case study on automated teller machine (atm)

8/14/2019 Case Study on Automated Teller Machine (ATM)

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ATM

Faculty of BusinessAdministration

Semester: 1st


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INDEXIntroduction

What is ATM

How does it work

ATM architecture

ATM in Business

ATM Security

Advantages & Disadvantages

ATM Application

ATM Problem

Conclusion


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WHAT IS ATM

ATM, or by its more formal name is Asynchronous Transfer Mode, is a packet-based network system designed for the simultaneous transmission of voice,video and data. In the mid 1980s, the major telecommunication companiesdecided that they needed a new needed a new surge of video and data, alongwith voice, traffic being sent over their existing networks. From this, the conceptof ATM was born. From an increasing need to handle data traffic, which is

inherently packet-based, as well as voice traffic, ATM was designed to work as apacket-switched network. ATM, therefore, is designed so that it can handlecircuit-switched traffic on its packet-switched backbone. To accomplish this,

ATM creates virtual circuit connection over the packet-based network betweenthe source and the destination.


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ATM CARD

With a ATM card, you can access and carry out most of your personal banking transactions24-hours a day, 365 days a year.

With an ATM card, you can perform a wide range of transactions through Automatic TellerMachines (ATM) at any time that is convenient to you, day or night

Features

Deposit cash or cheques into your accounts;

Transfer Funds between your own accounts;

Check your balance.

Change your PIN.

View transactional history.

Order statements/cheque books.

Send in other instructions to the bank via the mail deposit system.

Make payments to other same bank customers.

ATM card also be used against your foreign currency accounts. With this card, you canwithdraw cash from your accounts at 500,000 ATMs worldwide.

Daily Transaction Limit

To cap your potential risk exposure in the event of card loss, there is daily cash withdrawallimit of BDT 20,000 for regular Savings and Current accounts and BDT 50,000 for PowerVantage accounts. The minimum amount you can withdraw is BDT 500 per transaction.

You can transfer up to BDT 100,000 per day between accounts and banks flexibility.

Report a lost card

You have to report if your ATM card is stolen or lost to the bank to block the card.


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HOW DOES ATM WORKATM (Automated Teller Machine) is a computer. It has a small display andsomething similar to a keyboard (even if it doesn't look like one). It runs a

program that is usually written by the bank. The program could do anythingbut banks usually follow a pattern.

Most banks start by asking for the language. They then ask you to insert

your card.This card has a magnetic strip on the back that it reads information about

your bank account (sort of like a diskette on a PC). It uses this informationto look up your information and decide what to do next. Usually this is tohave you enter your password. After that, it's up to the program to decidewhat to do next.

As for the equipment, banks usually buy the ATM as a single piece but it is

actually made up of components. There are several different computertypes but let's discuss this as if it were a PC. There would be several PCIslots.


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ATM ArchitectureATM Architecture


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ATM in Business

ATM business Investment opportunities or ATM franchise opportunities are among the most secure,

rewarding, and easy business investment avenues available to the average business person.

Investors in the stock market consistently gamble. Stocks go up, and they come down. When they go

down, they often take the investors' money with them. With an ATM business investment, the startup

costs are minimal and the rewards are almost guaranteed. That alone makes automated teller

machine investments very appealing.

The aspect of an ATM business investment that is most fulfilling is the fact that the income is

consistent and residual.

When you're seeking a business investment opportunity, do you invest in a short term business in a

small market, or a long term business that almost every American use.

A great way to get started is to get multiple quotes from a service such as ATM Machine Quotes,

which will allow you to compare offers from multiple vendors.


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ATM Security All PIN encryption activity should take place on an Encrypting PIN pad (EPP) or PIN

Encryption Device (PED) to prevent the compromise of a PIN in the clear at a terminal.

ATM PIN encryption should be triple DBS and DSS compliant.

PIN blocks should never be stored in ATM log files.

Personal Account Number (PAN) should be truncated and protected in ATM logs. Secure remote access controls must be established for all ATMs.

Anti virus and Malware detection systems should be installed,, updated and tested

frequently. Insist upon a vendor's written result of each test.


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ATM Advantages

Its very safety to use and carry.

Its very safety because only user and bank can known its PINnumber.

If a user lost his card a hiker cant hike his money.

Any time means, 24 hours a day, 365 days a year we canwithdraw cash from our accounts.

Use this ATM card it can helps us to waste our time.

Ability to connect LAN to WAN.


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ATM Disadvantage

ATM is very expensive.

If we forget our PIN number we cant withdraw cash from ourAccount.

If we forget our PIN number and punch encryption number thanour card is logged.


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ATM ApplicationATMs are based on a PC embedded at the center of the machine. This PC connects to multiple

serial peripherals such as keypads, cameras, printers, cash dispensers, card readers, touch

screens, etc., as required by the particular application. This serial. Connection is made via

multipart serial cards or adapters which can provide up to 16 ports each. Low Profile PCI

boards are a particularly good choice for these applications, because their small size isadvantageous to the often limited space available in a typical ATM.


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ATM Problem ATM cards were first introduced in the mid-1960s in the United Kingdom, and in the late 1960s in

the United States. The number of ATMs has increased dramatically since. ATM users now annuallyconduct billions of financial transactions, mostly cash withdrawals. Where once one would find

ATMs only on bank premises, today one finds them almost everywhere-along sidewalks and inairports, grocery stores, shopping malls, nightclubs, and casinos. There are even mobile ATMs thatcan be set up at disaster sites or temporary entertainment venues like fairgrounds. Bankcustomers have come to expect that they can access their funds virtually any time and any place.To some extent, they have traded safety for convenience. ATM services are highly profitable forbanks, and banks aggressively market the use of ATM cards.

# Robberies at night cash depositories, at which cash can only be deposited, not withdrawn, aresufficiently similar to ATM robberies to make most of the responses similar. Hereafter, referencewill be made only to ATMs, but unless otherwise noted, all information applies equally to nightcash depositories.# ATMs that are off bank premises are usually more profitable for banks because they attract ahigher volume of non-bank customers, who must pay service fees. Unfortunately, customers usingoff premise ATMs are more vulnerable to robbery.# It has been estimated that in 1993, banks earned $2.55 billion in revenue from ATMs, saved

$2.34 billion in wages for tellers and netted a profit of $2 billion (Deitch 1994; De Young 1995).# With a little effort, most local police agencies could compile data on ATM robberies, but until theFBI's National Incident-Based Reporting System becomes standard, the Uniform Crime Reports willnot provide national data on the problem.


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# Most of the figures cited in the literature on ATM crime are from two surveys, conducted by the

Bank Administration Institute and the American Bankers Association in 1987 and 1989,

respectively.

Related Problems

Robbery at ATMs is only one of several related problems the police must address. Other problems

that call for separate analysis and responses, but which are not addressed in this .guide, include:

robbery of couriers who fill ATMs with cash, theft of personal identification numbers (PINs) (including theft by "shoulder surfing"), theft by fraudulent electronic transactions, theft of money from ATMs by bank/ATM service employees, burglary of ATMs (including theft of entire ATMs),

presence of homeless people sleeping in ATM vestibules, vandalism of ATMs, and

fraudulent use of ATM cards obtained from customers through dummy ATMs that keep their

cards.


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THANK YOU

case study on automated teller machine (atm)

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