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2025’s Biggest ATM Security Challenges and How to Prepare for Them
Staying ahead of the curve to safeguard sensitive financial information will require a forward-thinking approach in 2025 and beyond. From the threats of quantum computing used in cybercrime to stricter compliance requirements and essential technology upgrades, ATM security will feel more complex than ever in the new year.
January 6, 2025
Financial institutions are facing a new wave of security challenges that affect ATM networks around the globe, especially as the digital landscape rapidly changes, seemingly by the minute. Staying ahead of the curve to safeguard sensitive financial information will require a forward-thinking approach in 2025 and beyond. From the threats of quantum computing used in cybercrime to stricter compliance requirements and essential technology upgrades, ATM security will feel more complex than ever in the new year.
At Trusted Security Solutions, we’re committed to staying ahead of the trends. In fact, we’re already working to prepare our customers for the looming TR31 deadline, which is just one of the storylines in 2025 that we’re watching closely. If you need help with TR31 compliance, contact us today!
Challenge #1: Quantum Computing Threats
What’s Happening: The advent of quantum computing is expected to revolutionize many areas of technology, but it also brings significant challenges to data security. Quantum computers, which are still in early development, can solve complex calculations far more efficiently than classical computers. This breakthrough capability could soon render traditional encryption methods obsolete, presenting an unprecedented threat to secure communications, including those within ATM networks.
Why It Matters: While quantum computing is not yet a mainstream threat, experts are concerned about its potential to disrupt current encryption methods. ATMs rely on encrypted communications to protect customer information and ensure transaction security. If traditional cryptographic protocols can be cracked by quantum-powered attacks, sensitive financial data may be exposed, and ATM networks may be at risk of breaches and fraudulent activities.
How to Prepare: Financial institutions should start planning for “quantum-resistant” encryption now, even though full-scale quantum computing is still a few years away. This may involve adopting post-quantum cryptographic algorithms designed to withstand quantum attacks. By investing in quantum-safe technology and working with vendors who prioritize cutting-edge security, institutions can prepare for a quantum-enabled future before it becomes a widespread threat.
Our Take: Post-quantum computing might feel like a sci-fi novel, but as we’ve seen with the explosion of generative AI and AI computing, it is likely closer than we think to becoming part of our daily lives.
Challenge #2: Compliance with New TR-31 Regulations
What’s Happening: As ATM security evolves, so do the regulatory standards designed to protect customers and financial institutions alike. In 2025, a key change will come in the form of TR-31 regulations, which set stricter requirements for key block management and encryption within ATM networks. These standards aim to create more secure, standardized encryption practices, ensuring the safe exchange and storage of sensitive data.
Why It Matters: Compliance with TR-31 regulations is essential for financial institutions to maintain the integrity of their ATM networks and avoid regulatory penalties. These standards impact the encryption protocols and key management practices that safeguard ATM operations. By aligning with TR-31, financial institutions can enhance security across their networks, reduce vulnerabilities, and build trust with customers by demonstrating a commitment to secure data handling.
How to Prepare: Preparing for TR-31 compliance requires a thorough assessment of current encryption protocols and key management practices. Institutions should consider adopting key management systems that are designed to meet TR-31 standards, such as the TSS A98 Key Management System. Working with experienced security partners can also help institutions navigate these new regulations and ensure a seamless transition to TR-31 compliance. Proactive planning now can prevent costly and disruptive changes down the line.
Our Take: January 2025 is right around the corner, and there are many financial institutions that are behind schedule. It’s not too late, but time is running out.
Challenge #3: Upgrading Outdated Technology
What’s Happening: Many ATM networks still rely on legacy hardware and software that may not support the latest security features or compliance standards. As technology advances, these outdated systems become more vulnerable to cyberattacks, malware and operational failures. Adding to this challenge is an increasing need to move towards cloud-based systems while maintaining compliance and security. Cloud migrations have been slow due to the need to maintain compliance when hosting data in the cloud. In 2025, consolidating equipment and upgrading these legacy systems will be critical to maintaining security and operational efficiency.
Why It Matters: Relying on outdated technology in ATM networks and data centers exposes financial institutions to numerous security risks. Older systems are often incompatible with modern security protocols and lack the flexibility needed to adapt to new threats. For instance, they may not support remote key loading (RKL) or other advanced key management techniques, making them more susceptible to unauthorized access. Or, most commonly, they might not support a migration towards cloud-based systems. Additionally, legacy systems may struggle to meet regulatory requirements, such as those outlined in TR-31, which compounds the risk of non-compliance.
How to Prepare: To ensure ATM networks remain secure and compliant, financial institutions should conduct a comprehensive review of their hardware and software infrastructure. Key steps include implementing modernized key management solutions, like the TSS A98, that support remote key loading and offer robust security features. Software updates, hardware replacements, and integration of encryption protocols compatible with emerging standards can also enhance resilience against future threats. By investing in a technology refresh, institutions can improve both security and customer experience.
Our Take: Network upgrades are expensive and time-consuming, but with TR-31 compliance, TR-34 not long after and the explosion of AI technologies, it seems likely that we will see more system upgrades in the next 2-3 years. It is critical to start conversations today that allow your organization to make adjustments as needed.
Conclusion
The security landscape for ATMs is rapidly changing, and 2025 promises to bring new challenges that require proactive planning and strategic investment. Quantum computing, TR-31 regulations, and technology upgrades represent just a few of the shifts that financial institutions must address to maintain robust ATM security.
By understanding these trends and taking early action, institutions can future-proof their ATM networks, ensuring compliance with evolving standards and building resilience against emerging threats. Preparing now, rather than reacting later, can mean the difference between a secure, compliant network and a vulnerable one.
Included In This Story
Trusted Security Solutions - A98
Expertise You Can Bank On
Trusted Security's A98 System provides a compliant and efficient solution for establishing unique initial keys in each ATM. A98 uses remote key loading when possible and alternatively uses its patented Comvelope© solution to automate key loading of legacy ATMs.
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SecurityPresented ByDiebold Nixdorf
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