Article

ATM security: the digital difference

When it comes to security, a growing number of financial institutions are going digital. They share some of the same motivations as consumers who are trading in VCRs for DVD players: speed, convenience, ease of use, and more flexibility in an increasingly networked world.

June 11, 2004

When it comes to security, a growing number of financial institutions are going digital.

They share many of the same motivations as consumers who are trading in their VCRs for DVD players: speed, convenience and ease of use, in addition to more flexibility in an increasingly networked world.

"The speed is just incredible," said Roy Wilson, vice president of corporate security for AmSouth Bank, which has installed nearly 500 digital video recorders or DVRs since it began switching from VCRs in 1999. AmSouth uses Diebold's AccuTrack security system.

What's Important An increasing number of financial institutions are switching from VCRs to digital video recorders at ATMs and branches. Digital systems offer more speed, storage space and flexibility than tape-based systems. Because of the cost of upgrading analog infrastructures to digital, most FIs are doing so gradually.

"If a teller activates an alarm, we can download the images here at the corporate office and tell the authorities what the getaway car looks like before they even get there," Wilson said.

A Southern California credit union replaced its tape-based system with Advanced Security Link's digital Xperience system in November of 2003 when it saw how much quicker incidents could be researched using a DVR rather than a VCR.

"With our old system, it took so much time to find what we were looking for on the tape that we tended to let things go that should have been looked into sooner, such as someone casing the office," according to a testimonial provided by the credit union, which did not want its name to be published. "Additionally, if we had needed the picture printed, we had no way of printing it on site. The cost for off-site printing was prohibitive, and, for anything other than a robbery situation, hard to justify."

On the record

Just one day after the system was installed, a man attempted to cash a stolen check at a branch. "Within minutes we had images of the man from a number of camera angles, which we loaded onto a CD for the police," according to the testimonial.

AmSouth has had similar experiences with AccuTrack, which it uses at all of its 667 branches and at about 15 off-site ATMs, Wilson said.

When a person came in and tried to cash a check after an AmSouth customer reported that his checkbook had been stolen, the teller activated a camera which sent images to a DVR. AmSouth e-mailed the images to the authorities, Wilson said, and when the customer saw who had tried to cash the check, he opted to drop the case.

In addition to upgrading from VCRs to DVRs, AmSouth invested in larger lenses and other improvements for its cameras and began using color rather than black-and-white film, Wilson said. "It all helps us get a better look at what's going on."

Gradual switch

Mike DeWalt, a product manager for Diebold's Electronic Security and Currency Systems Group, estimates that about 40 percent of financial institutions have traded in their VCRs for DVRs. John Young, vice president of sales and marketing for Advanced Security Link, believes the number is only about 20 percent.

This story and all the great free content on ATM Marketplace is supported by: E*TRADE Financial E*TRADE Access, Inc., offers the best in reliable ATM equipment, courteous customer service, and revenue-generating programs so owning an ATM is easy and profitable. ----------------------------- Advertise on ATM Marketplace.  Click here for details.

However, both men agree the number is growing. Diebold's recent security sales show a 60/40 split in favor of digital, DeWalt said.

"As they've started looking at security, most financial institutions realize that an old-fashioned VCR simply can't do what a DVR can do," Young said.

For ATMs, one of the biggest reasons to switch to digital recording is the ability to link transaction data found on the receipt with images, said DeWalt and Young.

Because of the expense of upgrading from an analog to a digital system, most FIs are doing so gradually, DeWalt said. Typically, cameras will continue to transmit video to a DVR via an existing analog infrastructure. The DVR can then be accessed remotely via LAN and/or modem communication.

Upgrades allow DVRs to be accessed more easily from the LAN and offer more options for data transmission, DeWalt said. For instance, FIs could more easily transmit image data to a central location from multiple sites. Upgrades also make it easier to integrate alarms and cameras at remote locations like ATMs.

A digital infrastructure is "more expensive, but not drastically so" than an analog system, DeWalt said. "The delta is lowering all the time."

Convinced that demand will grow, Diebold in late 2003 launched its AccuTrack Elite 3200 which adds more processing power and data storage. This makes it possible to support more cameras, capture more frames per second and other improvements, DeWalt said.

Cost crunching

Young said that a typical DVR costs $3,000 or more. "But all it takes is one incident where a bank can quickly provide legible proof of an event for ROI to be realized," he said.

A digital system also removes the possibility of missing or damaged tapes or ones recorded over in error. "IT departments really like digital systems because they appreciate having formal processes for log-ins, back-ups and other procedures," Young said.

AmSouth found that the difference in price between DVRs and VCRs was not as significant as initially expected, Wilson said.

"Sure, you can get a VCR for $49 at Sam's Club, but that's not the kind of VCR you're going to be using in a security environment," he said. "The price differential was not that great when we looked at it."

DVRs can incorporate multiple features in a single device -- including motion detection, remote search of ATM transactions, built in switching or multiplexers -- that would require the addition of multiple devices with typical analog recorders, DeWalt said.

Smile! The digital security camera on this NexTran ATM is concealed behind the dark oval at the top of the machine.

A digital system can store "an enormous amount" of data, roughly one terabyte (or 1 trillion bytes), Young said. Because of this, he said, the task of changing and archiving tapes is removed from branch personnel. A terabyte should provide ample storage for at least a year's worth of normal branch activity - with most branches using nine to 16 cameras to cover entry/exit points, ATMs, teller stations, vaults and other areas.

Increased storage was one of the major reasons that AmSouth switched to digital for some of its off-site ATMs, Wilson said. "Our service company was supposed to change the tapes; I say 'supposed to' because it didn't always happen."

Some large retailers with Advanced Security Link's Xtreme system use it for functions like monitoring employee time and attendance in addition to store surveillance.Young said FIs could use it for employee training and other purposes.

Another twist

Another twist on digital security is the integration of digital cameras into ATMs, an option offered by NexTranas an option on all of its models. Eric Park, the company's chief operating officer, said the cost ranges from $300 to $500, depending on the ATM model.

Park said the small camera is concealed behind the ATM fascia. It takes a 240-by-200 pixel image when the ATM user enters a PIN; the image file is then attached to the electronic journal record of the transaction.

The feature should make it easier to settle any customer disputes, Park said. "With an image of the person who performed the disputed transaction linked to the transaction record, it's going to be a lot easier to investigate chargebacks.  If it wasn't the customer who used the card, we're going to have a picture of whoever did."

It may also help pinpoint problems with shoulder surfing and other fraud, Park said. "The camera is going to show whether there was anyone next to or behind the customer."

While it is not yet possible to access the digital images remotely, Park said NexTran is investigating the possibility of offering this option. A large number of images can be stored at ATMs, he said. "Images are only about 20 kilobytes, and the minimum hard drive space available on our machines is 30 gigabytes."

He believes interest in integrated digital cameras will grow as some states look at toughening security standards for ATMs. Last September, New York Gov. George Pataki approved a new law that requires FIs to install security cameras at ATMs and record everybody who enters an enclosed facility or all activity that takes place within a certain distance of an exterior ATM location. The law also requires FIs to keep security tapes from all ATM locations for at least 45 days.

"This common-sense amendment will help law enforcement authorities and banks fight identity theft and fraud at ATMs throughout New York State," Pataki said in a written statement when he signed the legislation.

Included In This Story

---