Escolar Documentos
Profissional Documentos
Cultura Documentos
CONTENTS
1. INTRODUCTION 6
2. HISTORY OF AN ATM 8
3. ATM 11
5. WHERE IT IS USED 21
8. CONCLUSION 41
9. BIBLIOGRAPHY 43
2
1. Introduction
3
could be accounted for in most cases. Further, a positive visual match would cause
the live image to be stored in the database so that future transactions would have a
broader base from which to compare if the original account image fails to provide a
match - thereby decreasing false negatives. When a match is made with the PIN but
not the images, the bank could limit transactions in a manner agreed upon by the
customer when the account was opened, and could store the image of the user for
later examination by bank officials. In regards to bank employees gaining access to
customer PIN for use in fraudulent transactions, this system would likewise reduce
that threat to exposure to the low limit imposed by the bank and agreed to by the
customer on visually unverifiable transactions. In the case of credit card use at
ATMs, such a verification system would not currently be feasible without creating
an overhaul for the entire credit card issuing industry, but it is possible that positive
results achieved by this system might motivate such an overhaul. The last
consideration is that consumers may be wary of the privacy concerns raised by
maintaining images of customers in a bank database, encrypted or otherwise, due to
possible hacking attempts or employee misuse. However, one could argue that
having the image compromised by a third party would have far less dire
consequences than the account information itself. Furthermore, since nearly all
ATMs videotape customers engaging in transactions, it is no broad leap to realize
that banks already build an archive of their customer images, even if they are not
necessarily grouped with account information.
4
2. History of an ATM
5
Don Wetzel:
An automatic teller machine or ATM allows a bank customer to
conduct their banking transactions from almost every other ATM machine in the
world. Don Wetzel was the co-patentee and chief conceptualist of the automated
teller machine, an idea he said he thought of while waiting in line at a Dallas bank.
At the time (1968) Wetzel was the Vice President of Product Planning at Docutel,
the company that developed automated baggage-handling equipment. The other two
inventors listed on the patent were Tom Barnes, the chief mechanical engineer and
George Chastain, the electrical engineer. It took five million dollars to develop the
ATM. The concept of the modern ATM first began in 1968, a working prototype
came about in 1969 and Docutel was issued a patent in 1973. The first working
ATM was installed in a New York based Chemical Bank. (Editor’s note: There are
different claims to which bank had the first ATM, I have used Don Wetzel's
reference.)
“No, it wasn't in a lobby, it was actually in the wall of the
bank, out on the street. They put a canopy over it to protect it from the rain and the
weather of all sorts. Unfortunately they put the canopy too high and the rain came
under it. (Laughing) One time we had water in the machine and we had to do some
extensive repairs. It was a walkup on the outside of the bank. That was the first one.
And it was a cash dispenser only, not a full ATM... We had a cash dispenser, and
then the next version was going to be the total teller (created in 1971), which is the
ATM we all know today -- takes deposits, transfers money from checking to
savings, savings to checking, cash advances to your credit card, takes payments;
things like that. So they didn't want just a cash dispenser alone." - Don Wetzel on the
first ATM installed at the Rockville Center, New York Chemical Bank from a
NMAH interview.
6
The first ATMs were off-line machines, meaning money was not automatically
withdrawn from an account. The bank accounts were not (at that time) connected by
a computer network to the ATM. Therefore, banks were at first very exclusive about
who they gave ATM privileges to. Giving them only to credit card holders (credit
cards were used before ATM cards) with good banking records. Wetzel, Barnes and
Chastain developed the first real ATM cards, cards with a magnetic strip and a
personal ID number to get cash. ATM cards had to be different from credit cards
(then without magnetic strips) so account information could be
included.
The ATM is now 30 years old.
7
3. ATM
ATM Machine
(Automatic Teller Machine) A banking terminal that accepts
deposits and dispenses cash. ATMs are activated by inserting a cash or credit card
that contains the user's account number and PIN on a magnetic stripe. The ATM
calls up the bank's computers to verify the balance, dispenses the cash and then
transmits a completed transaction notice. The word "machine" in the term "ATM
machine" is certainly redundant, but widely used.
An automated teller machine (ATM) is a data terminal with
two input and four output devices. Similar to many other data terminals, the ATM
must connect and communicate through a host network. The host network may be
compared to an Internet Service Provider in that it is the gateway through which all
the various ATM networks become available to the cardholder.
1. A card reader that captures information stored on the magnetic strip on the back of
the ATM debit or credit card.
2. A keypad that allows the card holder to inform the bank of the required
transaction (cash withdrawal, transfer of funds, balance inquiry, etc.) and the
required amount.
8
The four output methods in an ATM are:
1. A speaker that provides the cardholder with audio feedback when a key is pressed.
2. A display screen that prompts the cardholder through each step of the transaction
process.
3. A printer that provides the cardholder with a receipt.
4. A safe and cash dispensing mechanism.
9
10
3.1 Networking
Most ATMs are connected to inter bank network enabling
people to withdraw and deposit money from machines not belonging to the bank
where they have their account. This is a convenience, especially for people who are
travelling: it is possible to make withdrawals in places where one's bank has no
branches, and even to withdraw local currency in a foreign country, often at a better
exchange rate than would be available by changing cash.
ATMs rely on Authorization of a Transaction by the card
issuer or other authorizing institution via the communications network.
11
regardless of whether the user is a customer of that bank. Machines in garages,
nightclubs and other venues do charge, however.
12
3.4 Reliability
ATMs are generally reliable, but if they do go wrong
customers will be left without cash until the following morning or whenever they
can get to the bank during opening hours. Of course, not all errors are to the
detriment of customers; there have been cases of machines giving out money
without debiting the account, or giving out higher value notes as a result of incorrect
denomination of banknote being loaded in the money cassettes. Errors that can
occur may be mechanical (such as card transport mechanisms; keypads; hard disk
failures); software (such as operating system; device driver ; application);
communications ; or purely down to operator error.
3.5 Security
Early ATM security focused on making the ATMs
invulnerable to physical attack; they were effectively safes with dispenser
mechanisms. A number of attacks on ATMs resulted, with thieves attempting to
steal entire ATMs by ram-raiding.
Modern ATM physical security, like other modern money-
handling security, concentrates on denying the use of the money inside the machine
to a thief, by means of techniques such as dye markers and smoke canisters. This
change in emphasis has meant that ATMs are now frequently found free-standing in
places like shops, rather than mounted into walls.
Another trend in ATM security leverages the existing
security of a retail establishment. In this scenario, the fortified cash dispenser 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 this receipt to a nearby sales clerk, who then
exchanges it for cash from the till.
13
ATM transactions are usually encrypted with DES (Data
Encryption Standard) but most transaction processors will require the use of the
more secure Triple DES by 2005.
There are also many “phantom withdrawals "from ATMs,
which banks often claim are the result of fraud by customers. Many experts ascribe
phantom withdrawals to the criminal activity of dishonest insiders. Ross Anderson,
a leading cryptography researcher, has been involved in investigating many cases of
phantom withdrawals, and has been responsible for exposing several errors in bank
security.
There have also been a number of incidents of fraud where
criminals have used fake machines or have attached fake keypads or card readers to
existing machines. These have then been used to record customers' PINs and bank
account details in order to gain unauthorized access to their accounts.
A bank is always liable when a customer's money is stolen
from an ATM, but there have been complaints that banks have made it difficult to
recover money lost in this way. In some cases, bank fraud occurs 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. Individuals
who unknowingly use such ATMs are probably never tried, but those who withdraw
a second time are usually prosecuted.
14
3.6 ATM fraud
In the early 2000s, ATM-specific crimes became common.
These had two common forms. In the low-tech form, the user's PIN is observed by
someone watching as they use the machine; they are then mugged for their card by a
second person, who has taken care to stay out of range of the ATM's surveillance
cameras. However, this offers little advantage compared to simply mugging the
victim for their money, and carries the same risks to the offender as other violent
crimes. By contrast, the most common high-tech modus operandi involves the
installation of a magnetic card reader over the real ATM's card slot, and the use of a
wireless surveillance camera to observe the user's PIN. Although the latter fraud
would have seemed like something from a spy novel until recently, the availability
of low-cost commodity wireless cameras and card readers has made it a relatively
simple form of fraud, with comparatively low risk to the fraudsters.
As of 2005, banks are working hard to develop
countermeasures for this latter kind of fraud, in particular by the use of smart cards
which cannot easily be read by un-authenticated devices, and by attempting to make
the outside of their ATMs tamper evident.
15
4. Need of Facial Recognition at ATM
16
In regards to bank employees gaining access to customer PIN
for use in fraudulent transactions, this system would likewise reduce that threat to
exposure to the low limit imposed by the bank and agreed to by the customer on
visually unverifiable transactions.
Using the facial recognition technology, system can search
through facial images in the database for duplicates at the time of access.
Potential applications include ATM and check-cashing security. The software is able
to quickly verify a customer's face. After the user consents, the ATM or check-
cashing kiosk captures a digital Photo of the customer. The software then generates a
face print of the photograph to protect customers against identity theft and fraudulent
transactions. By using facial recognition software, there's no need for a picture ID,
bank card or even personal identification number (PIN) to verify a Customer’s
identity can be skipped.
17
5. Where Facial Recognition Technology is Used
18
verify a customer's identity. Many people who don't use banks use check cashing
machines. Facial recognition could eliminate possible criminal activity.
This biometric technology could also be used to secure your files. By
mounting a Webcam to your computer and installing the facial recognition software,
your face can become the password you use to get into your computer. IBM has
incorporated the technology into A, T and X series ThinkPad.
19
Facial recognition software can be used to
Lock your computer.
20
you picture when you are entirely unaware of the camera. As with many developing
technologies, the incredible potential of facial recognition comes with drawbacks.
21
Facial recognition software is designed to
Pinpoint a face and measure its features
22
6. How Facial Recognition Systems Works
6.1.1 Basics:
Facial recognition analyzes the characteristics of a person's
face images input through a digital video camera. It measures the overall facial
structure, including distances between eyes, nose, mouth, and jaw edges. These
measurements are retained in a database and used as a comparison when a user
stands before the camera. This biometric has been widely, and perhaps wildly,
touted as a fantastic system for recognizing potential threats (whether terrorist, scam
artist, or known criminal) but so far has been unproven in high-level usage. It is
currently used in verification only systems with a good deal of success.
Face identification can be an important alternative for
selecting and developing optimal biometrical system. Its advantage is that it does not
require physical contact with image capture device (camera). Face identification
system does not require any advanced hardware; it can be used with existing image
capture devices (web cams, security cameras etc.).
Face is not so unique as fingerprints and eye iris, so its
recognition reliability is slightly lower. However, it is still suitable for many
applications, taking into account its convenience for user. It can also be used
together with fingerprint identification or another biometrical method for developing
more security critical applications.
Multi-biometrical approach is especially important for
identification (1: N) systems. Identification systems are very convenient to use
because they do not require any additional security information (smart cards,
23
passwords etc.). On the other hand, 1: N-matching routine usually accumulates False
Acceptance probability, which may become unacceptable big for applications with
large databases. Using face identification as additional biometrics can dramatically
decrease this effect.
Multi-biometrical approach also usually helps in situations
where certain biometric feature is not optimal for special customers groups. For
example, hard workers may have raw fingerprints, which may increase false
rejection rate if fingerprint identification was used alone. Thus, face identification
should be considered as a serious alternative in biometrical or multi-biometrical
systems developing.
The example below shows the main steps in using facial
recognition to identify an individual in a controlled environment:
Identification Steps:
24
This string can then be matched against pre-coded images in
a database to determine if there's a match. As the shot can be taken with a standard
camera from a reasonable distance, facial recognition is the only biometric that does
not require the cooperation or even knowledge of the individual for the process to
work. However the implication of this is that the image is subject to external factors,
particularly lighting and facial angles.
25
• Distance between eyes
• Width of nose
• Depth of eye sockets
• Cheekbones
• Jaw line
• Chin
26
The idea isn't necessarily to do away with cards so much as to
raise the level of security. Use something for identification that can't be lost, stolen
or forgotten and maybe there will be less fraud. The push to put biometric ATMs
and cash transaction kiosks within your reach is small, but gaining momentum.
Mark Radke of Diebold, one of the biggest ATM
manufacturers in the United States, says the emergence of biometrics has been slow
in part because of the technology and partly due to slow overall acceptance by the
public. But that's changing, he says, to the point where credit unions, which have
been more aggressive than banks about using biometrics, see the new technology as
a customer draw.
Janet Harris, CEO of Riverside Health System Employees
Credit Union in Newport News, Va., agrees. Her credit union has had biometric
"kiosks" since July 1998.They use a fingerprint scan for identification – something
some industry surveys have shown customers may equate with identifying criminals.
"The fingerprint has never been perceived here as criminal,"
says Harris. "In reality, we're not keeping the fingerprint anyway. The scan is
reading the ridges of your finger and converting them into a numeric algorithm.
Newport News is a very heavy military security area -- they're all used to a lot of
security. Plus this tends to be a younger group of people and they're OK with
technology."
The first time a customer uses the kiosk, they're asked for
their account number and their fingerprint. The customer then shows picture ID to an
employee who completes the registration process. After that, the customer can lose
the old ATM card and forget the PIN or hold on to it if they want, because most
biometric machines also accept cards.
27
If, one day, a customer steps up to the kiosk and it doesn't
accept her fingerprint, a friendly sign appears stating, "I'm sorry, you don't appear to
be yourself today." The kiosk, which the credit union calls "Money Buddy," then
offers advice for a better fingerprint scan, such as rubbing your thumb on your face
to get a little oil on it if you just washed your hands and they're too dry.
Harris says more than 1,000 of the credit union's 3200
customers have registered their fingerprints. The kiosks do a lot more than spit out
money. Customers can print a check payable to anyone, print statements, transfer
funds, apply for loans and even send the bank e-mails.
If you're the gambling type, there's a good chance you'll be
using a biometric machine if you need some quick cash.
User faces the camera, standing about two feet from it. The
system will locate the user's face and perform matches against the claimed identity
or the facial database. It is possible that the user may need to move and reattempt the
verification based on his facial position. The system usually comes to a decision in
less than 5 seconds. To prevent a fake face or mold from faking out the system,
many systems now require the user to smile, blink, or otherwise move in a way that
is human before verifying.
28
The example below shows the main steps in using facial recognition to identify an
individual in a controlled environment:
Identification Steps:
29
While different developers have used different approaches to
developing facial recognition technology, the principle is the same as for other
biometrics, i.e. the patterns within the object are identified and transformed
mathematically into a code. In the case of a face, features such as the eyes and tip of
the nose are used as anchor points, and the relative location of numerous other facial
characteristics to them is determined. This information is then transformed into a
digital string. This string can then be matched against pre-coded images in a
database to determine if there's a match. As the shot can be taken with a standard
camera from a reasonable distance, facial recognition is the only biometric that does
not require the cooperation or even knowledge of the individual for the process to
work. However the implication of this is that the image is subject to external factors,
particularly lighting and facial angles.
30
6.3 VeriLook - Face Identification Technology
31
method or using the multi-biometrical system can help to support these, often
discrepant, requirements.
Face identification can be an important alternative for
selecting and developing optimal biometrical system. Its advantage is that it does not
require physical contact with image capture device (camera). Face identification
system does not require any advanced hardware, it can be used with existing image
capture devices (web cams, security cameras etc.).
Face is not so unique as fingerprints and eye iris, so its
recognition reliability is slightly lower. However, it is still suitable for many
applications, taking into account its convenience for user. It can also be used
together with fingerprint identification or another biometrical method for developing
more security critical applications.
Multi-biometrical approach is especially important for
identification (1:N) systems. Identification systems are very convenient to use
because they do not require any additional security information (smart cards,
passwords etc.). On the other hand, 1:N-matching routine usually accumulates False
Acceptance probability, which may become unacceptable big for applications with
large databases. Using face identification as additional biometrics can dramatically
decrease this effect. Multi-biometrical approach also usually helps in situations
where certain biometric feature is not optimal for special customers groups. For
example, hard workers may have raw fingerprints, which may increase false
rejection rate if fingerprint identification was used alone.
Thus, face identification should be considered as a serious
alternative in biometrical or multi-biometrical systems developing.
6.4 Algorithm
32
VeriLook 2.0 face recognition algorithm implements
advanced face localization, enrollment and matching using robust digital image
processing algorithms:
33
7. Competition Among ATM Owners
34
customers in general. For nonbanks that own ATMs, the competition focuses more
on placing ATMs in locations that capture ATM users who are willing to pay for the
service. But all ATM owners--banks and others--have to compete for transactions,
because if no one uses the machine, the investment will lose money.
All other things being equal, a bank with more ATMs is more
valuable to customers than a bank with fewer machines, especially now that
surcharges have become more widespread. Consequently, ATMs and ATM fees
form part of a bank's strategy to attract customers and additionally security is also
the main factor by which the machine usage can be increased. And, therefore, the
additional things which are implemented at the ATM’s increase the security. For
example, most banks will not impose surcharges on their own customers for fear of
driving them away and most ATM’s abroad use additional Facial Recognition
System to give additional security to there customers. However, large banks with
large numbers of proprietary ATMs typically find it to their strategic advantage to
impose high surcharges for foreign transactions. By contrast, in response to the
spread of surcharges, an increasing number of smaller and medium-sized banks--
banks that presumably have fewer ATMs to offer their customers--have had to drop
the foreign fees they were charging their cardholders who used other banks' ATMs,
35
presumably in response to cardholders' complaints at being double-charged. In 1996,
only 20 percent of banks did not have foreign fees. By 1997, 33 percent of banks
charged no foreign fees on cash withdrawals.
What effect do ATM surcharges have on the ability of banks
to attract and retain deposits? One way to answer that question is to compare the
experience of banking institutions in the eight states that passed laws either
prohibiting network surcharge bans or explicitly permitting ATM surcharging by
1995 with the experience of banks in the rest of the United States. If ATM
surcharging induced people to move their accounts to banks that owned large
numbers of ATMs, one would expect to see a greater increase in the concentration of
deposits in banks in those states allowing surcharging than in the rest of the United
States during the same time frame. And a greater-than-average increase in
concentration has, indeed, resulted. However, the states allowing surcharging started
from a lower level of bank deposit concentration than did the nation as a whole.
Consequently, the data are not conclusive with respect to the
change that has occurred.
36
ATMs IN OPERATION, 1973-1997
Even before the nationwide spread of ATM surcharges, big banks were growing at
the expense of small banks. In 1991, commercial banks with $1 billion or more in
assets held 67 percent of all deposits: in 1995, they held 72 percent, and in 1997,
their share was 76 percent. The smallest commercial banks, those with assets of
$100 million or less, experienced shrinkage in their share of deposits nationally,
which went from 12 percent in 1991 to 9 percent in 1995 and 7 percent in 1997.
Moreover, the Riegle-Neal Interstate Banking and Branching Efficiency Act took
effect in the last quarter of 1995. The act expanded the ability of banks and bank
holding companies to operate across state boundaries and may have contributed to
the climbing rate of concentration in the industry.
37
entrants to the market, competition may force fees to drop. Nevertheless, some ATM
deployers may be able to continue to charge high fees in certain market segments.
(Market segments may be based on location, such as airports or recreation areas, or
on cardholders' willingness to pay.)
38
that foreign fees and surcharges are set independently by two different market
participants.
8. Conclusion
39
The current flux in the ATM market is the result not
only of the advent of ATM surcharging but of shifts in other charges associated with
ATMs and in usage patterns. For example, foreign fees are dropping in some cases,
and the average number of transactions per ATM has started to decline. In such
unsettled circumstances, the effects of any legislation or regulatory change may be
difficult to determine in advance and could produce unintended effects.
Moreover, ATM’s with extra security like Facial Recognition
System are increasing widely. This system invites fraudulent attempts through stolen
cards, badly-chosen or automatically assigned PIN, cards with little or no encryption
schemes, employees with access to non-encrypted customer account information and
other points of failure. The main issues faced in developing such a model are
keeping the time elapsed in the verification process to a negligible amount, allowing
for an appropriate level of variation in a customer's face when compared to the
database image, and that credit cards which can be used at ATMs to withdraw funds
are generally issued by institutions that do not have in-person contact with the
customer, and hence no opportunity to acquire a photo.
The question which arises here is that suppose if anybody
who is not in an condition to go to the ATM machine and not in a position to access
his account and suppose he is asking someone else whom he trust to withdraw
money or something else, likewise, cannot access his account. Although, he has got
the card and the PIN but the only thing is the face which is not recognized .The
remedy to this issue is:
When a match is made with the PIN but not the images, the bank could
limit transactions in a manner agreed upon by the customer when the account was
opened, and could store the image of the user for later examination by bank officials.
In regards to bank employees gaining access to customer PIN for use in fraudulent
transactions, this system would likewise reduce that threat to exposure to the low
40
limit imposed by the bank and agreed to by the customer on visually unverifiable
transactions.
9. Bibliography
REFERENCES
41
• Daugman J (2003) "Demodulation by complex-valued wavelets for
stochastic pattern recognition." Int'l Journal of Wavelets, Multi-resolution
and Information Processing, vol. 1, no. 1, pp 1-17.
42
• Steven J (2001) "Brain metaphor and brain theory." Chapter 2 in
Philosophy and the Neurosciences, edited by W. Bechtel et al. Oxford:
Blackwell Publishers.
• http:///www.atmmachine.com/atmmachine.html
• www.bls.gov/oco/ocos186.html
• www.diebold.com/solutions/atms/default.htm
• www.encyclopedia.com/html/a1/autotel.asp
• www.legis.state.wi.us/lrb/pubs/ttp-10-2000.html
• www.answers.com/topic/automatic-teller-machine
• www.infoplease.com/ce6/sci/AO805407.html
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