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With rapidly changing regulatory and technical environments, many financial institutions are emulating the Boy Scouts. They want to �be prepared� with ATM strategies that include known factors like Triple DES ? and position them to address possible new challenges.

For many FIs, that means a technology refresh that includes moving ATMs to a Microsoft Windows-based platform, as well as increasing memory and adding more powerful processors. Some are also investing in IP communications and making other infrastructure improvements. While these kinds of upgrades are not inexpensive, FIs believe they will save a significant amount of money over the long term.

California Windows

California�s San Diego County Credit Union is migrating 107 ATMs to a Windows 2000 platform, and upgrading its switch to Mosaic Software�s Postilion system.

Eric Stone, SDCCU�s ATM network manager, said the moves are part of a Triple DES conversion. But they will also make it easier and cheaper to add audio capabilities to ATMs when the Department of Justice signs off on revisions to the Americans with Disabilities Act, and to introduce other new functionalities.

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SDCCU also is installing A98, an initial key establishment software from Trusted Security Solutions, a security solutions provider for the transaction processing industry. Stone said SDCCU is having technicians load initial Triple DES keys in ATMs using the A98 system. The system simplifies key management for ATM owners by assuming the responsibility for generating keys and maintaining audit logs.

Eventually, Stone said, SDCCU intends to load and manage its ATM keys remotely. Trusted Security�s latest release supports remote key loading using either Diebold�s certificate-based protocol or NCR�s signature-based protocol.

�We want to position ourselves to be as efficient as we can in adding new features to our ATMs, whether it�s to fulfill regulatory requirements or to improve customer service,� he said.

David Pharr, Trusted Security�s director of business development, said most of his company�s clients are adopting similar strategies, with many of them using Triple DES as an impetus to better position themselves for remote key management.

�We can help them reduce their risk by getting Triple DES keys in there today, and they can easily move to remote key when they�re ready,� he said. �With A98, it�s not going to be a big switch. They don�t want to have to go to the ATM any more than they have to.�

Because A98 is vendor-neutral, the system works even if an ATM owner opts to change his application software.

With A98, a new key request can come from the ATM, be initiated at the host or from the A98 system itself.

Trusted Security has created A98 interfaces for several major transaction processors and for several processing platforms, including ACI's Base24, Mosaic Software�s Postilion, S2 Systems� OpenN/2 and SDM International�s OCM24. No ATM changes or host application software changes are needed to use A98.

"We've come a long way when you think that the only option you had in the past to rekey an ATM was to send two technicians on site," Abraham said.