A PRESENTATION ON the SECURITY

FEATURE OF ATM

ABOUT THE ATM (automated teller machine)

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

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

PARTS OF THE ATM SYSTEM:

1. Card Reader

2. Keypad

3. Speaker

4. Display Screen

5. Receipt Printer

6. Cash dispenser

7. Deposit slot

8. Screen buttons

HOW ATM WORKS:

The ATM acts as a data terminal. ATM has to connect to or communicate through a host computer.

The host computer is analogous to an Internet Service Provider(ISP).

The host computer is the gateway through which all the various ATMs become available to the user.

Contd..

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

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

The ATM prompts the user to insert the card. When the card is entered the customer’s PIN is

requested.

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The customer inputs his or her PIN. If the card is a valid card which can be processed by

the machine then it prompts the user to either transfer, deposit or withdraw cash.

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

ATM needs and stores customer’s data on a smart card.

NETWORKING CONCEPT:

ATMs rely on authorization of a financial transaction by the card issuer or other authorizing institution via the communications network.

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

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

Contd..

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

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

Hardware and Software:

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

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

A crypto-processor is a type of processor which processes encrypted data.

Contd..

ATM typically connects directly to their ATM transaction processor via a modem over a dedicated telephone line.

ATM machines runs with operating systems such as Windows 2000 and Linux.

ATM transactions are usually encrypted with DES.

Most ATM are connected to inter-bank network.

GENERAL SECURITY:

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

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

The customer requests a withdrawal from the machine which dispenses no money but merely prints a receipt. The customer then takes the receipt to the sales clerk and then exchange it for cash.

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Some ATM system provides the security that if you withdraw certain amount per day or you deposit, a prompt on the screen will ask you to enter your birthday and month to confirm your identity.

By ensuring that you are the real card holder it can reduce the risks of the frauds.

An additional security measure limits the total amount of the ATM withdrawal to some particular amount.

This aims to reduce the amount of fraud withdrawal.

SECURITY FEATURE:

To provide security, ATM systems follows three different mechanisms:

Time-out Invalid cardStolen card

• Time out: The customer may fail to enter the PIN within the allowed time limit then the card is returned.

• Invalid card: The card is not recognized and is returned.• Stolen card: The card is recognized as a stolen card and

is retained by the machine.

DATABASE SECURITY:

The ATM keeps all the information about the user and the user’s account inside the centralized database. Inside the database all the information are stored in the form of tables(objects) which are more secure than the general file systems.

The database also provide locking mechanisms to maintain safety and security of data.

NETWORK SECURITY:

The ATM network system provides the following features: Authentication: The user is the one it claims

to be.

Confidentiality: Only authorized users can access the content of the data.

Integrity: The data is not to be altered by the third party during the transmission.

Contd..

Non-repudiation(refuse to access): A user cant deny the fact that it has accessed a service or data.

ADDITIONAL FEATURES: Verifications of identity: Security system is

able to establish and verify the claimed identity of any actor in an ATM network.

Protection of confidentiality: Stored and communicated data are confidential.

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Strong accountability: The entity can’t deny the responsibility of its performed action as well as their effects.

Alarm reporting: The security system is able to generate alarm notification about certain selected security related events.

Audit: When violations of security happens the system is able to analyze the data relevant to security.

Contd..

Security recovery:

The security system is able to recover from successful or attempted failures of security.

PRECAUTIONS TO TAKE:

Treat your ATM card like cash. Always keep your card in a safe place.

Keep your secret code as a secret. Don’t use date of birth, address, phone number as your PIN.

Take your receipt on every ATM transactions. Don’t leave it or near the ATM counter.

Report a lost or stolen card at once.ATM user should seek out a machine that is

located in a well-lighted area.

THANK YOU