The rise of new financial technology, referred to as “fintech,” is changing traditional in-branch banking, and causing some financial institutions to re-evaluate their bricks-and-mortar investments. Despite this digital shift, one area that remains strong for financial institutions is the use of ATMs. According to research and consulting firm, RBR, ATM and cash withdraw numbers continue to increase. The company’s 2016 market research forecasts the number of ATMs worldwide to grow to four million by 2021.
ATMs are a cost-effective way to serve customers, especially in rural areas where it may not make sense to operate a full-scale retail bank branch. By placing ATMs in high-traffic locations, banks or credit unions can reach a lot of people, and even be profitable with ATM transaction fees.
However, when investing in new ATMs, security is an area that should be evaluated. Criminals continue to target ATMs, particularly those that are located off-site from a branch. Because they are unstaffed, ATMs can be easier targets for vandals and thieves. Loitering and property damage are common, while crimes like skimming and shimming (where criminals take data from a card’s chip) continue to be a problem.
Without the right ATM security plan in place, financial institutions risk losing business if customers don’t feel safe, spending a lot of money on unplanned security, and harming the financial institution’s reputation.
Convergint Technologies, paired with our partner March Networks, has security technology to minimize these issues.
1. Install Video Surveillance
Not only will video surveillance help investigate a crime after the fact, it can also help detect and alert suspicious activity at an ATMs. When integrated with intelligent software and analytics, an advanced IP video solution can alert staff if someone is lingering at the machines but not conducting a transaction. This could be someone installing a skimming device or other tool designed to steal customer data. Install cameras around machines, and also inside the ATMs in order to capture the highest quality images. There are IP cameras available that are purpose-built for ATMs to capture images day and night.
2. Plan Ahead and Consult Experts
Thinking about the location of an ATMs and always planning for high-traffic, well-lit locations is essential. If possible, ensure ATMs are inside an enclosure and make sure that only authorized personnel have access to the machines for servicing. Convergint security experts can help with the location of ATMS and cameras.
3. Complete a Threat and Risk Assessment.
Considering the various ways that ATMs can be attacked, including both physical and logical is important. Most leading ATM manufacturers can detail the measures used to harden against both types of attacks. Convergint can complete a risk assessment for financial institution security.
Convergint Technologies can help by completing a risk assessment and make recommendations for video surveillance solutions, and camera and ATM locations.
Content originally authored by March Networks’ Dan Caggiula.