1.

INTRODUCTION
An ATM is an electronic device which allows a banks customer to make cash withdrawals and check their account balance at any time without the need for a human teller. Many ATMs also allow depositing cash or cheques, transfer money between their banks. The Worlds first ATM was installed in ENFIELD town in the London on June 27, 1967 by Barclays bank. ATMs are known by various other names including Automated Transaction Machine, automated banking machine, cash point (in Britain),money machine, bank machine, cash machine, hole-in-the-wall, Bancomat (in various countries in Europe and Russia), Multibanco (after a registered trade mark, in Portugal), and Any Time Money (in India). An automated teller machine or automatic teller machine (ATM), also known as an automated banking machine (ABM) in Canada, and a Cash point (which is a trademark of Lloyds TSB), cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller. ATMs are known by various other names including ATM machine, automated banking machine, and various regional variants derived from trademarks on ATM systems held by particular banks.

2. HISTORY
The idea of self-service in retail banking developed through independent and simultaneous efforts in Japan, Sweden, the United Kingdom and the United States. In the USA, Luther George Simjian has been credited with developing and building the first cash dispenser machine. There is strong evidence to suggest that Simjian worked on this device before 1959 while his 132nd patent (US3079603) was first filed on 30 June 1960 (and granted 26 February 1963). The rollout of this machine, called Banko graph, was delayed a couple of years. This was due in part to Simjian's Reflectone Electronics Inc. being acquired by Universal Match Corporation. An experimental Bank graph was installed in New York City in 1961 by the City Bank of New York, but removed after 6 months due to the lack of customer acceptance. The Bankograph was an automated envelope deposit machine (accepting coins, cash and cheques) and it did not have cash dispensing features. A first cash dispensing device was used in Tokyo in 1966. Although little is known of this first device, it seems to have been activated with a credit card rather than accessing current account balances. It was followed in 1967 by a machine in Uppsala. Plaque commemorating installation of world's first bank cash machine. In simultaneous and independent efforts, engineers in Sweden and Britain developed their own cash machines during the early 1960s. The first of these that was put into use was by Barclays Bank in Enfield Town in North London, United Kingdom, on 27 June 1967. This machine was the first in the UK and was used by English comedy actor Reg Varney, at the time so as to ensure maximum publicity for the machines that were to become main stream in the UK. This instance of the invention has been credited to John Shepherd-Barron of printing firm De La Rue, who was awarded an OBE in the 2005 New Year Honours. His design used special cheques that were matched with a personal identification number, as plastic bank cards had not yet been invented. The Barclays-De La Rue machine (called De La Rue Automatic Cash System or DACS) beat the Swedish saving banks' and a company called Metior's machine (a device called Bankomat) by nine days and Westminster Banks-Smith Industries-Chubb system (called Chubb MD2) by a month. The collaboration of a small start-up called Speytec and Midland Bank developed a third machine which was marketed after 1969 in Europe and the USA by the Burroughs Corporation. The patent for this device (GB1329964) was filed on September 1969 (and granted in 1973) by John David Edwards, Leonard Perkins, John Henry Donald, Peter Lee Chappell, Sean Benjamin Newcombe&Malcom David Roe.

3. WHAT IS AN ATM?
You are short on cash, so you walk over to the ATM. All you have to do is insert your ATM card into the card reader, input the required information & within a minute you walk away with your money & a receipt. These machines can now be found at most supermarkets, convenience stores & travel centers all over the country. These machines are extremely easy to use & hence are widely used.

3.1 Parts of ATM:

1. Card reader 2. keypad 3. Speaker 4. Display screen 5. Receipt printer 6. Cash dispenser 7. Screen buttons 8. Web cam

3.2 Input devices:

An ATM has two input devices: 1. Card reader - The card reader captures the account information stored on the magnetic stripe on the back of an ATM card. The host processor uses this information to route the transaction to the cardholder's bank.

Fig 3.2.1: Card Reader 2. Keypad - The keypad lets the cardholder tell the bank what kind of transaction is required (cash withdrawal, balance inquiry, etc.) and for what amount. -Also, the bank requires the cardholder's personal identification number (PIN) for verification. -The PIN block is sent to the host processor in encrypted form.

Fig 3.2.2: Keypad

3.3 Output devices:

An ATM has four output devices. 3. Speaker - The speaker provides the cardholder with auditory feedback when a key is pressed. 4. Display screen - The display screen prompts the cardholder through each step of the transaction process.

Fig 3.3.1: Display Screen 5. Receipt printer - The receipt printer provides the cardholder with a paper receipt of the transaction.

Fig 3.3.2: Receipt Printer 6. Cash dispenser - The heart of an ATM is the safe and cash-dispensing mechanism. The entire bottom portion of most small ATMs is a safe that contains the cash.

Fig 3.3.3: Cash Dispenser

3.4 Bill records:

The cash-dispensing mechanism has an electric eye that counts each bill as it exits the dispenser. The bill count and all of the information pertaining to a particular transaction is recorded in a journal. The journal information is printed out periodically and a hard copy is maintained by the machine owner for two years. Whenever a cardholder has a dispute about a transaction, he or she can ask for a journal printout showing the transaction, and then contact the host processor. It is the host processor's responsibility to resolve the dispute.

3.5 Reject bills:

Besides the electric eye that counts each bill, the cash-dispensing mechanism also has a sensor that evaluates the thickness of each bill. If two bills are stuck together, then instead of being dispensed to the cardholder they are diverted to a reject bin. The same thing happens with a bill that is excessively worn or torn, or is folded. The number of reject bills is also recorded so that the machine owner can be aware of the quality of bills that are being loaded into the machine. A high reject rate would indicate a problem with the bills or with the dispenser mechanism.

3.6 PROTOCOLS USED:

Various protocols are used for transferring information over the network in the ATM. A few of them are explained in brief: 1. TCP (Transmission control protocol): - Connection oriented protocol. - TCP is used to dynamically adapt to properties of the internetwork & to be robust to face any failures. 2. SMTP (Simple Mail Transfer Protocol): - Simple ASCII protocol, Accepts incoming messages & sends them to appropriate locations. 3. X.25: - It is a standard network protocol, Connection oriented. - Provides flow control. 4. SNMP (Simple Network Management Protocol): - Used when information in entered through the keypad.

4. HOW ATM WORKS

1. The ATM is act as a data terminal. ATM has to connect to or communicate through a host computer. 2. The host computer in analogous to an Internet service provider (ISP). 3. The host computer is the gateway through which all the various ATM network becomes available to the user. 4. In ATM system customers authenticate themselves by using a plastic card with a magnetic stripe which is known as ATM CARD. 5. The magnetic stripe encodes the customers account number and a numeric password which is known as PIN (Personal Identification Number). 6. The ATM prompts the user to insert the card. 7. When the card is entered the customer personal identification number (PIN) is requested. 8. The customer inputs his or her PIN. 9. If the card is a valid card which can be processed by the machine then control transfer to next stages and prompts the user to either transfer, deposit or withdrawal of cash. 10. If the number entered incorrectly several times in a row most ATMs will retain the card as a security precaution to prevent an unauthorized users.

5. SECURITY
5.1 Security tips:
Here are some security tips the card owner must follow while using the ATM: Don't write down your PIN. If you must write it down, do not store it in your wallet or purse. Make your PIN a series of letters or numbers that you can easily remember, but that cannot easily be associated with you personally. Avoid using birth dates, initials, house numbers or your phone number. Store your ATM card in your purse or wallet, so that it won't get scratched or bent. After your transaction, take your receipt, card and money away. Count your money properly & check the receipt properly. Notify immediately about stolen or lost card to your financial institution.

5.2 Security of an ATM:

As most of the ATMs are open for 24 hrs & also all of them are not guarded, it is important to provide security to the machine. One of the technologies is explained here. The Electronic Signature Lock (ESL) is a patented technology that can be implemented in hardware, firmware, or software and used to protect digital resources, funds transfer, or physical access. It can identify computer terminal users locally or remotely without having to modify or attach anything to the terminal. It is completely transparent to the users and can be used surreptitiously without their knowledge and still uniquely identify them. The ESL is attached to or integrated into the protected resource, such as a computer or automatic bank teller machine (ATM). It will identify the local or remote terminal users as impostors even if they know all the pass words, accesscodes, and protocols for accessing the protected resources, if they are not who they say they are, just as if their fingerprints had been taken remotely and surreptitiously. Face recognition or finger print recognition are also the techniques used for the security of an ATM. In these techniques the related data is stored in the database.

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5.3 GENERAL SECURITY:

1. Modern ATM physical security concentrate on denying the use of the money inside the machine to a thief or a fraud using some fraud detection techniques. 2. The customer request a withdrawal from the machine which dispenses no money but merely prints a receipt. The customer then takes the receipt to a sales clerk and exchange it for cash. 3. An additional security measure limits the total amount of ATM withdrawal to some particular amount. 4. This aims to reduce the amount of fraud withdrawal. To provide security, ATM system follows three different mechanism. 1. Time out 2. Invalid card 3. Stolen card

1. Time out:
The customer may fail to enter the PIN within the allowed time limit then the card is returned.

2. Invalid card:
The card is not recognized and it is returned.

3. Stolen card:
The card is recognized as a stolen card and is retained by the machine.

5.4 DATABASE SECURITY:

1. The ATM keeps all the information about the user and users account inside the centralized database. Inside the database all the information are stored in the form of tables (objects) which are more secured than the general file systems. 2. The database also provide locking mechanisms to maintain safety and security of data.

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5.5 NETWORK SECURITY:

The ATM network system provides the following features. 1. Authentication: The user is the one it claims to be. 2. Confidentiality: Only authorized users can access the content of the data. 3. Integrity: The data is not be altered by the third party during the transmission.

5.6 Customer identity integrity:

A BTMU ATM with a palm scanner (to the right of the screen). There have also been a number of incidents of fraud by Man-in-the-middle attacks, where criminals have attached fake keypads or card readers to existing machines. These have then been used to record customers' PINs and bank card information in order to gain unauthorized access to their accounts. Various ATM manufacturers have put in place countermeasures to protect the equipment they manufacture from these threats. Alternate methods to verify cardholder identities have been tested and deployed in some countries, such as finger and palm vein patterns, iris, and facial recognition technologies. Cheaper mass produced equipment has been developed and is being installed in machines globally that detect the presence of foreign objects on the front of ATMs, current tests have shown 99% detection success for all types of skimming devices.

5.7 Device operation integrity:

ATMs that are exposed to the outside must be vandal and weather resistant. Openings on the customer-side of ATMs are often covered by mechanical shutters to prevent tampering with the mechanisms when they are not in use. Alarm sensors are placed inside the ATM and in ATM servicing areas to alert their operators when doors have been opened by unauthorized personnel.Rules are usually set by the government or ATM operating body that dictate what happens when integrity systems fail. Depending on the jurisdiction, a bank may or may not be liable when an attempt is made to dispense a customer's money from an ATM and the money either gets outside of the ATM's vault, or was exposed in a non-secure fashion, or they are unable to determine the state of the money after a failed transaction.
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Customers often commented that it is difficult to recover money lost in this way, but this is often complicated by the policies regarding suspicious activities typical of the criminal element.

5.8 Customer security:

Dunbar Armored ATM Techs watching over ATMs that have been installed in a van. In some countries, multiple security cameras and security guards are a common feature. In the United States, The New York State Comptroller's Office has advised the New York State Department of Banking to have a more thoroughly safety inspections of ATMs in high crime areas. Consultants of ATM operators assert that the issue of customer security should have more focus by the banking industry; it has been suggested that efforts are now more concentrated on the preventive measure of deterrent legislation than on the problem of ongoing forced withdrawals. At least as far back as July 30, 1986, consultants of the industry have advised for the adoption of an emergency PIN system for ATMs, where the user is able to send a silent alarm in response to a threat. Legislative efforts to require an emergency PIN system have appeared in Illinois, Kansas and Georgia, but none have succeeded as of yet. In January 2009, Senate Bill 1355 was proposed in the Illinois Senate that revisits the issue of the reverse emergency PIN system. The bill is again supported by the police and denied by the banking lobby.

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6. DIFFERENCE BETWEEN ATM CARD & CHECK CARD

As an alternative to writing checks & using a credit card many companies have started issuing what is called as the check card. The basic difference between a check card &an ATM card is that a ATM card can be used only at a ATM or some stores whereas the check card can be used at any retailer that accepts credit cards like book stores, grocery stores, ticket counters, hotels, etc. Check cards are also known as debit cards because of how they work : instead of getting credit for your purchase and receiving a monthly bill, like you do with a credit card, a check/debit card deducts money from your checking or savings account. It's easy to tell the difference between a plain ATM card and a check card. A check card has your name, "credit" account number, the credit company's logo, the bank's logo and "Check Card" printed across the front of it; an ATM card has only your name, account number and bank's logo on the front of it.

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7. ADVANTAGES & DISADVANTAGES OF AN ATM

7.1 Advantages of an ATM:
1. An automated teller machine increases existing business: The typical ATM customer will spend 20-25% more than a non-ATM customer, according to research conducted by AT&T Global Information Solutions. 2. An automated teller machine generates new business: Customers are more likely to seek out a location with an automated teller machine; in addition to convenience, there are a number of safety benefits associated with an in-store automated teller machine. 3. An automated teller machine provides additional revenue streams: Each an ATM withdrawal transaction generates surcharge income for the owner of the automated teller machine. Additionally, an automated teller machine can provide revenue from on-screen advertising, couponing, and alternative media (e.g., prepaid phonecards, postage stamps) dispensing opportunities. 4. An automated teller machine reduces risk and lowers costs: Having an automated teller machine on the premises can reduce the number of bad checks and cut credit card expenses because customers have the option of withdrawing cash instead. 5. ATM provides 24 hours service: ATMs provide service round the clock. The customer can withdraw cash up to a certain a limit during any time of the day or night. 6. ATM gives convenience to bank's customers: ATMs provide convenience to the customers. Now-a-days, ATMs are located at convenient places, such as at the air ports, railway stations, etc. and not necessarily at the Bank's premises. It is to be noted that ATMs are installed off-site. (away from bank premises) as well as on site (installed within bank's premises). ATMs provide mobility in banking services for withdrawal. 7. ATM reduces the workload of bank's staff: ATMs reduce the work pressure on banks staff and avoid queues in bank premises.

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8. ATM provides service without any error: ATMs provide service without error. The customer can obtain exact amount. There is no human error as far as ATMs are concerned. 9. ATM is very beneficial for travelers: ATMs are of great help to travellers. They need not carry large amount of cash with them. They can withdraw cash from any city or state, across the country and even from outside the country with the help of ATM. 10. ATM may give customers new currency notes: The customer also gets brand new currency notes from ATMs. In other words, customers do not get soiled notes from ATMs. 11. ATM provides privacy in banking transactions. 12. ATM supports voice, video and data allowing multimedia and mixed services over a single network. 13. High evolution potential, works with existing, legacy technologies. 14. Provides the best multiple service support. 15. Supports delay close to that of dedicated services. 16. Supports the broadest range of burstiness, delay tolerance and loss performance through the implementation of multiple QOS classes. 17. Provides the capability to support both connection-oriented and connectionless traffic using AALs. 18. Able to use all common physical transmission paths like SONET. 19. Cable can be twisted-pair, coaxial or fiber-optic. 20. Ability to connect LAN to WAN, Legacy LAN emulation. 21. Efficient bandwidth use by statistical multiplexing, Scalability. 22. Higher aggregate bandwidth. 23. High speed Mbps and possibly Gbps.

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Send Money Online:

With ATMCASH consumers can easily send money online 24 hours a day, 7 days a week and the money can be withdrawn at more than 1.6 million ATMs in over 150 countries and in all 50 United States. ATMCASH enables consumers to send money using a credit card, debit card or bank account. The sender's recipient receives a re-loadable ATMCASH Card which enables both senders and recipients to send and receive money on their own schedules, without having to fill out forms or be restricted to any agents' locations hours. Send Money Online, receive money at the ATM, easy, fast and safe.

Online Money Transfer:

ATMCASH allows users to complete online money transfers 24 hours a day, 7 days a week. ATMCASH enables users to transfer money online with a credit card, debit card, or bank account. The money can be withdrawn at more than 1.6 million ATMs in over 150 countries and all 50 United States. The senders chosen recipient receives a re-loadable ATMCASH Card to withdraw the money at a local ATM. The sender can complete an online money transfer at their convenience, without having to worry about filling out forms or hassle. The recipient can withdraw the money on their schedule without having to deal with agents' locations hours.

7.2 Disadvantages:
Not available in remote places. Cannot avoid illegal use in case of stolen card. -Flexible to efficiencys expense, at present, for any one application it is usually possible to find a more optimized technology. -Cost, although it will decrease with time. -New customer premises hardware and software are required. -Competition from other technologies -100 Mbps FDDI, 100 Mbps Ethernet and fast Ethernet. The wait, with a Advantages are that with ATMs you can withdraw you money anytime, they are located outside the bank hall for with drawers of cash, they listen and follow instructions from the host, these save time and involves less paperwork, they operate 24hours, these use pin for security thus they are safe.

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8. COMPANIES THAT MANUFACTURE ATM

Some companies that manufacture ATMs are MERCHANT BANKARD NETWORK HITACHI AUSTRIAN BANKING AOTOMATION SYSTEM INTEGRATOR.

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9. PRECAUTIONS TO TAKE
1. Treat your ATM card like cash. Always keep your card in a safe place. 2. Keep your secret code as secret. Dont use date of birth, address, phone number as your PIN. 3. Take your receipt on every ATM transaction. Dont leave it at or near the ATM counter. 4. Report a lost or stolen card at once. 5. ATM users should seek out a machine that is located in a well-lighted area.

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10. FUTURE ENHANCEMENTS

ATM system provides the security that if you withdraw certain amount per day or you deposit, a prompt on the screen will ask you to enter your birthday and month to confirm your identity.

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11. CONCLUSION
At the end of this report I conclude with the following points: - With the growing networks ATM might soon be installed at many places. - ATMs for the blind have also been designed & are available in the Chinese market. - ATMs that make available various types of currencies are also available.

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