Presentation on

SECURITY FEATURES OF ATM

Submitted By :
Abhisek Mishra
Roll No : 2m01
MCA (5th Sem.)
KIIT(DU)
ABOUT THE ATM:-
1. 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.

2. Many ATMs also allow to deposit cash or cheques,

transfer money between their bank accounts .

3. The World’s first ATM was installed in ENFIELD

town in the London on June 27, 1967 by Barclays
bank .
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 :-

1.The ATM is act as a data terminal. ATM has to

connect to or communicate through a host
computer .

2. The host computer in analogous to an Internet

service provider (ISP) .

3. The host computer is the gateway through which

all the various ATM network becomes available
to the user.
4. In ATM system customers authenticate
themselves by using a plastic card with a
magnetic stripe which is known as
“ATM CARD”.

5. The magnetic stripe encodes the customers

account number and a numeric password
which is known as PIN
(Personal Identification Number) .

6. The ATM prompts the user to insert the

card.

7. When the card is entered the customer

personal identification number (PIN) is
requested.
8. The customer inputs his or her PIN.

9. If the card is a valid card which can be

processed by the machine then control transfer
to next stages and prompts the user to either
transfer, deposit or withdrawal of cash.

10. If the number entered incorrectly several times

in a row most ATMs will retain the card as a
security precaution to prevent an unauthorized
users .

11. ATM reads and store customer’s data on a

smart card.
NETWORKING CONCEPT :-
1. Most ATMs are connected to authorization of
transaction by the card issuer or other authorizing
institution via the communication network.

2. Most host computers can support either leased-line

or dial-up machines.

3. Leased-line machines connect directly to the host

computer through a four-wire, point-to-point
dedicated telephone line.
4. Dial-up ATMs connect the host computer
through a normal phone line using a modem.

5. 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 :-

1. ATM contain secure crypto-processors, generally

within an IBM PC compatible host computer in a
secure enclosure .

2. The security of the machine relies mostly on the

integrity of the secure crypto-processor.

3. A crypto-processor is a type of processor which

process encrypted datas.
4. ATMs typically connect directly to their ATM
transaction processor via a modem over a dedicated
telephone line.

5. ATM machines runs with operating systems such as

Windows 2000 and Linux.

6. ATM transactions are usually encrypted with DES.

7. Most ATM are connected to inter-bank network.

GENERAL SECURITY:-

1.Modern ATM physical security concentrate on

denying the use of the money inside the machine to
a thief or a fraud using some fraud detection
techniques.

2.Another trend in ATM security is the fortified cash

dispenser is replaced with nothing more than a
paper-tape printer.

3.The customer request a withdrawal from the

machine which dispenses no money but merely
prints a receipt. The customer then takes the
receipt to a sales clerk and exchange it for cash.
4. 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.
5. By ensuring that you are the real card holder
it can reduce the risk of the frauds.
6. An additional security measure limits the total
amount of ATM withdrawal to some particular
amount.
7. This aims to reduce the amount of fraud
withdrawal.
 CARD PRESENT
CARD
REQUEST
PIN PIN
USER OK
ACC NO VALIDATE
TIME OUT PIN USER ACC. NO.
S
RETURN CARD SELECT
E
INCORRECT PIN SERVICE
C
INVALID CARD RE-ENTER PIN
U
R RETURN CARD

I
INCORECT PIN
T STOLEN CARD
RETURN CARD
Y RETAIN CARD
To provide security, ATM system follows three different
mechanism
1. Time out
2. Invalid card
3. Stolen 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 it is returned .
Stolen card :-
The card is recognized as a stolen card and is retained by
the machine.
DATABASE SECURITY :
1. The ATM keeps all the information about the user
and user’s account inside the centralized
database. Inside the database all the
information are stored in the form of tables
(objects) which are more secured than the
general file systems.

2.The database also provide locking mechanisms

to maintain safety and security of data.
NETWORK SECURITY :
The ATM network system provides the
following features.
1. Authentication :
The user is the one it claims to be.
2. Confidentiality :
Only authorized users can access the content
of the data.
3. Integrity :
The data is not be altered by the third party
during the transmission.
4. Non-repudiation (refuse to access) :
A user can’t deny the fact that it has accessed
a service or data.
ADDITIONAL FEATURES :
1. Verifications of identity :
Security system is able to establish and
verify the claimed identity of any actor in an ATM
network.
2. Protection of confidentiality :
Stored and communicate datas are confidential.
3. Strong accountability :
The entity can’t deny the responsibility of its
performed action as well as their effects.
4. Alarm reporting :
The security system able to generate alarm
notification about certain selected security related
events.
5. Audit :
When violations of security happens the system
is able to analyze the data relevant to security.
6. Security recovery :

The security system is able to recover from

successful or attempted failures of security.
PRECAUTIONS TO TAKE :-
1.Treat your ATM card like cash. Always keep your
card in a safe place.
2. Keep your secret code as secret. Don’t use date
of birth, address ,phone number as your PIN.
3. Take your receipt on every ATM transaction.
Don’t leave it at or near the ATM counter.
4. Report a lost or stolen card at once.
5. ATM users should seek out a machine that is
located in a well-lighted area.
ANY QUESTIONS ?
THANK YOU.