FINAL PRESENTATION

ATM: “An employee that never shows

up late, never complains, always makes
money”
TOPIC: Automated Teller Machine
(ATM)
 Group Members

 Sehrish Naqvi 070753

 Nandana Zubair 070737
 Ain-ul-fatima 060156
 Raza Mustafa 070742
 Introduction
Table of Contents

History

Technology

Location

Statistics – why so imp?

Mechanism

Integrity

Fraud

Benefits and Risks

Conclusion

 Introduction
 ATM stands for Automated teller machine
 It is a computerized telecommunications device that
provides the clients of a financial institution with
access to instant money in a public space without the
need for a cashier, human clerk or bank teller.
 The customer is identified by inserting a plastic
ATM card with a magnetic stripe or a plastic smart
card with a chip that contains a unique card number
and some security information, security is ensured
by PIN number.
 Customers can access their bank accounts:
 to make cash withdrawals
 check their account balances
 purchase cell-phone prepaid credit

 The currency being withdrawn can be

converted at a wholesale exchange rate..
 Cont……
 Other names for this best possible exchange rate
for foreign travelers:
 Automated Transaction Machine
 Automated banking machine cash-point (in Britain)
 money machine
 bank machine
 cash machine
 hole-in-the-wall .
 History
 The idea of self-service in retail banking developed
through independent and simultaneous efforts in
Japan, Sweden, the United States and the United
Kingdom.
 In the USA, Luther George Simjian has been wrongly
credited with developing and building the first cash
dispenser machine.
 There is no evidence to suggest that Simjian worked
in this device before 1959 while his 132nd patent was
first filled in June 30, 1960
 Cont……

 A first cash dispensing device was used in

Tokyo in 1966.

 ATMs first came into use in December 1972

in the UK .
 ATM technology

 ATM technology can be used in the following

types of networking environments:
 Private workgroup or enterprise networks

 Large public networks

 Hybrid combinations of both private and public

networks
 Cont…..

 ATM technology is rapidly being implemented in these

networking environments to enable the seamless interconnection
of local area networks (LANs) and wide area networks (WANs).

 ATM technology enables the switching and transport of multiple

traffic types at comparatively high speeds in a single switching
fabric.
 ATM Cell Relay Technology

 ATM cell relay technology typically supports

multiple traffic types (data, voice, and video) while
addressing many of the pressing concerns of users
of both public and private networks, such as the
following:
 Need for flexibility and diversity of communications
applications
 Need to integrate network services
 Need to accommodate future network
growth/enhancement
 Cont…..
 Three major communications technologies are in use in
industry and commerce today:
 Data Communication
 Telecommunication
 ATM cell relay

 ATM derive from two primary attributes:

 ATM supports very high-speed interfaces in a single data
transmission and switching fabric.
 ATM supports the multiplexing traffic types.
 Location

 ATMs are placed not only near or inside the

premises of banks, but also in locations such
as shopping centers/malls, airports, grocery
stores, petrol/gas stations, restaurants, or any
place large numbers of people may gather.
 Statistics(why having ATM is
better?)
 Increase costumer traffic:
 people do not go to the bank as they used to
 they look for retail locations like gas stations,
convenience stores etc
 Increase costumers spending:
 According to recent 7-11 study, ATM customers spend
25% more than non-customers
 Cont…

 Decreased credit card fees:

 Business with ATMs see a reduction in credit
card processing fees of 20% to 30%
 Surcharge Revenues:
 Average surcharge revenue nationwide is
$2.00.
 $3.00 and higher in certain areas and
businesses like bars and nightclubs.
 Cont…

 By adding it all up:

 For example:200 customers/day
 Industry stats:5-10% will use ATM
 Increased spending:
 o Average purchase = $10
 o ATM customers will spend $2.50 more
 o $2.50 X 5 customers = $12.50
 o $12.50 per day in increased spending
 o $12.50 X 30 = $375 per month
 o $375 X 12 months = $4500 per year
 Cont…
 Decreased credit card fees:
 o $500 in cc processing fees – 25% = $125 saved per
month
 $125 X 12 months = $1500 per year
 Surcharge Revenue:
 o $2.00 X 5 = $10 per day
 o $10 X 30 = $300 per month
 o $300 X 12 = $3600 per year
 o $4500 increased in spending
 o $1500 savings in cc processing fees
 o $3600 in surcharge revenue
 $9600 in yearly savings and revenue
 Mechanism

 Hard-ware: ATMs have moved away from custom hardware

architectures using microcontrollers and/or application-
specific integrated circuits to adopting the hardware
architecture of a personal computer, such as, USB connections
for peripherals, Ethernet and IP communications, and use
personal computer operating systems.
 The vault of an ATM is within the footprint of the device
itself and is where items of value are kept. Scrip cash
dispensers do not incorporate a vault.
 Cont…..
 Mechanisms found inside the vault may include:
 Dispensing mechanism
 Deposit mechanism including a Cheque Processing
Module and Bulk Note Acceptor
 Security sensors
 Locks
 Journaling systems; many are electronic or a solid-
state device which accrues all records of activity
including access timestamps, number of bills
dispensed, etc.
 Integrity

 In ATM there are three types of integrity`s

process are present:
 Transactional secrecy and integrity
 Customer identity integrity
 Device operation integrity
 Fraud
 As with any device containing objects of value,
ATMs and the systems they depend on to
function are the targets of fraud.
 Fraud against ATMs and people's attempts to use
them takes several forms.
 The first known instance of a fake ATM was
installed at a shopping mall in Manchester,
Connecticut in 1993.
 Fraud Cases

 In some cases, bank fraud could occur at ATMs

whereby the bank accidentally stocks the ATM
with bills in the wrong denomination, therefore
giving the customer more money than should be
dispensed. The result of receiving too much
money may be influenced on the card holder
agreement in place between the customer and
the bank.
 Cont……

 ATM behavior can change during what is called

"stand-in" time, where the bank's cash dispensing
network is unable to access databases that contain
account information In order to give customers access
to cash, customers may be allowed to withdraw cash
up to a certain amount that may be less than their
usual daily withdrawal limit, but may still exceed the
amount of available money in their account, which
could result in fraud.
Cont….
 ATM Benefits

 ATM technology offers the following primary benefits:

 Bandwidth efficiency
 Scalability
 Application transparency
 Networking Advantages
 ATM allows the network to be tailored to the user's needs,
rather than forcing the user's applications to fit the
network's characteristics.
 Cont…
 ATM affords the following user benefits:
 Provides timely access to network resources
 Supports message traffic of variable length
 Provides higher transmission speeds
 Provides self-routing capabilities for multiple traffic types
 Supports new data communications and telecommunications applications
 Offers guaranteed network access for voice and video applications
 Provides protection mechanisms against network congestion conditions
 ATM Risk Factors

 There’s a lot of confusion about the

differences between ATM cards, debit cards
and credit cards since all three seem to be
used interchangeably. Although these three
types of cards are similar, there are some
fundamental differences that may be the key
to understanding just how safe you really are
when you make a purchase.
 Cont….
 The primary danger with an ATM only card
lies in having your actual card stolen. If that
happens, a thief can travel to the closest
ATM machine and withdraw the maximum
amount allowed from your bank account.
 The risk factor increases when ATM only
cards are used at non-bank ATMs.
 Cont…
 Debit cards however, pose more complex problems and
higher risks. Because you swipe your card at countless
retailers, and your information is stored inside of every
machine you swipe your card at, you are far more
vulnerable to becoming a victim of identity theft.
 Credit cards pose their own risks and dangers when it
comes to identity theft. Credit card information can be
compromised and misused in a similar manner as debit
cards. Swiping your card for purchases is what puts you at
greatest risk.
 Conclusion

What You Should Do?

Thank you

Q&A