New ATM Technology Helps Eliminate Waste, Fraud and Theft
Other than a few ascetics, penitents and abstainers, 
almost  everyone likes money. Even better than hard-earned money, is 
free money. To get  free money, you could win the lottery, but the odds 
are against you. Robbing an automated teller  machine (ATM) has recently become another method of choice. Becoming a  bank robber is both risky and illegal. Usually, such actions result in a  prison sentence for anyone so foolish as to try.
Regardless of the consequences involved, my two previous articles about 
ATM  robbery continue to be among the most popular on this blog. As the 
website  administrator, I can see which articles receive the most 
“hits”. Over time, I  have watched as individuals Google “ATM  Robbery” or “Bank ATM  Robbery”.
 The number of such searches is an indicator of trans-personal  economic
 stress. Whenever the world economy wavers, I see more search phrases  
that include "bank  robbery". With my articles, I hope to discourage, rather than to encourage  any plans to rob a bank or ATM.
In
 May 2008, I wrote about after-hours break-ins to bank ATM rooms. Poorly
  armored and alarmed ATM rooms were easy prey for break-in artists. 
After  demolishing a demising wall from an adjoining suite, the robbers 
might utilize a  high-speed plasma torch.
 With such a torch, it is easy to penetrate the  lightly armored back of
 an ATM. With a combination of luck, skill and criminal  intent, robbers
 could make off with more than $100,000. Better yet, the  untraceable 
twenty-dollar bills come neatly concealed in  currency cassettes complete with carrying handles. 
Defeating ATM robbery attempts is relatively easy, but often neglected 
by even  the largest banks. A combination of video surveillance, motion 
alarms and  high-decibel alarm-horns would eliminate most such 
robberies. Still, many  strip-center bank branches have ATM security no 
greater than door locks. Until  the banks wake up to their 
vulnerabilities, I expect a continued increase in ATM  break-in 
robberies.
In December 2011, I wrote about a new, more brazen ATM robbery.  That month, in Laguna Hills, California, a local Chase Bank branch had an  outdoor ATM disappear overnight. Using a  large truck,
 robbers rammed the building, dislocating the ATM from its  moorings. 
Using a truck-mounted winch, the robbers grappled the ATM and hauled  it
 away. In only a few minutes, the thieves absconded with the ATM, 
leaving a  gaping hole in the wall of the building. As of this writing, 
the Chase Bank Laguna Hills robbers remain at large.
There is an easy solution to the ATM-snatch-robbery phenomenon. All outdoor ATMs  should have  concrete filled steel bollards
 installed to prevent ramming by heavy  equipment. A recent visit to 
Kokopelli Federal Credit Union (KFCU)  showed no such barriers 
installed. Beyond exposure to “smash and grab” robbers,  the lack of 
barriers leaves customers exposed to errant drivers. Only when  enough 
banks settle liability lawsuits from injured customers or incur  
sufficient losses from outright ATM theft, will the situation change.
During a recent visit to KFCU, the ancient spirit Kokopelli
 was  correcting their ATM problems. Seemingly everywhere at once, 
Kokopelli oversaw  the installation of both crash barriers and new 
Diebold ATM  security. Although busy removing an old ATM at  the time, Kokopelli stopped to show me the differences between old and new ATM  technology.
An old ATM, Kokopelli indicated, was a glorified envelope-processing 
machine,  with a cash dispenser. Each day, an attendant removed the 
deposit envelopes,  placed them in bags and couriered them to a 
processing facility. There, staff  counted the cash and processed the 
checks through the  Federal Reserve System.
 Upon receipt, a high-definition camera would  photograph the contents 
of each envelope. That way, the bank could reconcile any  discrepancies 
between the recorded amounts and envelope contents.
Careless
 or disreputable customers often deposited empty envelopes. The more  
brazen would later claim that they had enclosed money or checks. 
Although most  ne’er-do-wells quickly admitted their malfeasance, some 
demanded proof that  their envelope was empty. Either way, the process 
took time and money, thus  creating losses for the banks. With fraud and
 abuse becoming rampant, banks need  new ways to stop the  fraudsters at their source.
 
In order to eliminate ATM fraud, Diebold Corporation  
designed KFCU’s new ATM with electronic, photographic and communications
  modules. By combining new hardware and software, KFCU eliminated the 
use of  deposit envelopes and deposit slips altogether. As you feed cash
 deposits into  the new ATM, a photographic reader rejects any defaced 
or counterfeit bills. 
When you deposit a check, the reader sends data to both the Federal Reserve  System and to  independent fraud detection.
 Once the software accepts the account as valid,  the ATM requires the 
customer's approval, as well. Upon agreement, the ATM  provides 
immediate check truncation, thus debiting the check issuer’s account. 
Thereafter, the  scanned image becomes a substitute check, eliminating 
further need for the  original paper check. Thereafter, the paper check 
serves only as backup to the  electronic version. 
After explaining the new technology, Kokopelli exposed the backside of 
the new  ATM. The machine contains a high-speed central processing unit 
(CPU) similar to  a home computer. As the brains of the ATM, the CPU 
connects electronically to  the KFCU processing center. The center 
connects in turn to both the Federal  Reserve and fraud prevention. 
Included in the new machine are check and cash  readers, with storage 
bins for each media type. Finally, there is a device that  every 
customer loves - the Diebold cash dispenser.
With the exception of its fascia, Kokopelli installed the entire ATM 
from inside  the building. With proper structural reinforcement and 
crash guards, thieves can  no longer grapple a KFCU ATM and pull it 
through the wall. If every bank and  credit union were as careful as 
KFCU, the incidence of ATM theft and robbery  could decline. Thank you, 
plush Kokopelli and KFCU for continuing to cover our ancient assets.
By James McGillis at 02:13 PM | Technology | Comments (0) | Link










