CHAPTER TWO

LITERATURE REVIEW

2.1 Cybercrime

The term cybercrime was coined by Peter Cassidy, Secretary General of the Anti-Phishing

Working Group, to distinguish computer programmes (and coordinated, interlocking sets of

programmes) that are designed specifically to animate financial crime from other kinds of

malevolent packages (Shehu, 2020).

‘Cyber Crime’ has evolved from two words ‘cyber’ and ‘crime’. ‘Crime’ is more or less known to

each individual on his own stand point, while ‘cyber’ is almost vague in meaning to the same. So,

if any time anybody uses the prefix ‘cyber’, we simply mean, he is talking about something is

doing online or there has a certain networking system. Actually, anything related to Internet falls

under the cyber category.

Computer crime or cybercrime is a form of crime where the Internet or computers are used as a

medium to commit a crime. Issues surrounding this type of crime have become high-profile,

particularly those surrounding hacking, copyright infringement Child pornography, and child

grooming.

Cybercrime is a criminal activity done using computers and the Internet. This includes anything

from downloading illegal music files to stealing millions of dollars from online bank accounts.

Cybercrime also includes non-monetary offenses, such as creating and distributing viruses on other

computers or posting confidential business information on the Internet. Cybercrime is a broadly

used term to describe criminal activity committed on computers or the Internet. Some of it is

punishable by the laws of various countries, whereas others have a debatable legal status.
Cybercrime also referred to as computer crime is a crime that involves a computer and a network.

In some cases, the computer may have been use to commit the crime, and in other cases, it may be

the target of the crime (Moore, 2020). According to Halder & Jaishankar (2021), cybercrimes can

be defined as offences that are committed against individuals or groups of individuals with a

criminal motive to intentionally harm the reputation of the victim or cause physical or mental harm,

or loss, to the victim directly or indirectly, using modern telecommunication networks such as

Internet (networks including chat rooms, emails, notice boards and groups) and mobile phones

(Bluetooth/SMS/MMS).

Latha (2019) states that cybercrimes are nothing but crimes of the real world perpetuated in the

medium of computer and hence there is no difference in defining a crime in the cyber world and

real world. Cybercrime may threaten a person or a nation's security and financial health (Morgan,

2020).

Cybercrime has emerged as a significant threat in the digital age, affecting individuals, businesses,

and governments worldwide (McQuade, 2019). With the rapid advancement of technology and the

widespread use of the internet, criminals have found new avenues to exploit vulnerabilities and

perpetrate various illicit activities. This essay provides a comprehensive overview of cybercrime,

exploring its types, motivations, impacts, legal frameworks, and the challenges faced in combating

this complex phenomenon.

Cybercrime encompasses a diverse range of offenses, each exploiting the digital landscape for

nefarious purposes (McQuade, 2019). These include hacking and unauthorized access to computer

systems, where malicious actors exploit security loopholes to gain unauthorized entry.

Additionally, malware distribution involves the dissemination of viruses, ransomware, and

spyware to compromise systems and extract sensitive information. Phishing and social engineering
attacks trick individuals into revealing personal data, while online fraud encompasses credit card

fraud, identity theft, and crypto currency scams. Cyberbullying and online harassment inflict

psychological harm, and intellectual property theft and digital piracy undermine creativity and

innovation.

The motivations driving cybercriminals are as varied as the offenses they commit (United Nations

Office on Drugs and Crime, 2020). Some seek financial gain by targeting lucrative targets such as

financial institutions or e-commerce platforms. State-sponsored actors engage in cyber espionage

to gather intelligence and gain a strategic advantage. Hacktivists exploit digital platforms to

promote their ideological or political agendas, while cyberbullies derive satisfaction from

tormenting their victims anonymously. Cybercrime also serves as a means of revenge or

disruption, enabling criminals to harm individuals or organizations from a distance.

One of the defining characteristics of cybercrime is its global reach (McQuade, 2019). The

borderless nature of the internet allows criminals to operate from anywhere in the world, often

crossing international boundaries to evade detection and prosecution. This global reach poses

significant challenges for law enforcement and legal authorities, as different jurisdictions may have

varying laws and regulations regarding cybercrime. As a result, international cooperation and

coordination are crucial to effectively combat cyber threats.

The impacts of cybercrime are far-reaching and multifaceted (World Economic Forum, 2020).

Financial losses resulting from online fraud and ransomware attacks can cripple businesses and

individuals alike. Data breaches compromise sensitive information, leading to identity theft and

potential exploitation. The dissemination of false information through social media can manipulate

public opinion and destabilize societies. Moreover, cyberbullying and online harassment can cause

severe psychological and emotional harm, especially among young individuals. Critical
infrastructure such as power grids and communication networks are also at risk, with potential

consequences for public safety and national security.

Governments and international organizations have recognized the urgency of addressing

cybercrime and have developed legal and policy frameworks to combat it (Council of Europe,

2019). One significant example is the Council of Europe's Convention on Cybercrime, also known

as the Budapest Convention. This treaty aims to harmonize laws and facilitate cooperation among

participating countries in investigating and prosecuting cybercrime. Additionally, many countries

have enacted their own cybercrime laws, empowering law enforcement agencies to take action

against cyber offenders within their jurisdiction.

Despite efforts to combat cybercrime, numerous challenges persist (World Economic Forum,

2020). The ever-evolving nature of technology means that cybercriminals constantly find new

ways to exploit vulnerabilities. This demands a continuous effort from cybersecurity experts to

stay ahead of the curve. Moreover, the anonymity offered by the internet makes it difficult to trace

and identify cybercriminals, making prosecution challenging. Limited resources and the lack of

international standardization in cybercrime laws and procedures also hinder effective global

collaboration.

Cybercrime is a complex and ever-evolving phenomenon that demands comprehensive

understanding and concerted efforts to combat effectively. Understanding the various types of

cybercrime, the motivations behind it, and its far-reaching impacts is crucial in developing robust

cybersecurity strategies. International cooperation, legislative frameworks, and awareness-raising

initiatives are vital in safeguarding individuals, organizations, and societies from the threats posed

by cybercriminals. A multi-faceted approach that involves collaboration between governments,

private sector entities, law enforcement, and individuals is key to creating a secure digital

environment for the future.

2.2 OVERVIEW OF FIRST BANK OF NIGERIA

First Bank of Nigeria is founded in 1894 as the oldest bank in Nigeria and one of the largest and

most influential financial institutions in Nigeria. The Bank was founded by Sir Alfred Jones, a

shipping magnate from Liverpool, England. With its head office originally in Liverpool, the Bank

commenced business on a modest scale in Lagos, Nigeria under the name, Bank of British West

Africa (BBWA).

In 1912, the Bank acquired its first competitor, the Bank of Nigeria (previously called Anglo-

African Bank) which was established in 1899 by the Royal Niger Company. In 1957, the Bank

changed its name from Bank of British West Africa (BBWA) to Bank of West Africa (BWA). In

1966, following its merger with Standard Bank, UK, the Bank adopted the name Standard Bank

of West Africa Limited and in 1969 it was incorporated locally as the Standard Bank of Nigeria

Limited in line with the Companies Decree of 1968.

Changes in the name of the Bank also occurred in 1979 and 1991 to First Bank of Nigeria Limited

and First Bank of Nigeria Plc, respectively. In 2012, the Bank changed its name again to FirstBank

of Nigeria Limited as part of a restructuring resulting in FBN Holdings Plc (“FBN Holdings”),

having detached its commercial business from other businesses in the FirstBank Group, in

compliance with the new regulation by the Central Bank of Nigeria (CBN).

The bank has played a crucial role in the development of the Nigerian banking sector and has

contributed significantly to the nation's economic growth.

In 1991, First Bank of Nigeria introduced the first Automated Teller Machine (ATM) as part of

convenient and online real time banking. Also, in 2011, First bank launched the first cash deposit

ATM in Nigeria.

2.3 CYBERCRIME IN NIGERIA

The arrival of the internet and computers has opened many opportunities for the young and old in

the global community to have access to the world from their homes, offices and cyber cafes. The

coming of smartphones has made internet access easier and faster (Saulawa and Abubakar, 2019;

Clough, 2020). Unlike in the past when the ability to commit computer related crimes was largely

limited to those with the access and skill sets; nowadays, technology is easily accessible, thus,

making it available to both offenders and victims (Clough, 2020). Clough (2020) suggested that,

with the proliferation of information technology and the convergence of digital and

communication devices, the internet has transformed the way in which we interact and conduct

businesses across the globe. Even though this has been largely a positive development, there has

also been a darker side to this development because virtually every advance made in the digital

domain has been accompanied by a ‘corresponding niche to be exploited for criminal purposes’.

Sub-Saharan African (SSA) is the last continent to embrace the internet and mobile technologies.

Internet penetration in Sub-Saharan Africa has been on the increase with most countries depending

on privately owned internet access points such as cybercafés’ for their daily internet activities

(Longe, Ngwa, Wada and Mbarika, 2019).

Ajayi (2020) states that the ICT revolution in Nigeria began after the return of democratic rule in

1999. After coming out of a long period of military dictatorship which had been apathetic towards

the development of ICT in the country as it was perceived as posing a security threat to the military

junta, the new democratic government of Nigeria realised that the digital divide in the country
would continue to widen unless the issue of developing ICT in the country was given the priority

it deserved.

Cybercrime has been one of the eluding issues in the online global transactions in Nigeria because

of the endemic nature of computer related frauds and crimes. Due to the integration of digital

technology across the globe, the economy of most nations across the globe is accessible through

the use of information and communication technology (Abubakar and Saulawa, 2019). According

to Adesina (2019), Cybercrime is a very popular crime in Nigeria as criminals are widely known

for luring people across the planet into various fraudulent scams such as spam mails and ‘cleverly

designed but cash-laundering partnership’ scams.

Nigeria has a population of about 220 million and with about 97 million Internet users which

represents an internet penetration of approximately 52% (Internet World Stats, 2022). Nigeria is

currently ranked 24th in the world in terms of complainant reporting of cybercrime and ranked

12th in terms of complainant loss (Internet Crime Complaint Centre, 2020). This is seen as a

significant improvement to an Internet Crime Report (2020) report that ranked Nigeria third with

5.8% just behind United State of America with the highest prevalence of cybercrime activities in

the world.

2.3.1 TYPES OF CYBERCRIME

Niranjanamurthy, and Chahar (2021) outlined the following as the types of cybercrime:

Accidental or Intentional Threats can occur without prior intent. For instance, physical failures or

malfunctions of a computer system can lead to an unexpected attack. However, intentional threats

are those that are carried out through deliberate acts. These include performing a casual network

examination, launching sophisticated attacks, and taking advantage of a system's knowledge.

Active or Passive Threats occur without premeditated, intentional threats are carried out through

deliberate actions. These include attacks that are designed to affect an asset's security. Examples

of intentional threats include performing routine checks on a computer network or carrying out

sophisticated attacks using a system's knowledge.

Active threats are intentional threats that can cause a change in the state of a system, such as the

destruction of equipment or the modification of data. On the other hand, a passive threat is not

designed to affect a system's operations or resources. Instead, it aims to collect information from

a plan to improve its efficiency. Some techniques that can be used to perform passive threats

include monitoring and eavesdropping.

Threat Source: A threat source is an entity that seeks to gain unauthorized access to a person's or

company's security controls. It can also benefit from the breach by making money from the sale of

stolen goods.

A cyber threat actor is a person or group that can perform an attack or take advantage of an

accident. For instance, the group is considered the Threat Source if an organization takes advantage

of an employee's corruption.

Vulnerability: The intentions of threat actors and sources are often realized through exploiting

weaknesses in security controls. For instance, a vulnerable person could easily access the system

if a software patch is unavailable. Even good technical controls can be susceptible to exploitation

by social engineering attacks.

Security Risk: This refers to the possibility that a threat will likely occur if the vulnerabilities in a

network system are not fixed. Most network devices operate with some degree of exposure to

threats as the complete elimination of risk avenues is too expensive to fix. As such, it is a national

cyber security policy strategy to ensure the first approach is that all stakeholders assume
responsibility for risk and take necessary steps to mitigate such risk by ensuring government bodies

provide reliable services to the public, maintain citizen-to-government communications, protect

sensitive information as well as safeguard national security.

Cybercrime has become an ever-present threat in the digital age, leveraging technology to

perpetrate a wide range of illicit activities (McQuade, 2019). As the world increasingly relies on

digital platforms and the internet for various purposes, criminals have found new ways to exploit

vulnerabilities and target unsuspecting victims. This write-up aims to provide an in-depth

exploration of the types of cybercrime, shedding light on the various offenses that pose risks to

individuals, businesses, and governments alike

Hacking and Unauthorized Access: Hacking involves unauthorized access to computer systems or

networks with the intent of gaining sensitive information or causing disruption (McQuade, 2019).

Cybercriminals use sophisticated techniques to exploit weaknesses in security measures, allowing

them to infiltrate networks, steal data, or take control of systems. Such intrusions can have severe

consequences for organizations, leading to data breaches, financial losses, and damage to

reputation.

Malware Distribution: Malware refers to malicious software designed to infiltrate and harm

computer systems (McQuade, 2019). Cybercriminals employ various forms of malware, including

viruses, worms, Trojans, and ransomware, to compromise devices and extract valuable data or

demand ransom payments. Ransomware attacks, in particular, have surged in recent years, where

criminals encrypt victims' files and demand payment in cryptocurrency to provide the decryption

key.

Phishing and Social Engineering: Phishing attacks involve deceptive tactics to trick individuals

into revealing sensitive information, such as login credentials, credit card details, or personal data
(McQuade, 2019). Cybercriminals often masquerade as legitimate entities through emails,

websites, or messages, luring victims into unknowingly disclosing their information. Social

engineering exploits human psychology, manipulating emotions and trust to persuade individuals

to disclose sensitive data or perform certain actions.

Online Fraud: Online fraud encompasses various deceptive practices to extract financial gain from

victims (McQuade, 2019). It includes credit card fraud, where stolen card details are used for

unauthorized transactions, and identity theft, where personal information is used to impersonate

the victim for financial gain or other malicious purposes. Other forms of online fraud involve fake

online marketplaces, lottery scams, and fraudulent investment schemes.

Cyberbullying and Online Harassment: Cyberbullying involves the use of digital platforms to

harass, intimidate, or humiliate individuals (McQuade, 2019). This form of cybercrime often

targets young individuals on social media, leading to severe psychological and emotional

consequences for the victims. Online harassment can also extend to adults and may involve

defamation, threats, or the dissemination of private or compromising information.

Intellectual Property Theft and Digital Piracy: Cybercriminals engage in intellectual property theft

to steal copyrighted materials, trade secrets, or proprietary information (McQuade, 2019). Digital

piracy involves unauthorized reproduction and distribution of copyrighted content, such as

software, music, movies, and e-books. These activities harm creators' rights, stifle innovation, and

lead to significant financial losses for content owners.

2.4 AUTOMATED TELLER MACHINE (ATM)

The Automated Teller Machine (ATM) is a revolutionary technology that has transformed the way

individuals conduct banking transactions. Introduced in the 1960s, ATMs have become an
indispensable part of modern banking, offering convenient and round-the-clock access to a wide

range of financial services.

In 1959, the first Automated Teller Machine was introduced in Kingsdale Shopping Center Ohio,

Canada. In the early 1960s, innovative engineers in Sweden, Japan, and Britain created and

developed their own cash machines. In 1965, Mr. James Goodfellow, a British engineer also

developed a card that has PIN stored in it. This invention was to facilitate the

authentications/verification of the user by any human intervention. After looking first hand

experiences in Europe, in 1968 the networked ATM was established in US, by Donald Wetzel. In

1972, the first modern ATM came into operations in UK; the IBM 2984 was designed at the request

of Lloyds Bank. The 2984 CIT (Cash Issuing Terminal) was the first true Cashpoint, similar in

function to today's machines; Cashpoint is registered trademark of loyads TSB in the UK. The All

ATMs were operational online and issued required cash to the customer and it was instantly deduct

from his bank account. Early ATMs allowed customers to withdraw cash using a magnetic stripe

card and a personal identification number (PIN). Over the years, ATMs evolved to offer a more

extensive array of services, including balance inquiries, fund transfers, bill payments, and mobile

phone top-ups.

ATMs function as self-service kiosks that provide customers with access to various banking

services without the need for direct interaction with a bank teller (Freedman, 2019). To initiate a

transaction, customers insert their ATM card into the machine and enter their unique PIN. The

ATM then communicates with the bank's computer system to authenticate the user and process the

requested transaction. Upon successful verification, customers can choose from a menu of

services, withdraw cash, or perform other banking operations.

According to Johnson M. (2020), Automated Teller Machines (ATM) was introduced into the

Nigerian market in 1989, as a matter of fact, the very first ATM in Nigeria was installed by National

Cash Registers (NCR) for the defunct Societe Generale Bank Nigeria (SGBN) in 1989.

Automated Teller Machines (ATM) give valuable payback to the banks and the customers. The

ATMs allow bank customers to withdraw cash conveniently anytime and anywhere other than

actual bank location by automating few of banking transaction services. The customers also get

real time help on other services like balance enquiry, short statement, application for cheque book,

e-cash transfer to other account, and more to customers. This ATM interacts with a card called

ATM card. Initially this card used to interact with ATMs only but nowadays the card can use to

purchase online, make payments for services etc.

According to Kanwal et al (2019), Automated Teller Machines (ATMs) are self-service banking

machines which allows customers to access their bank account with no help of a bank teller. Most

of ATM machines allow customers of various banks to operate basic banking transactions without

going to their bank or their banks ATM machine.

Ogbuji, et al. (2019) postulate that ATM allows a bank customer to conduct his/her banking

transactions from almost every other ATM machine in the world. However, the spread of the

machines has been generating a lot of heat, as customers face a splurge of frustration in using it;

either the machines will not dispense cash, or debit transactions when cash is not dispensed or

cards get stuck in them. Dapo A.A (2020) indicate that the proliferation of the machines is giving

more concern. As with every other technological breakthrough the ATMs have generated

astronomical challenges and problems for the beneficiaries of financial services in Nigeria. Most

users of ATM have encountered the problem of Scam. Apart from epileptic services rendered by

the machines, faceless crooks steal from the accounts of hundreds of bank customers via the ATM
technology. The fraudsters perpetrate this financial crime by stealing the personal identification

number, PIN, a special secret code that grants access to the usage of the cards, and consequently,

getting hold of the funds of the susceptible ATM users.

Rose, P.S (2021) cited by Abor, describes ATMs as follows: “an ATM combines a computer

terminal, record-keeping system and cash vault in one unit, permitting customers to enter the

bank’s book keeping system with a plastic card containing a Personal Identification Number (PIN)

or by punching a special code number into the computer terminal linked to the bank’s

computerized records 24 hours a day”. Once access is gained, it offers several retail banking

services to customers. They are mostly located outside of banks, and are also found at airports,

malls, and places far away from the home bank of customers. They were introduced first to

function as cash dispensing machines. However, due to advancements in technology, ATMs are

able to provide a wide range of services, such as making deposits, funds transfer between two or

accounts and bill payments. Banks tend to utilize this electronic banking device, as all others for

competitive advantage.

Using an ATM card, a debit card, or a credit card, bank patrons can electronically access their

accounts and withdraw or deposit funds, make payments, or check balances. ATMs have

eliminated the need to enter a bank for basic transactions and allow access to accounts at machines

throughout the United States. Financial institutions started charging fees to use their ATMs in the

mid-1990s, making the transactions very profitable for the host banks. The use of ATMs has cut

service staff in traditional banks, impacting employment in the industry. As many machines are

now commercially owned and leased in public venues, a technical industry for cresting, leasing,

and maintaining the machines has developed (Rose, P.S, 2021).

ATMs offer numerous benefits to both customers and financial institutions. For customers, ATMs

provide unparalleled convenience, allowing them to access their accounts and perform transactions

at any time of the day, regardless of the bank's operating hours. Moreover, ATMs reduce the need

for visits to physical bank branches, saving time and effort. For financial institutions, ATMs help

reduce operational costs by automating routine transactions, resulting in improved efficiency

(Humphrey & Willesson, 2020).

The widespread use of ATMs has necessitated robust security measures to protect customers'

financial information and prevent fraudulent activities. Advanced encryption techniques and

secure communication protocols ensure that sensitive data remains protected during transactions.

Banks also implement measures like card skimming detection, PIN encryption, and biometric

authentication to counteract card cloning and unauthorized access to ATMs.

As technology continues to advance, ATMs are adapting to meet the evolving needs of customers

and financial institutions. Modern ATMs now offer contactless card readers, allowing customers

to conduct transactions by simply tapping their cards or smartphones. Integration with mobile

banking applications and real-time transaction updates are becoming standard features.

Furthermore, some ATMs are equipped with additional features such as check deposit and

currency exchange, expanding their utility for users.

The Automated Teller Machine has revolutionized the banking industry by providing

unprecedented convenience and accessibility to customers (Freedman, 2019). From its humble

beginnings in the 1960s, the ATM has evolved into a vital component of modern banking services,

enabling individuals to conduct financial transactions efficiently and securely. With continuous

advancements in technology, the future of ATMs promises even more streamlined and user-

friendly experiences, further solidifying their position as a cornerstone of modern banking.

Ogbuji, C. N. et al. (2019), observed that Automated Teller Machines (ATMs) is one of existing

replacements of the cascading labour-intensive transaction system effected through what is

popularly referred to as paper-based payment instruments. An automatic teller machine allows a

bank customer to conduct his/her banking transactions from almost every other ATM machine in

the world. The ATM, therefore, performs the traditional functions of bank cashiers and other

counter staff. It is electronically operated and as such response to a request by a customer is done

instantly.

2.4.1 About Automated Teller Machine

An Automated Teller Machine has following parts in it:

CPU- It is used to control interfacing of user and transaction devices through specific software.

Most ATMs are using Windows 2000, Windows NT operating system.

Card Reader- There is a card reader. It reads user’s card from magnetic strip or chip. This is the

process to identify the user. The magnetic strip or chip has little information about the user.

PIN Pad- It is an alphanumeric keypad. A user provides the PIN and other instructions through it.

Display terminal- There is a display panel that is useful to interact with the user. All given

instructions appeared on this terminal. It has some function keys on both sides to give necessary

inputs to the CPU. Some of the ATMs have touchscreen terminals also.

Printer- There is a printer to provide actual status reports or last transaction reports to the user for

his record. It is an integrated device with ATMs.

Security Camera- Nowadays a hidden camera is also an integrated part of this ATM to upgrade

physical security. This camera works 24 hours continuously and records all activities done in ATM

cabin.

Vault- It is a placeholder to store the parts of the machine that is access restricted.
Housing- Housing is a hardcover that protects all inner parts and cash from theft.

Figure 1: Automated Teller Machine (Source: Punch Newspaper)

2.4.2 Problem with the Use of ‘PIN’
Bank provides a 4-digits secret number to the user called PIN with ATM cum Debit card which

user can change at anytime through ATM machine. This secret number, PIN, is static type i.e. once

set it; access will be done after using it in each ATM transaction. So a user keeps the PIN secret

and not to share anyone. An unauthorized access may possible if anyone steals the Debit card with

PIN or guess the PIN. It is possible, generally users set the PIN with easy going numbers; like date

of birth, vehicle number, house number, etc. in most cases so the chances to hack it more. This is

the main threat to use ATM-cum-Debit card. To minimize this problem here a protocol is proposed

by which it can solve. A very common problem is also faced by users. If the real user gets ill or

there is any circumstances in which the user may not in the position to transact through ATM user

can authenticate another one to transact his account on behalf of him/her. The person called bearer

or third party who is authenticating to transact account. It is the process just like a user gives the
bearer cheque to a person for withdrawing the amount on behalf of the user. There are many

different attacks such as shoulder surfing, data skimming, fake machine etc. These attacks will be

discussed on next page.

2.5 ATM CYBERCRIME

Automated Teller Machines (ATMs) have revolutionized banking services, providing customers

with convenient access to their accounts for various financial transactions. However, the

widespread adoption of ATMs has also attracted the attention of cybercriminals, leading to an

increase in ATM-related cybercrime. This elaborate write-up explores the various types of ATM

cybercrime, the tactics used by criminals, the impact on individuals and financial institutions, and

the strategies employed to mitigate these threats.

ATM cybercrime refers to criminal activities that target automated teller machines (ATMs) using

various techniques and technologies. These crimes aim to exploit vulnerabilities in ATMs to steal

cash, customer data, or perform other illicit activities. Using a report on global ATM frauds

conducted in 2019 ATM attacks and frauds can be categorized into the following:

Skimming: skimming involves stealing information off a credit card during a legitimate

transaction. This type of scheme usually occurs in a business where the patron’s credit card is

taken out of sight while the transaction is being processed. The fraudster will swipe the card

through an electronic device known as skimming device, which records all information contained

on the magnetic strip. To obtain credit card details, offenders may employ sophisticated method

such as hacking into merchants’ databases or simply engineering the victims into giving their credit

card details. Cybercriminals install discreet devices, such as card skimmers or shimmers, on ATM

card readers to capture card data as users insert their cards.

It involves placing a device on an ATM's card reader to capture the magnetic stripe data from

inserted cards. Criminals use this stolen information to create counterfeit cards or conduct

fraudulent transactions.

PIN Theft: PIN theft methods include installing hidden cameras near ATMs to capture PIN entry

or using overlay devices on the ATM keypad to record keystrokes. The stolen PINs are then used

in conjunction with skimmed card data. Criminals employ hidden cameras or keypad overlays to

record PINs entered by unsuspecting ATM users.

Cash Trapping: Cash trapping involves installing a device inside or near the cash dispenser slot to

prevent cash from being dispensed properly. Criminals retrieve the trapped cash later.

Jackpotting: Jackpotting involves infecting an ATM with malicious software or using physical

tools to manipulate the ATM's hardware, enabling unauthorized access to the cash-dispensing

mechanism. This allows criminals to make the machine dispense all of its cash.

Network Attacks: Criminals may target the communication network infrastructure of ATMs to

intercept sensitive data, manipulate transactions, or gain unauthorized access to the ATM system.

Malware Attacks: Malware can be used to infect an ATM's operating system or network, allowing

criminals to gain control over the machine, extract sensitive data, or perform unauthorized

transactions. Sophisticated malware is designed to target ATMs, allowing criminals to manipulate

cash dispensing, gather sensitive data, or compromise network security.

Logical Attacks: Criminals exploit vulnerabilities in an ATM's software or operating system to

bypass security controls and gain unauthorized access to the system.

ATM cybercriminals are highly sophisticated, employing various tactics to evade detection and

maximize their profits. They may use anonymous cryptocurrencies to launder money, employ

social engineering techniques to gain access to ATM locations, or remotely control malware-
infected ATMs from a distance. These criminals also take advantage of vulnerabilities in outdated

ATM software and security protocols.

ATM cybercrime has severe consequences for both individuals and financial institutions. For

users, falling victim to card skimming or PIN theft can result in financial losses and potential

identity theft. Such incidents may lead to a loss of trust in banking systems and reluctance to use

ATMs. Financial institutions face reputational damage, financial losses, and potential legal

liabilities in the wake of ATM cyber-attacks. Moreover, cash-out attacks can disrupt banking

operations, causing significant financial and operational repercussions.

ATM cybercrime poses significant challenges for individuals and financial institutions alike.

Cybercriminals continuously evolve their tactics to exploit weaknesses in ATM systems, making

it imperative for the banking industry to stay ahead in the fight against such threats. Employing

stringent security measures, adopting emerging technologies, and raising awareness among

customers are critical steps to mitigate the risks associated with ATM cybercrime. By prioritizing

security and collaboration, the banking industry can ensure that ATMs remain a safe and reliable

channel for customers to access their financial services.

2.5.1 Mitigation Strategy

The rise of Automated Teller Machines (ATMs) has significantly improved banking accessibility

and convenience for customers. However, this widespread use of ATMs has also attracted cyber-

criminals, leading to an increase in ATM-related cybercrime. To protect customers and financial

institutions from these threats, robust mitigation strategies are essential. This elaborate write-up

delves into various mitigation strategies employed by the banking industry to safeguard ATM

transactions from cybercrime, emphasizing the importance of proactive security measures.

Regular Security Audits: Regular security audits are vital to identify and address vulnerabilities in

ATM systems and networks (Harsh & Shenoy, 2018). These audits involve comprehensive

assessments of hardware, software, and security protocols. By conducting routine audits, financial

institutions can identify potential weaknesses and apply necessary updates or patches promptly.

Strong Encryption Protocols: Implementing strong encryption protocols for data transmission

during ATM transactions is crucial (Lin, Kuo, & Kuo, 2018). Encryption ensures that sensitive

customer data, such as PINs and card information, remains secure and unreadable to unauthorized

individuals. By employing encryption, banks can thwart attempts to intercept or tamper with data

during transmission.

Real-time Monitoring Solutions: Real-time monitoring solutions offer a proactive approach to

detecting suspicious activities at ATMs (Lin et al., 2018). Advanced monitoring systems analyze

transaction patterns and ATM behavior to identify anomalies, such as multiple failed PIN attempts

or abnormal cash withdrawals. Rapid detection of such activities enables immediate response and

minimizes potential damage.

Device Tamper Detection: Deploying device tamper detection technology helps identify any

attempts to physically compromise ATM components (Harsh & Shenoy, 2018). Tamper detection

mechanisms trigger alerts when unauthorized modifications, such as card skimmers or camera

installations, are detected. This early warning system allows prompt action to prevent potential

data breaches.

Regular Software Updates: Regularly updating ATM software with the latest security patches and

fixes is a critical aspect of mitigating cyber threats (Lin et al., 2018). Software updates help close

known vulnerabilities and ensure that ATMs are equipped with the latest security features. This

practice reduces the risk of exploitation by cybercriminals.

Multi-factor Authentication: Implementing multi-factor authentication enhances ATM security by

requiring multiple forms of identity verification (Harsh & Shenoy, 2018). This could include a

combination of card information, PIN, biometric data, or one-time passwords. Multi-factor

authentication adds an extra layer of protection, making it more challenging for cybercriminals to

access accounts.

Customer Awareness and Education: Raising customer awareness about ATM security risks and

best practices is crucial for preventing cybercrime (Lin et al., 2018). Financial institutions should

conduct educational campaigns to inform customers about common ATM scams, how to identify

suspicious devices, and the importance of safeguarding PINs. Educated customers are more likely

to be vigilant and less susceptible to cyber threats.

Mitigating ATM cybercrime is an ongoing challenge for the banking industry. By adopting

proactive security measures, financial institutions can safeguard customer data and protect their

reputation. Regular security audits, strong encryption protocols, real-time monitoring solutions,

and device tamper detection are crucial aspects of an effective mitigation strategy. Additionally,

implementing multi-factor authentication, conducting regular software updates, and educating

customers about ATM security risks are essential components in ensuring a secure ATM

environment. By continually improving security measures and staying ahead of cybercriminal

tactics, the banking industry can maintain the trust of customers and uphold the integrity of ATM

transactions.

2.5.2 Securing Automated Teller Machine (ATM) using Fingerprint/Facial Recognition

A biometric system is a form of recognition that enables personal identity by validating the user's

adherence to a specific physiological or behavioral feature. For a number of reasons, this form of

identification is favored to more establish ones that call for passwords and PINs. A measurable
physiological and behavioral trait that may be recorded and then compared with another instance

at the moment of verification is referred to as a biometric. It is a system for automatically

identifying people based on their physiological or behavioral traits. An individual's distinctive

physical or behavioral characteristics are measured in order to recognize or verify their

identification. Popular behavioral biometrics include voice and signature, while common physical

biometrics include fingerprint, hand or palm geometry, retina, iris, and face.

The proposed system works with biometric fingerprint and Facial recognition only, the customer

uses fingerprint/facial recognition at ATM and if matched correctly, then all banks of the customer

have an account with appears, the customer will select the bank to transaction with, then select the

account type with that bank, then chose to withdraw, check account balance and so on. Customer

will now choose or select the bank he wants to withdraw money from and specify if the account is

Current or Savings, this is a means of securing ATM transactions using biometric fingerprint/facial

recognition.

Conventional methods of identification based on possession of ID cards or exclusive knowledge

like a social security number or a password are not all together reliable. ID cards can be lost, forged

or misplaced; passwords can be forgotten or compromised, but ones’ biometric is undeniably

connected to its owner. It cannot be borrowed, stolen or easily forged.

Despite warning, many people continue to choose easily guessed PIN’s and passwords - birthdays,

phone numbers and social security numbers. Recent cases of identity theft have heightened the

need for methods to prove that someone is truly who he/she claims to be. Biometric authentication

technology using fingerprint identifiers may solve this problem since a person’s biometric data is

undeniably connected to its owner, is nontransferable and unique for every individual. Biometrics

is not only a fascinating pattern recognition research problem but, if carefully used, could also be
an enabling technology with the potential to make our society safer, reduce fraud and lead to user

convenience by broadly providing the following three functionalities (a) positive identification (b)

large scale identification and (c) screening.

2.6 AUTHENTICATION

Authentication is a process used to verify the identity of a user or system attempting to gain access

to a particular resource, service, or data. It is a fundamental aspect of computer security and is

employed to ensure that only authorized individuals or entities can access sensitive information or

perform certain actions.

In a security system, the authentication process checks the information provided by the user with

the database. If the information matches the database information, the user is granted access to the

security system. There are three types of authentication mechanism used. Validation is the initial

phase in access control, and there are three regular variables utilized for verification – something

you know, something you have, and something you are. Something you know mostly requires

individual to get access to the system by typing the username and password. Something you have

is where the user uses smart card for authentications. Something you are is where the user using

biometrics methods to get access control. All types of authentication mechanisms allow user to get

access to the system however they all work differently. There are many authentication methods

developed for users to gain access to the system. In password authentication, there are two forms

– weak password and strong password authentications. Access control allows the user to log in

into the trusted sites of an organization. Every access control has four processes – identification,

authentication, authorization, and accountability. The identification is when the user enters the ID

and ID is checked with the security system. Some security system generates random IDs to protect

against the attackers. There are three authentication processes. Authorization is checking and
matching the authenticated entity of information with access level. The authorization process is

handled three ways – authorization is performed for authenticated user, authorization is performed

for members of the group, authorization is performed across the multiple systems, and

accountability is a process keeping system logs. Systems logs keep track of all successful and

unsuccessful logins.

Generally, authentication systems can be categorized into three categories: Single (SFA), Two

(2FA), and Multifactor authentication (MFA). The types of identification factors can also be

categorized into three categories Knowledge, Ownership, and Biometric-based factors.

Knowledge-based factors are something that the user knows to prove their identity, for example a

password or a pin-code. Ownership-based factors are something that the user owns to prove their

identity, for example a pass-card or a key. Biometric-based factors are something that the user is

to prove their identity, for example some features of the person like a fingerprint or the eyes iris.

Authentication plays a pivotal role in maintaining cybersecurity by safeguarding against various

threats and vulnerabilities. Cybercriminals continuously exploit weaknesses in authentication

systems to gain unauthorized access, leading to data breaches, financial losses, and reputational

damage. Robust authentication mechanisms, like Multifactor Authentication help counteract these

threats and establish a more secure digital environment. Authentication is the cornerstone of

modern cybersecurity, ensuring that only authorized entities gain access to valuable resources.

2.6.1 Multifactor Authentication

Multi-factor authentication is where a user must use different methods concurrently to verify that

they are who they say they are before being granted access to an information system. MFA

solutions could consist of a combination of a one-time-password (OTP), mobile device push to

accept or reject the login, or a hardware or software token with a rolling passcode. Authentication
factors are broken down into three groups: something you know (a password), something you have

(a token), or something you are (biometric data) (Yeboah-Boateng & Kwabena-Adade, 2020).

According to A. Jain, L. Hong and S. Pankanti (2021), multifactor authentication (MFA) is a

security mechanism that adds an extra layer of protection to user authentication processes. It

combines two or more different factors, or pieces of evidence, to verify the identity of a user before

granting access to a system, application, or service. These factors typically fall into one of the

following three categories:

Knowledge Factors: These factors involve something the user knows, such as a password, PIN, or

answers to security questions.

Possession Factors: These factors involve something the user possesses, such as a physical token,

smart card, or a mobile device.

Inherence Factors: These factors involve something inherent to the user, such as biometric traits

(fingerprint, iris, face recognition) or behavioral characteristics (typing patterns, voice

recognition).

By combining multiple factors from different categories, multifactor authentication significantly

enhances the security of user accounts. Even if one factor is compromised, an attacker would still

need to bypass the other factors to gain unauthorized access.

2.6.2 Types of Multifactor Authentication

Multifactor authentication (MFA) can utilize various combinations of factors to verify the identity

of a user. Here are some common types of multifactor authentication:

Two-factor authentication (2FA): This is the most widely used form of MFA and typically

combines two different factors. It often involves the use of a password (knowledge factor) along
with a second factor, such as a one-time password (OTP) sent via SMS or generated by an

authenticator app (possession factor).

Three-factor authentication (3FA): As the name suggests, this type of MFA incorporates three

different factors for authentication. It could combine a password (knowledge factor), a physical

token or smart card (possession factor), and a biometric characteristic like a fingerprint or facial

recognition (inherence factor).

Biometric authentication: This form of MFA relies on unique biological or behavioral

characteristics of an individual for verification. Biometric factors can include fingerprint scans,

iris or retinal scans, facial recognition, voice recognition, or even behavioral biometrics like typing

patterns or mouse movements.

Hardware tokens: Hardware tokens are physical devices that generate one-time passwords or

cryptographic keys. These tokens are often small keychain devices or smart cards that the user

possesses. The user provides the token-generated code along with their password for

authentication.

Software tokens: Software tokens are typically mobile applications that generate one-time

passwords or QR codes. These apps can be installed on a user's smartphone or computer and

generate codes that change periodically. The user enters the code displayed on the app along with

their password for authentication.

SMS-based authentication: In this method, a one-time password (OTP) is sent to the user's mobile

device via SMS. The user enters the OTP along with their password to complete the authentication

process. However, it's worth noting that SMS-based authentication is considered less secure due

to vulnerabilities like SIM swapping attacks.

Push notifications: With push notification-based authentication, a user receives a notification on

their registered mobile device when attempting to log in. The user can approve or deny the

authentication request directly from the notification.

2.6.3 Benefits of Multifactor Authentication

As the use of Automated Teller Machines (ATMs) continues to grow, so does the concern over

ATM-related cybercrime. To enhance the security of financial transactions and protect customers

from unauthorized access, many financial institutions are implementing multifactor authentication

(MFA) in their ATM systems. This write-up explores the advantages of implementing multifactor

authentication in ATMs, highlighting how this robust security measure can bolster customer

protection and safeguard sensitive financial data.

Vaclav Matyas and Zdenek Riha (2021) offers several benefits that significantly enhance security

compared to single-factor authentication methods. Here are some key benefits of implementing

MFA:

Increased Security: MFA adds an extra layer of protection by requiring multiple factors for

authentication. Even if one factor, such as a password, is compromised, an attacker would still

need to bypass the other factors to gain unauthorized access. This significantly reduces the risk of

unauthorized account access and data breaches. One of the primary benefits of implementing

multifactor authentication in ATMs is enhanced account security (Ullah et al., 2019). With MFA,

customers are required to provide two or more forms of identification, such as a physical ATM

card and a unique personal identification number (PIN). This additional layer of verification

significantly reduces the risk of unauthorized access to accounts, protecting customers from

potential card skimming or stolen PIN attacks.

Protection against Password-related Attacks: Password-related attacks, such as brute-force attacks,

credential stuffing, and phishing, are common methods used by attackers to gain unauthorized

access. MFA mitigates these risks by requiring additional factors, making it much harder for

attackers to succeed even if they have obtained a user's password.

Stronger Authentication: By combining different types of factors, MFA provides stronger

authentication compared to relying solely on passwords. Factors such as biometrics (fingerprint,

facial recognition) and possession (smart cards, mobile devices) offer more reliable and unique

identification, making it harder for attackers to impersonate legitimate users. MFA in ATMs plays

a crucial role in preventing identity theft (Yoshikawa, 2018). With the growing prevalence of data

breaches and identity-related crimes, it is essential to implement security measures that ensure the

true identity of ATM users. Incorporating biometric authentication, such as fingerprint or iris

scanning, adds an extra layer of protection against identity fraud and ensures that only authorized

account holders can access their funds.

Mitigation of Credential Theft: MFA helps mitigate the impact of credential theft. Even if an

attacker manages to steal a user's password, they would still require the additional factor (e.g.,

physical token, biometric data) to complete the authentication process. This makes it significantly

more challenging for attackers to misuse stolen credentials.

Compliance with Security Standards: Many regulatory standards and frameworks, such as the

Payment Card Industry Data Security Standard (PCI DSS) and the General Data Protection

Regulation (GDPR), require organizations to implement strong authentication measures. MFA is

often considered an essential component of meeting these compliance requirements. The

implementation of multifactor authentication in ATMs helps financial institutions comply with

regulatory requirements (Yoshikawa, 2018). Many governments and regulatory bodies mandate
enhanced security measures, especially for financial transactions. By deploying MFA, banks

ensure they meet these standards, reducing the risk of penalties and maintaining a strong reputation

for security and compliance.

User-Friendly Experience: While MFA adds an extra step to the authentication process, modern

implementations have become more user-friendly. Methods like push notifications and

authenticator apps provide convenient and seamless user experiences, reducing the inconvenience

often associated with security measures. Contrary to assumptions about added complexity,

multifactor authentication can be designed to offer flexibility and convenience to customers (Ullah

et al., 2019). Financial institutions can provide a range of authentication methods, including

fingerprint recognition, one-time passwords sent via SMS, or mobile apps. Customers can choose

authentication mechanisms that align with their preferences and technological capabilities,

enhancing their overall experience without compromising security.

Cost-Effectiveness: Despite the initial setup and integration costs, the implementation of MFA can

be cost-effective in the long run. The potential financial losses from security breaches, data theft,

and compromised accounts can be significantly higher than the investment required to implement

MFA.

Reduced Risk of Fraud: Multifactor authentication plays a pivotal role in mitigating ATM-related

fraud (Yoshikawa, 2018). Traditional single-factor authentication, relying solely on a card and

PIN, can be vulnerable to attacks like card skimming and shoulder surfing. By implementing MFA,

financial institutions elevate the level of protection against these threats. Cybercriminals are less

likely to succeed in fraudulent transactions as they must bypass multiple layers of authentication.

In summary, multifactor authentication provides a robust security solution that protects against

password-related attacks, enhances authentication strength, mitigates the impact of credential theft,
and helps organizations meet compliance requirements. The increased security and protection

outweigh the potential inconveniences, making MFA an essential component of a comprehensive

security strategy.

In a world where cyber threats are constantly evolving, implementing multifactor authentication

in ATMs is a proactive and necessary step for financial institutions. The advantages of MFA, such

as enhanced account security, mitigation of ATM-related fraud, and prevention of identity theft,

demonstrate its effectiveness in safeguarding sensitive financial data and protecting customers.

Additionally, the flexibility and convenience offered by MFA ensure that customers can engage

with ATMs in a secure and user-friendly manner. By embracing multifactor authentication,

financial institutions establish a robust defense against cybercriminals and instill confidence in

customers that their accounts and transactions are safe and secure.

2.6.4 Multifactor Authentication and its Impact on Curbing Cybercrime

Multifactor authentication (MFA) plays a significant role in curbing cybercrime by strengthening

security measures and reducing the risk of unauthorized access. Here's how MFA impacts the fight

against cybercrime:

Mitigating Credential Theft: Cybercriminals often rely on stolen credentials to gain unauthorized

access to user accounts and sensitive information. MFA adds an additional layer of protection,

making it much harder for attackers to misuse stolen passwords. Even if passwords are

compromised, the attacker would still need access to the additional authentication factor, such as

a physical token or biometric data.

Protecting Against Phishing Attacks: Phishing attacks attempt to trick users into revealing their

passwords or other sensitive information. By implementing MFA, even if a user falls victim to a

phishing attack and unknowingly provides their password, the attacker would still need the
additional authentication factor to complete the authentication process. This significantly reduces

the effectiveness of phishing attempts.

Preventing Brute-Force Attacks: Brute-force attacks involve systematically guessing passwords

until the correct one is found. MFA adds an extra layer of defense against these attacks. Even if an

attacker manages to guess a correct password, they would still need to bypass the additional

authentication factor, which significantly increases the time and effort required to compromise an

account.

Combating Account Takeovers: Account takeovers occur when cybercriminals gain unauthorized

access to user accounts by using stolen credentials or exploiting vulnerabilities. MFA provides an

additional barrier, making it much harder for attackers to successfully take over accounts. Even if

attackers obtain a user's password, they would still need to bypass the additional authentication

factor to gain full access.

Reducing the Impact of Data Breaches: MFA helps mitigate the impact of data breaches by adding

an extra layer of protection. In cases where usernames and passwords are compromised in a breach,

the additional authentication factor required for MFA significantly reduces the risk of unauthorized

access to user accounts and sensitive data.

Strengthening Remote Access Security: With the increasing number of remote workers and the

adoption of cloud-based services, securing remote access has become crucial. MFA provides an

effective security measure for remote access, ensuring that only authorized individuals with the

proper credentials and additional factors can access sensitive resources remotely.

Enhancing Compliance with Security Standards: Many regulatory frameworks and industry

standards require organizations to implement strong authentication measures to protect sensitive

data. MFA is often considered a crucial component for meeting these compliance requirements

and safeguarding against cyber threats.

By incorporating MFA into authentication processes, organizations can significantly improve their

overall security posture, reduce the likelihood of successful cyber-attacks, and protect user

accounts and sensitive information from unauthorized access.

2.6.5 Multifactor Authentication and its Basic Principles

Multifactor authentication (MFA) operates based on several fundamental principles to ensure

secure and reliable user authentication. Aleksandr Ometov et al (2019) described the following

basic principles of Multifactor Authentication:

Multiple Factors: MFA requires the use of two or more authentication factors from different

categories. These factors typically fall into three categories: knowledge factors (something the user

knows, like a password), possession factors (something the user possesses, like a physical token

or mobile device), and inherence factors (something inherent to the user, like biometrics). By

combining factors from different categories, MFA provides an additional layer of security.

Independent Verification: Each authentication factor used in MFA should be independently

verified. This means that the failure or compromise of one factor should not compromise the

security of the other factors. Each factor should be evaluated separately and should provide its own

evidence of the user's identity.

Non-Duplicable Factors: The factors used in MFA should be difficult or impossible to duplicate

or replicate. For example, passwords should be unique and securely stored, physical tokens should

be tamper-resistant, and biometric factors should be based on unique individual characteristics that

are difficult to forge.

Separation of Factors: The authentication factors used in MFA should be distinct and separate from

one another. This means that each factor should require a different method or means of verification.

For example, using a password and a fingerprint for MFA ensures that two separate pieces of

evidence are needed for authentication.

Ease of Use: While MFA adds an extra step to the authentication process, it is important to

maintain a balance between security and usability. The chosen authentication factors should be

convenient and easy for users to use without causing excessive burden or frustration. User-friendly

MFA methods, such as push notifications or authenticator apps, help promote adoption and

compliance.

Flexibility and Scalability: MFA should be adaptable to different systems, platforms, and user

requirements. It should be flexible enough to accommodate various authentication factors based

on the specific needs of the organization or user. Additionally, MFA should be scalable to support

a growing number of users and evolving technology.

Continuous Improvement: MFA should be continuously evaluated and improved to address

emerging security threats and vulnerabilities. Regular assessments, updates, and patches should be

implemented to ensure the effectiveness and robustness of the MFA system.

By adhering to these principles, organizations can implement MFA in a manner that strengthens

security, provides a reliable authentication process, and protects user accounts and sensitive

information from unauthorized access.

2.6.6 Challenges in Implementing Multifactor Authentication for Automated Teller

Machine (ATMs)

Implementing multifactor authentication (MFA) for Automated Teller Machines (ATMs) presents

some unique challenges. Christof Paar and Jan Pelzi (2022) listed some few challenges that

organizations might face when deploying MFA for ATMs:

Hardware Limitations: ATMs often have limited hardware capabilities, which can pose challenges

for implementing certain types of authentication factors. For example, integrating biometric

authentication, such as fingerprint scanners or facial recognition, into existing ATMs may require

significant hardware modifications or upgrades. Such modifications may be costly or technically

complex.

User Experience: ATMs are designed for quick and convenient transactions, and adding additional

authentication steps could potentially impact the user experience. Balancing security with usability

is crucial to ensure that MFA implementation does not lead to significant delays or frustration for

ATM users. Designing intuitive and user-friendly MFA methods that seamlessly integrate with

ATM workflows is essential.

Cost and Maintenance: Introducing MFA to ATMs may involve additional costs for hardware

upgrades, software integration, and ongoing maintenance. Organizations need to assess the

financial implications of implementing MFA and consider whether the benefits outweigh the

associated expenses. Additionally, regular maintenance and software updates are necessary to keep

the MFA system secure and up to date.

Compatibility and Standardization: ATMs are deployed by various banks and financial

institutions, and ensuring compatibility and standardization across different systems can be a
challenge. Implementing MFA for ATMs requires collaboration among ATM manufacturers,

software developers, and financial institutions to establish common standards and interoperability.

Regulatory Compliance: Financial institutions must comply with industry regulations and

standards regarding security and authentication. Introducing MFA for ATMs may require

organizations to align their implementations with specific regulatory requirements, such as PCI

DSS (Payment Card Industry Data Security Standard). Ensuring that the chosen MFA solution

meets regulatory guidelines is crucial for compliance.

Integration with Existing Infrastructure: MFA implementation for ATMs may involve integrating

with existing banking systems, authentication servers, and backend processes. Compatibility and

integration challenges may arise when connecting the MFA solution with the ATM network,

transaction processing systems, and user databases. Ensuring smooth integration and compatibility

is essential for a successful MFA deployment.

Education and Awareness: Introducing MFA for ATMs requires educating and familiarizing users

with the new authentication process. Users need to understand the purpose and benefits of MFA,

as well as how to use the different authentication factors effectively. Organizations should invest

in user education and awareness campaigns to ensure a smooth transition and user acceptance.

Overcoming these challenges requires careful planning, collaboration between stakeholders, and

a thorough assessment of technical, financial, and user experience considerations. By addressing

these challenges effectively, organizations can enhance the security of ATMs and protect customer

transactions and data.

2.6.7 Strategies for Implementing Multifactor Authentication in Automated Teller

Machine (ATMs)

Implementing multifactor authentication (MFA) in automated teller machines (ATMs) can

significantly enhance security and protect user accounts from unauthorized access. Here are some

strategies for implementing MFA in ATMs:

Two-Factor Authentication (2FA): Implement a two-factor authentication system that combines

something the user knows (e.g., a PIN) with something the user possesses (e.g., a physical token

or a mobile device).

Biometric Authentication: Incorporate biometric authentication methods such as fingerprint

scanning, iris recognition, or facial recognition to verify the user's identity. Biometrics provide a

unique and convenient authentication factor.

One-Time Passwords (OTP): Use OTPs to generate a temporary code that is sent to the user's

registered mobile device. The user must enter the OTP in addition to their PIN to complete the

authentication process.

Out-of-Band Verification: Utilize out-of-band verification methods, such as sending verification

codes via SMS or email, to a separate device or email address. This adds an extra layer of security

by requiring the user to verify their identity on a different channel.

Smart Cards or Token-Based Authentication: Integrate smart cards or token-based authentication

systems where the user inserts a physical card or token into the ATM, which contains encrypted

authentication information. This method ensures the possession factor.

Mobile Authentication: Leverage mobile devices as a second-factor authentication method. Users

can receive push notifications on their smartphones, requiring them to confirm the transaction or

provide additional verification through the ATM's mobile app.

Transaction Confirmation: Implement transaction confirmation mechanisms where users receive

a notification or alert for each ATM transaction. Users must approve or deny the transaction

through a designated channel, such as a mobile app or SMS.

Risk-Based Authentication: Utilize risk-based authentication algorithms to assess the risk level of

each transaction. High-risk transactions can trigger additional authentication steps, such as

requiring a second factor or requesting biometric verification.

Periodic Password Changes: Implement policies that require users to change their ATM PIN or

authentication credentials periodically. This helps prevent the misuse of compromised credentials.

User Education: Conduct awareness campaigns and provide clear instructions to ATM users about

the importance of MFA and how to use the authentication methods securely. Educating users helps

them understand the value of additional security measures.

It's important to note that the implementation of MFA in ATMs should consider usability,

accessibility, and user acceptance. The chosen authentication methods should strike a balance

between security and convenience to ensure a positive user experience while maintaining robust

security measures.

Unlike the above review works, the aim of this project is to build a multifactor authentication as

one of the measures to curb ATM cybercrime.