to 10 business days to
receive your new replacement card.

3. Activate your ATM card. This can be done by calling the number listed on the front of the
card. Sign the back of it.

3.6 How to Withdraw Money without an ATM Card Although an ATM debit card is helpful to
keep on hand, you may find yourself in the need of cash from your banking account, and the card
is nowhere in sight. Thankfully, using the ATM card is not your only option when it comes to
withdrawing funds from either your savings or checking account.

Step 1: Give your state issued driver's license to the teller and explain that you do not have your
ATM card on hand. The teller has the ability to look up your information using your driver's
license. You can then write out a check to cash.

Step 2: Fill out your information on a withdrawal slip (available at your local bank if you don't
have anyone hand) and write in your account information. Submit the withdrawal slip to your
bank and the teller withdraws the money from your account (depending on your bank, you may
be asked to supply I.D. such as your driver's license).

Step 3: Write out a check to cash and submit it to a teller at your local store. Depending on the
store's policy, you may or may not be allowed to receive cash from the company (due to this it
may be your best interest to ask about this policy before writing out the check). You may only be
allowed to do this if you have made a purchase.

3.7 What are the types of ATM?

Different types of ATM are available and the main benefit of this ATM is.

There are five types of ATM these are:

Onsite ATM-Is situated either within the branch premises or in very close proximity of the
branch.

Offsite ATM- Is not situated within the branch premises but is located at other places, such as
shopping centers, airports, railways station and petrol stations.

Worksite ATM -Is located within the premises of an organization and is generally meant only
for the employees of the organization.

Cash Dispenser-Allows only cash withdrawals, balance enquiry and mini statement requests,
cash dispenser(CD) is generally used as the ATM, however the customer cannot deposit cash
orcheques in a CD, whereas, they can use ATM both for cash withdrawal and for depositing cash
or cheque.

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Mobile ATM- refers to an ATM that moves in various areas for the customers. Few priavte
banks have introduced ATM on wheels.

3.8 Benefits of ATM: The benefits of ATMs are manifold and extend to the customer and banks.
The benefit of ATMs for customers is: Provide 24*7 and 365 days a year service. Offer quicker
and efficient service Allow privacy in transactions Are error free Enable cardholder to access
cash at any location regardless of where they maintain their accounts. Offer flexibility of cash
withdrawals to the customer Enable fund transfer across branches, in the linked accounts

Offer anywhere banking facility. The benefits of ATM for banks are: Is an alternative to extend
banking hours is cheaper if transaction is large in number, thereby; reducing footfall at the
branches Is an alternative to opening new branches Reduces the operating expenses of the bank

Helps abnks to avoid transportation of cash and cash handling employees can be located in any
convenient location in any form as wall unit, lobby unit or a window unit. Increase market
penetration Relieve the bank employees from routine transactions so that they can focus more on
analytical and innovative work Enables bank officials to up-sell or cross-sell either same
products or different products

Security advice The ATM Security Working Group (ATMSWG) has produced detailed
guidelines on the best practice for ATM physical security. All ATM operators should refer to this
guide. Click on the link below to download the guide as a pdf file.

3.9 Security of automated teller machines

In the consideration of ATM, there are different aspects that should be considered. First, one has
to have an idea about the communication within ATMs. Second, the issue of security is of
paramount importance because all over the world, there is an increasing use of ATMs and so the
risks of hacking turn to be a reality more than ever before. In the past, the function of ATMs was
to delivers cash in the form of bank notes and to debit a corresponding bank account. Cards were
used to identify the user. As for the withdrawal of money, different methods were used. For
instance, punched cards were used. By the use of such cards, only one payment was authorized.
Thereby, a user had to get a supply of cards from his/her bank because the punched cards were
not returned to the user. Another example was the use of a magnetic card which had a limited
life. The use of such cards allowed; for instance, twenty withdrawals of money. From the
beginning, personal identification number (PIN) has been of very great importance in the overall
operation.

The use of it has been done with the aim to decrease the risks that might result from the loss of
cards and the misuses that might be connected to that. In fact, in the past as well as in the
present, there have been different aspects in the consideration of the designing and the
communicative basics of Automated Teller Machines. One aspect of it has been how
communication between its participants could be possible. [3]

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The second of it has been to take into consideration the purposes which could be a part and a
parcel of any communicative act. In this context, there are different participants involved in
ATMs communication. To cite but a few of them, in an ATM communication, there are remote
partners and interfaces to the outside world and these interfaces are in their turn subject to more
than one classification. The first interface represents the relationship between the End-user and
Automated Teller Machine. The second interface occurs between the ATM and the central bank
computer.

Security

A first approximation of security exposures in Electronic funds transfer systems can be done
without delimiting their components. Electronic funds transfer systems have three components;
namely communication links, computers, and terminals (ATMs). To begin with, communication
links are subject to attacks. There are two techniques made recourse to as far as the inception of
messages is concerned. On the one, they are subject to attack by the use of passive techniques
such as listening. On the other, they might be subject to attack by active techniques such as data
alteration and substitution. Moreover, both techniques can be used in combination. The second
component is computer security. There are different techniques that can be used in order to have
access to a computer such as the access to it via a remote terminal or other peripheral devices as
the card reader. As a result of such attacks, abusers could copy, replace or even destroy programs
or data saved in or being processed in a computer system. As for terminal security, it is of a great
importance in cases where cipher keys reside in terminals. In the absence of physical security, an
abuser may be probe for a key or substitute its value. In order to avoid such abuses, the
preserving of both the integrity of non-secret parameters and the confidentiality of secret
parameters should be incorporated. Moreover, the use of public key crypto system(PKC) where
public keys in the Electronic funds transfer are made recourse to prove to be insecure in the
absence of physical security at the entry points. Moreover, as a public key allows the terminal the
authentication of the response messages received from the issuer, for the generation of the MAC
son transaction request messages sent to the issuer, a secret key is still needed. In the conduction
of transactions at the Electronic funds transfer terminal, the only required thing is personal
verification. That is, the authentication of a message between the EFT terminal and the issuer is
theoretically not required. In such a case, the installation of a public key in the Electronic funds
transfer terminal would be adequate as far as the permission of personal verification is
concerned.

3.10 ATM Security, Protecting against brute force theft

As ATMs continue to populate the retail landscape, thieves looking for quick cash don't have to
look very far. The increasing deployment of off-site ATMs in less secure locations has opened
the door to smash-and-grab thefts and vandalism. Increased deployment of low-end cash
dispensers with low-end construction has presented a growing number of easy targets. Randy
Nolte, president of Manhattan Financial Services in Davie, Florida, talked

RIFT VALLEY UNIVERSITY Maintaining Automatic Teller Machine (ATM) Services Page 27
withATMmagazine.com about two machines stolen from his company. “The machines were in
strip joints," he said. "The first one happened between 4 and 6 a.m. Two guys with masks caved
in the side of the machine, which freed up the pins on the top and bottom right hand corner. They
knocked open the cash dispenser and got the cash out of the machine. They pretty much
destroyed the ATM."A second machine at a flea market was taken by thieves who wrapped a
chain around the dispenser and rocked it loose, Nolte said. Manhattan Financial Services has 48
machines placed, but a company with only two machines would have been put out of business,
he added. Brute Reinforcement One way to ensure a company survives theft of machines is
insurance. Joel Doving, a loss prevention specialist with Campbell Galt & Newlands insurance
agency in Portland, Oregon, spoke about the risks and benefits of ATM security. “There are
many things to be concerned about," he said. "There is a lot of focus on electronic security right
now and deservedly so. But the physical security of the machine as they become more numerous
is also an issue because more people are going to understand the way to make off with those
machines. “Insurance has to be a last resort to protect the assets of an organization, Doving said.
It's meant to be integrated with other security measures to reduce the monetary loss. The low-
tech method to fight brute force is brute reinforcement, which has worked in some cases.
Damage to the

Machine still occurs, but the cash box is safe. Robert Povey, head technician for Manhattan
Financial Services, said thieves will no longer pop the side off of the company's machines with a
crowbar. "We've come up with a redesign on the cabinet which will allow us to stop them from
doing that," he said. "We've also ensured they can’t get enough pressure in the right place to
begin with so that they can't actually pry the door." Nolte added that they have also installed a
reinforcing bracket through the wall from the outside wall to the inside one, as well as secured
the unit to the floor to prevent the machine from being rocked from its mooring. The machines
were built with half-inch holes but had been installed with three eighths inch bolts. Povey has
since increased the size of the bolt and placed it through a plate inside the machine, essentially
trapping it to the concrete. Unsatisfied with the security measures of his previous supplier, Nolte
then switched to TBS out of Tampa, Fla., for his new machines. Because the company was a
former end user of its own machines, it was easier to make the supplier understand and react to
the thefts. “I have six machines that are in strip joints," Nolte said. "If that one security strap
works, we’re going to do the rest of them. Manufacturers expect their units to be in the most
perfect place, where it's treated with kid glove care. You start getting into nightclubs and it won't
be treated like that. “The next step in securing the machines is to tie them into security systems,
install locator devices, attach dye packets to cash boxes and then advertise those measures on
exterior signage. Povey said, "It is a bit daunting when the thieves have to face that the money
has been dyed, the police have been called and a siren is going to go off. Advertising those steps
deters the considerable damage to your machine in the two minutes that they've been there. If
you can deter from even beginning that, then you're much better off."

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Locating Lost Machines Electronic security is equally important as physical security, and the
market has responded with products designed to protect these vulnerable, valuable targets.
Everything from simple preventive measures to high-end security applications is available for
ATM owners. Eric Sheppard, vice president of Security Corporation in Richmond, Virginia,
added that the locator devices his company started marketing in January can react in seconds to
give police the exact position of a machine that has been stolen.

He described the locator system, which applies the same global positioning system (GPS)
technology used by outdoor sports aficionados and ships at sea. The U.S government launched24
satellites around the globe, with 12 stationed on any horizon each satellite sends a beacon from
which the locator device can triangulate its position. The ATM security unit is 5 inches by 6
inches by 1.25 inches and can fit inside the cash box. The twist that Security Corporation has
applied is to link each locator from the cash machine to central monitoring station via cellular
communications. A mercury switch or a contact mounted to the floor detects that the machine
has been lifted. The system initiates a phone call to the monitoring station, which relays the
locator's position once a second. At the monitoring station, a computer screen brings up the
latitude, longitude, speed and direction where the stolen machine is heading. A database provides
phone numbers for police and the after-hours contact personnel. Second monitor overlays the
global positioning system’s location over a street map. “The mapping is amazingly accurate,"
Sheppard said. "I can tell the local police department to connect me with the closest police
officer to the theft. The police can transfer my call to the officer, and I can say the machine is
traveling 43 mph in the 3600 block of West Main Street, and then it's at a stop light, and then
making a left onto another street. “Security Corporation serves Maryland, Virginia and the
Carolinas. Average installation price is about $1,200 and the monitoring cost averages near $30
per machine per month.

The company distributes its products through resellers. The system will be useful for the smaller
stand-alone systems such as those placed inconvenience stores, where the real problem is,
Sheppard said. “Convenience store clerks really don't care if the machine gets stolen or not," he
said. "They’re not going to call until the machine is out the door. By then it's generally too late to
catch it, except to pick the pieces off the ground. The locator device can prevent the damage by
initiating its alarm call in seconds, before the thieves can get the unit outside and move it. Within
a matter of six seconds after it's tripped, the ATM Locator is in the process of dialing us with its
location," Sheppard said. "Not only do we catch the ATM before it gets far, we catch it before it
gets damaged, which is half the battle."

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