News

GPS isn't the only answer

Industry experts agree that ATM owners and operators must deploy a variety of solutions in order to combat ATM raids.

September 13, 2006

Want to learn more?Read this week's cover,Cost, tech prevent widespread ATM use of GPS

Even if global-positioning technology is installed in an ATM, some experts recommend combining it with other security measures - such as dye bombs or Level 1 safes - to provide effective theft prevention.

"My recommendation would be to buy a Level 1 safe and then put GPS inside for total security," said Jerry Gregory, chief development officer of Richardson, Texas-based Cash Carriers USA. Cash Carriers serves ATMs in Texas, Oklahoma and New Orleans.

"ATMs without a Level 1 safe are the primary reason we have these ram raids today," Gregory said.

In order for a safe to rank as a 24-hour Level 1 safe, it must meet specific criteria - criteria established by the Underwriters Laboratories and American National Standards Institute.

Level 1 safes are constructed of steel with a tensile strength of at least 50,000 pounds per square inch, making them more secure than typical business-hours safes. Level 1 safes also must withstand attacks using pry bars, wrenches and similar tools for at least 30 minutes - as opposed to the five-minute maximum attack time for business-hours safes.

Other factors: Law-enforcement. Mark Coons of Charlotte, N.C.-based American Special Risk says police response time to a crime plays a key role in ATM safety and GPS effectiveness.

"If the ATM is not tracked and the criminals caught relatively near the time of the crime, the odds of recouping the cash and apprehending the criminals quickly will go down quite dramatically," Coons said.

In my view, investing in security is part of thinking about long-term survival and prosperity .

-- Mike Lee,
ATMIA

The big picture

In addition to safeguards like Level 1 safes, Gregory and other industry insiders say preventative measures that deter ram raids also are imperative.

"Anything which can improve the possibility of preventing a crime or deter such a crime can only be a benefit to the ATM owner and the industry in general," Gregory said. "If we fail to address the ram-raid problem by policing our own industry, you can be sure someone (the government) will address it for us."

Gregory predicts regulations from industry associations or governing bodies will eventually be imposed on the industry, with minimum requirements including such things as Level 1 safes. Until then, he says, independent sales organizations must remain diligent when it comes to seeking ways to improve security.

"Cash Carriers USA has invested tens of thousands of dollars trying to produce a security device to prevent ram raids," Gregory said in an e-mail. "Our patented Phase II Cash Protect product solved one of the major problems with the Diebold 1074 ATMs; but I must be honest and say that our Phase II Cash Sphere for dial-up ATMs is mediocre at best. The Cash Sphere will not move from its installation point, but the ATM in most cases will tear away from our product once rammed by a vehicle. The only true fix for ram raids is a Level 1 safe, in our opinion."

GPS is one of many topics being discussed as part of the ATM Industry Association's ATM Risk Management service. The automated online service deals with crime risks as well as business and financial risks, and includes security solutions - such as GPS devices, use of banknote degradation systems, anti-lasso devices, bollards, enhanced anchorage, ATM plinths, chains, alarms and flashing warning lights - for preventing and dealing with physical ATM crimes.

Mike Lee, chief executive of ATMIA, said the new service draws on eight years of industry experience in ATM insurance, as well as three years of experience developing international best practices through the Global ATM Security Alliance.

Lloyd's of London has underwritten the risk management service for ATMIA. (For more information about the service, read, ATMIA launches online risk-assessment survey.)

"In my view, investing in security is part of thinking about long-term survival and prosperity," Lee said.

And though Lee agrees that factors such as cost and technology are impeding widespread GPS, he says GPS is "a very good way of reducing ATM crimes."

"A GPS device can send signals from deep inside buildings, and so they allow deployers to track stolen ATMs before they are forced open," he said.

GPS tracking also helps law-enforcement establish a hot trail, so some "thieves may be caught red-handed, leading to arrests," Lee said.

Included In This Story

Diebold Nixdorf

As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.

Request Info

Learn More