Risk Assessment For Atm Using Algebra of Logics
Enhancing Security and Risk Assessment in Automated Teller Machines
by Ruchi Tyagi*,
- Published in International Journal of Information Technology and Management, E-ISSN: 2249-4510
Volume 2, Issue No. 1, Feb 2012, Pages 0 - 0 (0)
Published by: Ignited Minds Journals
ABSTRACT
An automatedteller machine (ATM) is a computerized tele-communications device that providesthe customers of a financial institution with access to financial transactionsin a public space without the need for a human clerk or bank teller. On mostmodern ATMs, the customer is identified by inserting a plastic ATM card with amagnetic stripe or a plastic smart card with a chip that contains a unique cardnumber and some security information, such as an expiration date or CVC (CVV).Security is provided by the customer entering a personal identification number(PIN). They are sometimes referred to as “ATM machines”, an example of RAS syndrome.Using an ATM, customers can access their bank accounts in order to make cashwithdrawals and check their account balances.
KEYWORD
risk assessment, ATM, algebra of logics, automated teller machine, financial institution, tele-communications device, plastic ATM card, magnetic stripe, plastic smart card, personal identification number
INTRODUCTION
An automated teller machine (ATM) is a computerized tele-communications device that provides the customers of a financial institution with access to financial transactions in a public space without the need for a human clerk or bank teller. On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip that contains a unique card number and some security information, such as an expiration date or CVC (CVV). Security is provided by the customer entering a personal identification number (PIN). They are sometimes referred to as “ATM machines”, an example of RAS syndrome. Fig-1(a) shows an ATM mouth.
Fig-1(a): Shows ATM mouth
Using an ATM, customers can access their bank accounts in order to make cash withdrawals (or credit card cash advances) and check their account balances. British Actor Reg Varney: Use the world’s first ATM in 1967 located at a branch of Barclays Bank, Enfield. The system was developed by De La Rue. The first mechanical cash dispenser was developed and built by Luther George Simjian, installed in 1939 in New York city by the Bank of New York, but removed after 6 months due to the lack of customer acceptance. Thereafter, the history of ATMs paused for over 25 years, until De La Rue developed the first electronic ATM, which was installed first in Enfield town in North London United Kingdome on 27th June 1967 by Barclays Bank. This instance of invention is credited to John Shepherd Barron although various other engineers were awarded patents for related technologies at the time. Shepherd Barron was awarded an OBE in the 2005 New York’s Honors list. The first person to use the machine was the British variety artist and actor Reg Vauney. The first ATMs accepted only a single use token or voucher which was retained by the machine. These worked on various principles including radiation and low coercivity magnetism that was wiped by the card reader to make fraud more difficult. The machine dispensed pre-packaged envelopes containing ten Ponds sterling. The idea of a PIN stored on the card was developed by the British engineer James Good Fellow in 1965. Fig-1(b) represents an ATM station with two parallel machines
2
parallel. The capability of the system is affected by all the units of the system. Block diagram of considered system. The author has been used two standby redundant bank computers to improve system’s overall performance. This standby unit can be online through an imperfect switching device. Using algebra of logics the author has done mathematical formulation of the system. This mathematical model has been solved by employing Boolean function technique. Reliability of considered system has been computed. Reliability functions have been obtained in two different cases, when failures follow weibull and exponential time distributions. An important reliability parameter, viz. mean time to failure of considered system has also been computed to improve practical utility of the model. Graphical illustration followed by a numerical computation has been appended at the end to highlight important results of the study.
Fig-1(b): Represents an ATM station with two parallel machines
FORMULATION OF MATHEMATICAL MODAL
Conditions of capability for successful operation of considered system, in terms of logical matrix, can be expressed as given below:
,
76431 5431 76421 5421 721
xxxxx xxxx xxxxx xxxx xxxF
…(1)
SOLUTION OF THE MODEL
AxxxxxF ,41721 …(2) where,
763
53
762
52
xxx xx xxx xx A
…(3)
Substituting the following into equation (3), 521xxP 7622 xxxP 533xxP 7634xxxP We obtain
4 3 2 1
P P P P A
Using orthogonalization algorithm, we get
4321 321
21 1
PPPP PPP
PP P A
…(4)
Now using algebra of logics, we have 521 xxP
52
21
xx xP
76252
221
xxxxx
xPP
7652 xxxx …(5)
Ruchi Tyagi
532321xxxPPP …(6) and 765224321 xxxxxPPPP …(7) Using equations (5) to (7), equation (4) becomes
76532 532 7652
52
xxxxx xxx xxxx xx A
…(8)
Using equation (8) into equation (2), we obtain
7654321 54321 765421 5421 721
,
xxxxxxx xxxxx xxxxxx xxxx xxxF
…(9)
Since R.H.S. of equation (9) is disjunction of pair-wise disjoint conjunctions, therefore, reliability of considered A.T.M. system is given by: 1 ---,Pr721xxxFRS
7635253276255241RRRSSRRSRRRSRRRR
where -7.---1,2i 1iiRS Thus,
76532763537625241RRRRRRRRRRRRRRRRRRS
765376325327652RRRRRRRRRRRRRRR
…(10)
RESULTS AND DISCUSSION
Analysis of fig-1(a) reveals that reliability function RSW(t) decreases catastrophically in the beginning but thereafter it decreases constantly. The value of RSE(t) remains better as compared of RSW(t). A critical examination yields that the value of MTTF(E) decreases rapidly as we make increase in the values
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