Article

GPS promise yet to be realized at the ATM

The industry has been buzzing about global-positioning systems that would help deployers track down stolen ATMs. But the technology's expense and shortcomings may make it less than practical for ATMs, experts say.

July 31, 2005

The natural reaction of an ATM deployer who learns that his or her machine has been stolen is to find a way to quickly track down the thieves and recover the machine.

In recent years the industry has been buzzing about the use of global-positioning systems that would do just that.

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Barry Schreiber, a criminal justice professor at St. Cloud State University in Minnesota, has studied ATM crime for more than 20 years and said, based on his research, he would estimate that as many as 200 ATMs are stolen annually in the United States.

However, some industry experts say the potential for GPS technology to address those crimes has yet to be realized.

One company developing a GPS device for the ATM is Irvine, Calif.-based security firm Global Investigative Group Inc. President and chief executive Mark Nickelson said he expects his company's GPS product to be released later this year.

"Everyone is talking about GPS," Nickelson said. "Right now, we are just trying to iron out some of the kinks in our system."

Rob Evans, the director of industry marketing for Dayton, Ohio-based NCR Corp., said NCR also is exploring GPS, in response to requests from customers. But Evans warns that expectations for the technology may not be realistic. He said law-enforcement agencies rarely respond in time to use GPS to catch criminals in the act.

The devices can be useful, however, in locating a discarded machine.

"It is limited in usefulness because most of the time what you find is a beat-up, useless carcass in a ditch or in a riverbed," Evans said. "The bottom line is that GPS is often very effective as a litter-control device."

Haze Lancaster, president of Morrisville, N.C.-based distributor and deployer ATM USA LLC, said that recovered ATMs rarely yield reusable parts. "Usually the whole machine is trashed," he said. "To get inside, (thieves) usually pry the door open and damage the dispenser, so there aren't a lot of parts we can save."

What's Important Some experts warn that GPS technology is not yet effective at tracking ATM thieves. Companies developing GPS devices say future GPS applications will improve the likelihood of recovering machines and apprehending criminals. Until prices come down, GPS is expected to be used on selected ATMs in high-risk locations.

Nickelson said the challenge for companies interested in creating GPS applications for the ATM is that the device must "see the sky." In other words, if the GPS device is placed inside the metal box of the ATM or if the stolen ATM is placed in a panel van or other enclosed vehicle, the signal will not be detectable.

"Don't get me wrong, I know a lot of people that are doing work with GPS and there is some great stuff out there," he said. "People just need to realize that for ATMs it is not 100 percent effective. A GPS today will increase your chances of recovery, I'd say, by about 50 percent, because a lot of these crimes involve someone either dragging the ATM behind a truck or just throwing it in the back of a pickup truck."

"But when you are dealing with organized criminals who will quickly put the machine in a panel van, it is not going to work," he added.

The answer to that problem may be a technology called "assisted GPS." Rather than sending a signal directly to satellites, assisted GPS uses existing cellular phone networks to send a signal to a cellular tower or base, which would then transmit the signal to a satellite.

Nickelson said that technology is expected to greatly improve the reliability of picking up a signal in any environment.

Until that technology is introduced, Nickelson said, deployers should consider bolting down ATMs. "If you can't move it, there is no need to track it," he said.

Another company that hopes to realize the promise of GPS is San Francisco-based financial services firm Swipe USA. It plans to launch a GPS feature for its ATMs in the fall.

However, Global Investigative Group, Swipe and NCR should have little competition when it comes to offering GPS in the United States. In Europe, there are at least two companies that offer devices.

Rachel Hoy, a spokesperson for London-based Travelex Holdings Ltd., said Travelex has introduced a GPS device for ATMs in the United Kingdom, but company officials were unable to elaborate, "due to security issues." Manufacturer Wincor Nixdorf International also is touting a GPS device for its ATMs in Europe, but company officials could not be reached for comment.

Lancaster, whose company sells ATMs made by Triton, Tranax and Tidel, among others, said none of the manufacturers ATM USA works with are offering GPS devices.

Likewise, officials at manufacturers such as Diebold Inc., Western Reserve Group Services Inc. and Fujitsu all said their companies are not exploring GPS applications.

Beyond the ability of GPS to catch criminals, another concern about the technology is the cost.

Like any other technology, the price for GPS devices is expected to decrease over time, but Nickelson estimates that most GPS devices cost about $1,200 each.

With costs that high, the most likely use for the device would be in high-risk settings.

"One has to be selective with the machines they decide to use GPS on," wrote Ron Christensen, president of Swipe USA, in an e-mailed response. "But we predict pricing to come down over the years making it possible for all machines to leverage GPS capability."

Christensen said Swipe plans to launch a GPS feature for its ATMs in the fall.

Lancaster said, when his company has had a problem with ATM theft, it usually involves a group of criminals hitting ATMs in a small area. "I think what we would be most interested in something that we could install temporarily in locations where we were having trouble. I don't see GPS being very widespread. I see it as something that would be very localized."