The ins and outs of data management

In the 40 years since their inception, ATMs have become an integral part of the banking landscape. Many of us rarely visit our bank branch these days, preferring a trip to the ATM as our primary point of contact with the bank. Of course, with so much cash distributed remotely physical security is a key factor for banks. Tom Hartmann, of Sargent and Greenleaf, and Nick Aveyard of Spinnaker International, two experts in ATM physical security got together to discuss how to ensure that ATMs remain safe.

Today, what are some of the main challenges that the financial services sector faces when it comes to ATM security?
NA. The need to capture higher footfall at the ATM will drive the ATM into more accessible settings with ever more portable structures. This freestanding model typically deployed in retail/convenience stores means the ATM is more exposed leading to a greater accessibility for criminal attack. This will inevitably increase the complexity and risk to the ATM cash replenishment service. So the challenge will be to create protection systems that provide a consistent level of protection through out the replenishment process.

These settings will also mean that the replenishment service passes through crowded public arena’s where there is the potential for large numbers of the public to be caught up in an ‘across the pavement’ attack. The challenge here will be to develop protection solutions that allow a passive surrender of the cash, within its protective case, minimising the potential for on the spot violence, allowing the protection technology to look after the cash.

TH. The trend towards outsourcing ‘bundled’ ATM services (cash management, maintenance), has created new security challenges in the areas of shared access and shared liability. In addition to or perhaps instead of the ATM owner, two or more service organisations often share access to the ATM cash vault, creating the need for greater accountability while ensuring operational efficiencies. With the highly competitive nature of ATM service offerings, owners may desire the ability to move portfolios from one service organisation to another, creating additional operational and security challenges as competing service firms are often compelled to co-operate in the transfer of access authority. Industry consolidation has also led to the convergence and frequent movement of ATMs, creating opportunities to lose control of access authorization. Increasing competitive pressures on service organisations to reduce costs have strained their ability to maintain security processes due to employee turnover and ever-increasing demands on the field workforce.

ATMs are often seen as a potential weak link in the chain and a target for thieves. How has ATM security advanced in recent years to cope with the threats?
TH. Security threats to ATMs come from both internal and external sources. A more technically sophisticated and organised criminal element has led to a proliferation of criminal activity ranging from card phishing and identity theft to ram-raids and increasingly aggressive attacks on cash service organizations. ATMs have become the cash-rich target of choice for opportunistic criminals in large part due to the benign nature of the risk associated with attacking technology compared to face-to-face confrontations associated with armed robberies and burglaries. Internal theft has increased as the result of the constant exposure of high volumes of cash in the processing, transport and service activities in support of ATM management. Significant employee mobility and the demand to fill service positions has opened the door for criminal activity to infiltrate the service sector. Greater visibility and access to large volumes of cash can also be tempting to medium to low wage employees with access.

NA. One of the weak links in the ATM service operation is when the safe door is open exposing the cash cassettes. As the ATM itself and the replenishment service are liabilities of separate parties historically they looked to their own independent security solutions bound by their liability within the cash replenishment process. There is a greater acceptance now that security must be seamless between the two points of ownership, this has led to the development of security techniques that live in and travel with the cash cassette across the process and across traditional points of liability and ownership, reducing the window of opportunity for the criminal.

With crooks becoming ever more cunning and determined in their efforts, how do you help your customers stay one step ahead of the bad guys?
NA. This is done at many levels. First, by continuously building on our 25 years experience as the leading provider of cash protection solutions and broad market relationships across 42 countries, we can see the shifting trends in criminal attacks and the latest modus operandi. This is mapped into detailed consultative workshops that drive continuous risk assessments with our customers supported by specialist advisory bodies such as Banknote Watch.

Second, by continuous research into new technologies and applying these into innovative versatile security features, with a penchant for software structure that allows rapid upgrade to systems in the field. Third, by providing solutions that protect the end-to-end process of ATM cash services rather than point solutions, driving the criminal interest away from the entire service to softer targets.

TH. Recent advances in ATM cash vault access control have led to more sophisticated and flexible solutions for service organizations and their customers. Greater control, visibility and accountability are achieved through centrally controlled, shared access security solutions that allow multiple organizations controlled, shared access to ATMs. Our A SERIES ATM access management system utilises a sophisticated data encryption technology that enables independent access control by an unlimited number of shared access partners. One-time-use combinations are generated for an individual, a time, place and purpose as designated by the service dispatcher. All access activity is captured at the ATM, at the dispatch centre and with the individual to ensure complete and accurate accountability. The encrypted data can be transferred electronically to enable new service organizations immediate access as service agreements transfer from company to company, providing improved operational efficiencies and greater flexibility for ATM owners.

While technological advances have improved ATM security, operational procedures, improved training and greater cooperation with local law enforcement have also enabled financial institutions and their service partners to combat increased criminal activity. Financial institutions are educating their customers as to safe and secure ATM usage practices. Increased monitoring technology at ATM sites, better lighting, video surveillance and duress alarms have all contributed to creating a safer, more secure ATM environment.

When providing your ATM solutions to a customer is it a case that ‘one size fits all’ or do you offer bespoke products? Could you tell me a bit more about these?
TH. From the perspective of the service organization or the individual in the field, the technology we deliver is uniform in how it functions. There are some product variations depending on the model of ATM, which are issues that are capably managed by the ATM manufacturer or service organization, where field retrofits apply. A SERIES can either be factory installed or field retrofitted on all ATM models. Our locks meet and exceed global and national standards for ATM vaults;. such as CEN, CE, UL, VdS, CNPP and SIS.

NA. Security solutions need to reinforce the vagaries of a diverse set of customers, covering a dynamic range of security features, demanding customisation of flexible features achieving integration into the customer’s operational infrastructure, but married to creating the right cost structure with repeatability, reliability and robustness from reuse of tried tested and proven building blocks.

Spinnaker International, market leader in the storage and transportation of cash and ATM cassette protection solutions, provides this through a diverse range of products that have highly configurable security and operational features.

Utilising the latest innovative techniques in ink degradation, the ‘iBox’ can be customised to support a diverse range of cash security services from across the pavement transport of bagged cash, retail drop safe for multiple collections to transporting ATM cassettes. The ‘a2m’ multi vendor intelligent ATM cassette protection system provides full protection within the ATM, or combined with the ‘iBox’ creates E2E protection.

Are there any solutions/products that are in development that you are excited about?
NA. It would be easy to sweep down the road of ‘iBox’ and ‘a2m’, and the exciting new features that are extending our products value and capability, but the most exciting change is the partnerships and the collective approaches that are now emerging to challenge the resolution of ATM crime. Driven by growing government regulation key players from across the partnership spectrum are being brought together to look at whole markets and consider the cash life cycle from end to end. It is these forums that will encourage inter-working not only vertically through the traditional partnership service chain of ATM manufacturer, ATM deployer, CIT and security solutions provider, but also horizontally across competitive groups, providing the opportunity to raise the level of protection across the market in fast concise waves. Presenting a uniform message of seamless security through out the ATM cash flow process to our common foe.

TH. As the global leader for high security safe and vault access solutions, Stanley-Sargent and Greenleaf is continuously exploring, developing and integrating new technologies. In the area of ATM access control, due to a very high level of international demand, we are introducing multilingual options for our ATM access management system software, to include English, German, French, Spanish, Italian and other languages as required. We have also upgraded our software and database formats to be Microsoft Vista compatible.

We continue to offer integration support of our software into customer-specific, front-end dispatch systems and IVR portability solutions that deliver our one-time-combinations to the field thru automated processes. In other product offerings, we have also introduced biometric identification technology, IP integration for centralised control and exception reporting, and asset tracking technology. These technologies have tremendous potential in ATM vault access and cash handling management and we anticipate introducing even more advances in these areas in 2008 and beyond.

Nick Aveyard leads Business Development for E2E solutions for Spinnaker International, with 25 years experience in technology markets covering Automotive Telecomm and Cash Security, holding senior management positions in Business Development, Strategic Marketing and Product Management.

Tom Hartmann is Vice President of the financial division of Sargent and Greenleaf, a Stanley Security Solutions company. A twenty-two year veteran of the security and ATM industries, including four years as managing director of S&G’s European operations in Lausanne, Switzerland, Hartmann works with financial institutions and service providers worldwide to solve complex security and operational challenges.