One of the primary concerns banks and financial institutions face is ATM security. With criminals becoming more prominent in the financial industry, banks especially need to install stronger safety precautions not only for their business, but to also protect their customers’ personal information and bank accounts. The following article will discuss security and fraud prevention for ATM networks and how banks can enhance their security measures.
Security And Fraud Prevention
In relation to ATM networks, the biggest concerns are security and fraud prevention. In fact, the efficiency of a financial institution’s security procedures greatly affects customer satisfaction and trust. A recent survey revealed that the majority of respondents felt that ATMs are generally secure, but there could still be more done to enhance security measures.
“It is essential that the ATM network is fully secure from every conceivable type of attack whether it is from inside the bank or an external attack. Security is now receiving an intense amount of focus from both the deployers and the technology providers to make sure that ATMs are impenetrable against any type of attack. This is critical in maintaining consumer confidence,” spoke Michel Denis, KAL’s Chief Technology Officer.
Attacks on ATMs also can be categorized depending on their location. On-site attacks can occur at a free standing ATM that is normally adjacent to the local branch office. Off-site attacks typically happen at ATMs installed at shopping centers, airports, and gas stations.
It is also essential to safeguard the security of the cardholder who has the potential to be robbed while withdrawing cash at an ATM, while at the same time respecting their privacy. An example of a solution to prohibit such attack from happening could be installing IP video surveillance for the protection of the individual in addition to warding off criminals from attacking.
Here are some statistics on ATM software and security:
How Can Banks Enhance Security Measures?
In addition to ATM security, banks can do their part to enhance security prevention for other hardware and software-related products in various ways. For example, over 37% of banks plan to install anti-skimming devices to protect themselves in the next year. Additionally, 33% of banks plan to implement lockdown of ports (USB, Keyboard, Mouse) in the next year and 31% are using hard disk encryption for defense against fraud.
Banks can also apply EMV as a card security standard starting this fall to help avert fraud attacks from occurring. EMV (Europay, MasterCard, Visa) is a fraud-reducing technology helped to protect issuers, merchants and consumers against losses from the use of counterfeit or stolen payment cards at the point-of-sale. With EMV technology, cardholder information is stored in a chip that is embedded in the card.
“For many customers, the experience at the ATM will change with EMV. While they will likely learn quickly, there could be initial confusion. Because different ATM operators may handle the EMVexperience differently, customers may be confused as they use ATMs outside their current bank’s ATM network,” spoke a representative from a major U.S.-based bank for ATM Marketplace.
Although not yet heavily used in the U.S. due to costs and consumer liability, biometrics authentication has proven to be successful in the international markets with financial institutions. Biometric authentication is a form of identification that uses physical human characteristics, such as fingerprint recognition or eye scans. It has been widely recognized as being the most foolproof and the hardest for criminals to spoof. Banks in the U.S. might be able to integrate biometric authentication for ATM’s in the near future, as funding for this feature has become prevalent. ABI Research noted that in 2015, $3.1 billion in global revenue is projected for biometrics, specifically in the enterprise and consumer areas.
“Biometrics is becoming an urgent need due to the additional security it provides, along with card-less ATM withdrawals. Also, just as smartphones are proving to be an alternative to cards at the point-of-sale, they are likely to do the same for ATMs,” spoke Rohan Muttiah.
Banks will indeed need to continue to invest in new safety products and measures to prevent fraud from occurring, specifically for ATM’s. Not only will secure ATM’s directly impact operational efficiency, they will also influence customer confidence and trust for financial institutions. As a result, banks can enhance their security standards by implementing new security devices, apply EMV towards their card security standard, and research more on biometric authentication and the benefits it could offer for the future.