Dallol Technology & Business College

Department of Accounting Academic Year: 2021

1. Write and discuss precisely about the 10 easy tips to keep your ATM account safe from
fraudulent activities.
Answer:
The following is a brief list of 10 easy tips to keep your ATM account safe from fraudulent
activities.

A) Treat Your ATM Card like Cash

B) Create a Strong Pin
C) 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 banks ATMs quickly and efficiently.
D) 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.
E) 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.
F) Avoid ATMs At Night

Plan Ahead‖, and your plan should definitely include NOT visiting ATMs at night.
G) Shield The ATM
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.
H) 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.
I) 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.

2. Write the steps in short how to block an ATM card?

Answer:
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.
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.
3. Call your bank and share your documentation with them.
4. Activate your new ATM card when it comes in the mail.

5. Take proper security precautions in using your new ATM card so that you do not have to
have it blocked again.
2. Write the steps in short how to replace an ATM card?
Answer:
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.
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. Discuss about the five types of ATM.
Answer:
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
or cheques in a CD, whereas, they can use ATM both for cash withdrawal and for depositing
cash or cheque.
Mobile ATM- refers to an ATM that moves in various areas for the customers. Few
priavte banks have introduced ATM on wheels.
4. Discus the benefits of ATMs:
i) The benefit of ATMs for customers
Answer:
The benefits of ATMs are manifold and extend to the customer and banks.
The benefits of ATMs for customers are:
- 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.
ii) The benefits of ATM for banks
Answer:

The benefits of ATM for banks are:

- Is an alternative to extend banking hours
 - Is cheaper if transaction are large in number, thereby, reducing
footfall at the branches
- Is an alternative to opening new branches?
- Reduces the operating expenses of the bank
- Helps banks 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.
ATM replenishment

There are two different ATM cash stocking models:

- The merchant/bank-fill model where a 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 cash
from a bank vault or third-party cash center.

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 settled — on a daily basis — to
an 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’s
Plante. ―But, if only $4,000 is returned, Cash Management Solutions’ system will spot this
discrepancy and trigger an investigation on behalf of our client.‖

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‖

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
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, Ribbon
Cartridges,) 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

ATM SWITCHING

We are proposing to Procure, Install and Implement ATM Switching Solutions

including, Fraud and Risk Management, Card Management System, Interface to various
CBS Systems 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:

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
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 is 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.