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Automated Teller Machine or Automated Banking Machine is a computerized

telecommunication device that provide the clients of a financial institution with access to
financial transaction in a public space without the need for the cashier, human clerk or
bank teller. On most modern ATM¶s the costumer is identified by inserting plastic ATM
card with a magnetic stripes or a plastic smart card with a chip, that contain a unique card
number and some security information such as an expiration date or card verification
value code or card security code. Authentication is provided by the costumer entering a
Personal Identification Number(PIN).

ATM¶s are known by various other names including Automated Transaction

Machine, Automated Banking Machine, Cash Point, Money Machine, Bank Machine,
Cash Machine and Any Time Money.

ATM are placed not only near or inside the premises of bank but also in locations
such as shopping center/malls, airports, petrol/gas stations, restaurant or any place large
number of people may gather. Over 1.5 millions number of ATM¶s in global level.

ATM IS TYPICALLY MADE UP OF FOLLOWING DEVICE

˜ CPU ( to control the interface and transaction devices)

˜ MAGNETIC or CHIP CARD READER ( to identify the customer)
˜ PIN PAD ( similar in layout to a touch tone or calculator keypad)
˜ SECURE CRYTO PROCESSOR ( act as the keys tone of a security sub-
system eliminating the need to protect the rest of the sub-system with physical
security measure)
˜ FUNCTION KEY or TOUCH SCREEN ( select the various aspects of the
transaction)
˜ RECORD PRINTER ( provide the customer with a record of their transaction)
˜ VAULT ( place where money are stored and customer to make deposits)

Software used in ATM are mostly Microsoft OS.

 Below details are received from Assistant Manager. M/s. Kokila of Lakshmi
Vilas Bank.

˜ In lakshmi vilas bank ATMs maximum of Rs.25000 can be withdrawn

in a day or we can draw 6 times in a day.
˜ 151 lakshmi vilas bank ATMs are located throughout India.
˜ 25 lakhs can be refilled in ATM.
˜ Customers cannot able to deposits their cheques and cash in LVB¶s
ATM.
˜ We can use other banks ATM for 5 transactions. If it exceeds more
than 5 transactions Rs.22 is charged for each transaction.
˜ If any amount is credited in A/C but not paid for that the customer can
make a claim.
˜ Maximum time for claim clearance is 12 days as per RBI rule. If it
goes more than 12 days, bank has to pay Rs.100 penalty for the
customer everyday.
˜ If the card has lost, they can apply for a duplicate card charges Rs.50.
˜ Expiry date of ATM card is 3 years and the card can be renewed after
the expiry date.
˜ Only 3 times is allowed to enter the wrong pin.
˜ The pin number can be changed in the ATM itself.
˜ Inside the machine there is a printer called µJournal printer¶ it will print
all the details regarding the transaction made.

TYPES OF ATM FRAUD

1. By Lebanese Loop:-

It is a device used to commit fraud. It is becoming one of the

simplest and most widespread form of ATM fraud.In simplest form, lebanese
loop consist of strip of metal or plastic(vedio cassette tape) that is inserted into
the ATM card slot. For Example: When the victim inserts their ATM card,
the loop is sufficiently long enough for the card can be fully drawn into the
machine and read. The victim then enters their pin as normal and requests the
funds. The ATM then tries to eject the card, but a ³lip´ folded at the end of the
loop prevents the card from being ejected. The machine senses that the card
has not been ejected and draws the card back into the machine. The cash
drawer does not open, and the money that has been counted is retained by the
machine.In most cases the victim¶s a/c is not debited. The victim betives the
machine has malfunctioned and they retained their card.

In this case, the criminal will obtain the victim¶s pin either by
watching them entering it. They approach the victim by offering help and
suggesting they to re-enter their pin. Once the victim has left the ATM, the
criminal retrieves the loop and the trapped card and uses it.

2. ATM Skimming:-

It is a method for stealing your identity during an ATM

transaction. This method is utilized a credit card skimmer to collect,
record and store your card number and pin number.

For skimming, there are two device used. A skimmer is

placed over the card slot on the ATM accompanied by what appeared
to a speaker mounted on the ATM above the keypad. When the card is
inserted, a device placed over the slot scanned the magnetic strip and
the a/c information was sent (wireless) to a modified cell phone hidden
behind the fake speaker placed on the ATM above the keypad. A small
camera concealed in the fake speaker would then record the pin
number entered and stored it on a flash memory card. The thief would
then steal a gift card that has not been activated and transfer the a/c
information to the gift card via the magnetic strip thus turning it into
an ATM card.

By doing this stealing excess of $300000 in pennsylvania.

 3. Cash Trapping:-

Similar to lebanese loop where a thin sleeve traps your card,

this time your cash is trapped by a sleeve or device slipped inside
the cash dispenser. Your transaction will operate normally, but you
woun¶t receive the cash you¶ve witndrawn.

If it happens like this eother you will walk or drive away

assuming the machine is out of order or you¶ll go inside the bank
and report the incident. Either way, you have left the machine and
the thieves can come and remove the device and your cash.

SOME TIPS TO PROTECT YOUR SELF FROM ATM THEFT

˜ Get in the habit of using the same ATM machine for your
ransaction. Become familiar with it and be able to
recognize changes to the machine.
˜ Use ATM machine inside banks rather than on the street.
˜ Never rely on the help of strangers.
˜ Never use the ATM when strangers are near you.
˜ Be careful when ever you go to unfamiliar ATM. Examine
it carefully for devices such as cash or card trapping
devices. Look for extra cameras beyond the basic and
generally obvious ATM security cameras.