Security of automated teller machines

Automated teller machines (ATMs) are targets for fraud, robberies and other security breaches.

In the past, the main purpose of ATMs was to deliver cash in the form of banknotes, and to debit a corresponding bank account.

However, ATMs are becoming more complicated and they now serve numerous functions, thus becoming a high priority target for robbers and hackers.

As an alternative, unskilled robbers threaten bank patrons with a weapon to loot their withdrawn money or account.

The alternative way to credit card fraud is to identify the PIN directly with devices such as cameras concealed near the keypad.

The validation of on-line PIN occurs if the terminal in question is connected to the central database.

Offline PIN validation is now obsolete, as the ATMs are connected to the central server over protected networks.

There are different transaction methods used in shared ATMs with regards to the encipherment of PIN, and message authentication among them is so-called "zone encryption".

In this method, a trusted authority is appointed to operate on behalf of a group of banks so they could interchange messages for ATM payment approvals.

Electronic funds transfer systems have three components; which are communication links, computers, and terminals (ATMs).