ATM Banking Technology

ATM Banking Technology

Rapid development of banking technology has changed the way banking activities are dealt with. One banking technology that has impacted positively and negatively to banking activities and transactions is the advent of automated teller machine (ATM).

With an ATM, a customer is able to conduct several banking activities such as cash withdrawal, money transfer, paying phone and electricity bills beyond official hours and physical interaction with bank staff.

In a nutshell, ATM provides customers a quick and convenient way to access their bank accounts and to conduct financial transactions. Personal identification number (PIN) or password is one important aspect in ATM security system which blind people may likely relate with people because they may find it difficult to use the traditional ATM machines used by normal people, due to their deformity they have to option than to disclose their pin to their fellow user who do not have any deformity, this brought up the study of developing a simulated sound enabled ATM for the blind which they can use to do ATM transactions themselves with the aid of a head jack in front of the ATM machine. PIN or password is commonly used to secure and protect financial information of customers from unauthorized access. An ATM (known by other names such as automated banking machine, cashpoint, cash machine or a hole in the wall) is a mechanical system that has its roots embedded in the accounts and records of a banking institution. It is a computerized machine designed to dispense cash to bank customers without need of human interaction; it can transfer money between bank accounts and provide other basic financial services such as balance enquiries, mini statement, withdrawal and fast cash among others.

As the Automated Teller Machines (ATM) technology is advancing, fraudsters are devising different skills to beat the security of ATM operations. Various forms of fraud are perpetuated, ranging from: ATM card theft, skimming, pin theft, card reader techniques, pin pad techniques, force withdrawals and lot more. Managing the risk associated with ATM fraud as well as diminishing its impact is an important issue that faces financial institutions as fraud techniques have become more advanced with increased occurrences. Considering the numerous security challenges encountered by Automated Teller Machines (ATM) and users and given that the existing security in the ATM system has not been able to address these challenges, there is the need to enhance the ATM security system to overcome these challenges mostly among blind people. This study focuses on how to enhance security of transactions in ATM system by blind people using the method of simulating sound in the ATM machines for blind people which allow them to withdrawal money or do any ATM transactions on their own without any help from a third party.

The aim of this study therefore is to develop ATM simulator based sound enabled operations in order to reduce frauds associated with the use of ATM for blind people. In today’s technically advanced world, autonomous systems are gained rapid popularity. As the social computerization and automation has been increased and the ATM and credit card has been installed and spread out to simplify the activity for financial activity, the banking activity has been simplified. However the crime related with financial organization has been increased in proportion to the ratio of spread out of automation and devices. Those crimes for the financial organization have been increased gradually from year 1999 to 2003, little bit decreased in 2004 and then increased again from the year 2005.

Among the crime for financial organization, the cases of theft and robber have very high proportion of over 90% and the crime for the ATM has been increased because the external ATM has been increased and it is always exposed to the crime.

People have several reasons for committing ATM fraud, some people get involved in fraud because they have financial problem, and think that it is the only way out. In some cases, they think they can do it and get away with it. When they see an opportunity like a design flaw, they would rather take advantage instead of reporting it (Lynch, 2010).

The underlying factor in every occurrence of fraud is good, and the see mingly relatively ease of making money. All in all, the aim of fraud is to gain undue advantage over others.
The security/policy information network (SPIN) defines ATM fraud as “the theft of telecommunication service (telephone, cell phones, computers etc.) or the telecommunication service to commit other forms of fraud.

There are various examples of banking sector fraud which include;

1. Intrasion fraud: This occurs when an existing legitimate account, typically a business, is compromised in some way by an intruder, who subsequently makes or sells calls on this account.

2. Intrusion Fraud: this occurs when an existing, legitimate account, typically a business, is compromised in some way by an intruder, who subsequently makes or sells.

3. Fraud based on loopholes in technology: This occurs when fraudsters locate a loophole in system e.g. unprotected password, and use it to carry out acts that would cause disasters to others.

4. Social Engineering: Instead of exploiting technological loopholes, social engineering exploits human interaction with the system. In this case, the fraudster pretends to be someone they are not, such as a legitimate account holder or a staff of the phone company, or as to gain access to information they can use for fraud.

5. ATM Fraud: Perpetrators of this kind of fraud use special information storage devices to secretly copy the magnetic strip on the back of credit and debit cards during normal transaction e.g. ATM withdrawal. They then upload this information to another card and us this for fraudulent activities (Becker, Volinsky, Wilks, 2010).
The effects of banking sector fraud most especially in ATM system and fraud in general, is far reaching. It affects both individuals and companies. Fraud can lead to increased cost as they may have to spend more money than they thought to repair any damage that the occurrence of fraud might bring – cause the company. It also leads to customer dissatisfaction, as they lose their confidence in the banking sector or the company offering the ATM system.


Crime at ATMs has become a nationwide issue that faces not only customers, but also bank operators most especially blind customers that uses ATM that discloses their ATM PIN to unknown people and this financial crime case rises repeatedly in recent years. A lot of criminals tamper with the ATM terminal and steal customers’ card details by illegal means. Once users’ bank card is lost and the password is stolen, the users’ account is vulnerable to attack. Traditional ATM systems authenticate generally by using a card (credit, debit, or smart) and a password or PIN which no doubt has some defects on blind customers. The prevailing techniques of building a separate ATM machine system will be a good edge towards eliminating the ATM fraudsters of blind people. Passwords and PINs can be illicitly acquired by direct covert observation. When credit and ATM cards are lost or stolen, an unauthorized user can often come up with the correct personal codes

The major objectives that will be covered in this study are the following;

Develop a system that should be able to study scope of traditional ATM for normal bank customers

Develop a system that should be able to generate module which helps in simulating sound in the Automated Teller Machine (ATM) system?

Develop a system that should be able to providing suggestions with advantages and limitations of proposed Sound enabled Automated Teller Machine (ATM) system.



With a great increase in ATM fraud when a bank user lost his or her ATM card and PIN or disclose the PIN to a third party, the fraudsters will withdraw everything in his/her account, it happens to be a major problem among bank users. The most important part of this research project is to be able to inculcate the security measure in the ATM system for the blind by enabling sound to make the use of the ATM easy by the blind bank customer using the head phone jack in front of the proposed sound enabled ATM machine.



This system would be implemented using the and MySQL database and also all necessary method of data collection within my reach to ensure the system meet up to acceptable standard has been put into consideration. Also tables, graphs/figures for easily analysis and demonstration of development trend of achievement would also be shown. Also this work would be carried out under close supervision for adequate guidance and interpretation of the work as it unfolds.

The software is limited to the use of developed keypad for keying in data into the simulated ATM because the cost of procuring Braille for the course of this study is much and it cannot be interfaced without the physical ATM

Due to the high cost of developing an ATM system, software that will be running on the computer system that does all the major operations of the ATM system using the VB.NET programming language and a MySQL database system with a head phone will be used to develop the sound enabled ATM machine for the blind.


BANK – A financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets.
ATM (Automated Teller Machine) – an electronic telecommunications device that enables the clients of a financial institution to perform financial transactions without the need for a cashier, human clerk or bank teller.

SECURITY – The degree of resistance to, or protection from harm.

AUTHENTICATION – The process of identifying someone base on users name or password in security system.

AUTHORIZATION – Act of granting someone the permission to do or take something.

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