A New Era of ATM Tech and Crime Tactics

On September 2, 1969, the first Automated Teller Machine (ATM) - called the Docuteller - started doling out dollars at Chemical Bank (now Chase Bank) in Rockville Center, New York. Over the past 35 years, ATMs have undergone significant evolution, transforming from simple cash dispensers to sophisticated, multifunctional devices designed to enhance both security and convenience for users.

The ATM Industry Association (ATMIA), a global non-profit organization dedicated to advancing the ATM industry, held its 26th annual conference dedicated to ATM industry education in early February. With the tagline "A New Era of A I => ATM Intelligence," the 2025 ATMIA US Conference in Orlando focused on several hot technology and security topics.

AI and ATM Intelligence: The conference highlighted the integration of AI technologies in ATMs, aiming to enhance customer experience and operational efficiency.
Financial Inclusion: Discussions centered around how ATMs can play a crucial role in promoting financial inclusion and accessibility.
Innovation and Sustainability: The importance of innovation in ATM technology and sustainable practices was a recurring theme.

ATM Security Enhancements
At the conference, there was a b emphasis on improving ATM security measures to combat rising criminal attacks and fraud. Following are some key takeaways that were discussed.

Quantum Computing Threats: The advent of quantum computing poses a significant threat to traditional encryption methods used in ATM networks. Financial institutions are encouraged to adopt quantum-resistant encryption to safeguard sensitive financial information.
Compliance with TR-31 Regulations: New regulations, such as TR-31, set stricter requirements for key block management and encryption within ATM networks. Compliance with these standards is essential to ensure the secure exchange and storage of sensitive data.
Enhanced Security Technologies: The conference highlighted the importance of adopting advanced security technologies, such as Intelligent Banknote Neutralization Systems (IBNS) and biometric authentication, to protect against criminal attacks and fraud.
AI and Machine Learning: The use of AI and machine learning in detecting fraudulent activities and optimizing cash logistics was emphasized as a way to enhance security and operational efficiency.

ATM Crime Evolution
In recent years, the evolution of technology has given rise to a new breed of sophisticated ATM crimes. In addition to physical attacks using chains, bombs, and vehicles to steal the machines, criminals are deploying advanced card skimming devices, jackpotting malware, and even drones to exploit ATM vulnerabilities. In 2022, thieves in France flew a small drone through a ventilation shaft to push a button that opened the door to an ATM and pilfered nearly $150,000!

In a letter to U.S. lawmakers last year regarding the Safe Access to Cash Act (H.R. 3398), the American Bankers Association said that it had noted an uptick in criminals targeting ATMs as banks and financial institutions deploy "stronger internal and external defenses" to protect from attacks.

Some security measures that financial institutions can take to make ATMs more secure and protect service workers and customers include:

Enhance lighting for exterior ATMs
Don't hide ATM with landscaping
Have high-quality, noticeable video surveillance systems
Use GPS sensors to sense if criminals move the ATM
Do background checks and due diligence on ATM service providers
Use smart technology such as Intelligent Banknote Neutralization System (IBNS), which marks cash to trace it back to the ATM, or 3SI's ATM and Cassette Tracker .

Criminals continue to target ATMs because they provide lucrative instant payouts. There is no silver bullet to mitigating these crimes. But having robust security measures in place to combat physical and remote threats, and collaborating with vendors, deployers, service companies and law enforcement is the key to responding and defending against these growing crimes.