ATM

1. **Describe the term**

ATM (Automatic teller machines)- is a computerized system that is use to deposit, withdraw money from their banking accounts, check balances and transfer money from one account to another.



The ATM is made up of much more than a computer, however. In order to perform all of its functions, the ATM has many different parts. These include the computer, which includes the interface and the keypad for the customer to use, and a magnetic card reader. The latter allows the machine to read the magnetic strip on the back of a customer's debit or ATM card. The machine will also include a display screen, function buttons (usually placed near the screen and covering the functions of saying "yes," "no," and "cancel"), a printer and a cash drawer. Depending on the ATM, it may also provide envelopes for deposits and security cameras.

Read more: [|How Does an ATM Machine Work? | eHow.com] [|http://www.ehow.com/how-does_4673254_atm-machine-work.html#ixzz1WO4TjlQt]

How it works ex: Internet, Security, VPN, database An ATM is a data terminal with two input and output devices. It has to connect and communicate through a host processor, which is similar to an ISP, in that it is the gateway through which all the various ATM networks becomes available to the cardholder. Most host processors can support leased-line or dial-up machines. L eased-line machines connect directly to the host processor through a four-wire, point-to-point, dedicated [|telephone] line. Dial-up ATMs connect to the host processor through a normal phone line using a [|modem] and a toll-free number, or through an Internet service provider using a local access number dialed by modem. Leased-line ATMs are preferred for very high-volume locations because of their **thru-put** capability, and dial-up ATMs are preferred for retail merchant locations where cost is a greater factor than thru-put. The host processor may be owned by a bank or financial institution, or it may be owned by an independent service provider. Bank-owned processors normally support only bank-owned machines, whereas the independent processors support merchant-owned machines.
 * 2.** **Describe the use of IT in each area, (internet, database, etc)**

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3. **Explain how IT helps with each area** Advantages: Paperless, Convenient

The ATM is convenient because they can be found anywhere such as in stand-alone booths or on the outsides of a bank, grocery stores and malls. People don’t need to go all the way to the bank just to withdraw cash; they can just go to the ATM. Living without an ATM can be really tough especially now. Back then when the banks are closed, you are out of luck until it opens unless the place that you shopped takes checks. Having an ATM will also save trees. It will reduce the amount of paperwork needed to be done for withdrawing money. The only paper that ATMs use will of course, the money and maybe the receipt (if the customer chose to print them that is).

Read more: [|How Does an ATM Machine Work? | eHow.com] [|http://www.ehow.com/how-does_4673254_atm-machine-work.html#ixzz1Waqgxl2s]

Problems Ex: Wiretap, hack
 * 4.** **Describe any problems with IT in each area.**

ATM skimming is one of the issues with using an ATM especially in an open place. The thieves’ uses counterfeit card readers in order to access your card information and hidden cameras to obtain your PIN number. These hidden cameras are usually well hidden and easy to overlook. Some thieves employ fake keypads instead of cameras in order to capture PIN numbers.

Another problem is that anyone can purchase an ATM machine online; they don’t need any credentials to purchase one. Therefore, hackers could buy the ATM and place it anywhere and they would have access to a list of users with their personal data that the ATM retained.

Further, the connection between the ATM and the host server could be hacked if it is not well protected. And if the hacker successfully hack the connection, they could possibly gain lots of credit card information.


 * 5.** **Identify and explain possible issues with each area.**

Strand 1:
 * Security**- ATM fraud issue is an ATM card theft which includes credit card trapping and debit card trapping at ATMs. Most bank ATM security issues and ATM fraud issues involving ATM skimming are the result of criminals attaching an ATM skimmer to the ATM card reader slot.