Street money machines here to stay

Press, 25 May 1984, Page 13

Street money machines here to stay

By

KEN COATES

In spite of a remote chance someone may again break security systems, banks are planning to install more street money machines. They are riding a wave of popularity. Police are still investigating the theft of $14,000 from Autobank machines in Christchurch but, through a good public response, are building up a picture of possible suspects who made repeated withdrawals from three machines throughout Sunday, May 13. Theoretically, the machines, operated by the B.N.Z. and A.N.Z., should not have paid out more than the limit of $2OO in any one day because of “fail-safe” security systems built into computerised control.

The B.N.Z. says a programming mistake in the Autobank system enabled the thief to withdraw $14,000.

Both bank and computer firm representatives are reluctant to reveal details of the security systems for obvious reasons, but the theft — the first of its kind on such a scale in the country — is of the type suggesting detailed knowledge of computers and how they operate.

The more successful the machines are. the more they will be a temptation to sophisticated thieves who dream of ways to get them to disgorge money in spite of computer barriers. Even so, the machines are here to stay. The B.N.Z. spokesman confirmed the Autobak machines’

popularity and says the installation of more is planned. One of the major money machines success stories is the experience of Trusteebank Canterbury which was early in the field. Last month, nine machines in Christchurch, one in Nelson, and another in Blenheim dispensed so much money that the bank will not disclose the total for “security reasons.” The figure is almost three times as much money as was withdrawn through Cashflow machines during April a year ago. Roy Young, the Trusteebank’s deputy administration manager, admits to initial scepticism over the sucess of the machines before the first four were installed in Christchurch 18 months ago. “The United Building Society led

with cash machines in this country, followed by trustee savings banks in Auckland, Waikato. Taranaki, and Southland,” he recalls.

“We expected Canterbury people to be rather conservative in their approach, but we found the machines suit the community, proving exceptionally successful. “Their convenience especially suits people whose salaries are paid directly into the bank, and work out of the city centre.”

The level of use of the Trusteebank’s machines is higher than in comparable centres in both Australia and the United States. It has led the bank to decide to install more, at a cost of about $70,000 each, and Mr Young would like to see another six in Canterbury this year.

Records showing 21,000 inquiries through the machines last month, 70,000 withdrawals, 3300 deposits, and 2100 transfers may be all very satisfying to bank officers, but they do not tell the whole story. All users will be familiar with the frustration of driving to a money machine only to find the dreaded “closed” sign up. Worse is to drive miles to another and find it dead as well. The machine can run out of money, particularly if it is a busy-week-end, perhaps involving a major sports fixture and a pop concert, in Christchurch.

The average use of the machine

at New Brighton on just an ordinary Saturday, for example, is at the rate of a’transaction every 1.63 minutes.

Several thousands of dollars are loaded into each machine and the casettes that contain the notes are monitored by the computer at the bank's headquarters. Roy Young says that all Trusteebank machines are re-stocked before each weekend, and every effort is made to ensure continuous service.

If you have the time, it could be worth waiting for the bank’s service in refilling an empty machine. An emergency telephone number is posted on each, and this connects with a security firm. Bank staff are rostered for emergency duty, and if a machine runs out of money, arrangements can be made with the security firm for replenishing it (Autobank machines are not refilled in this way). But this will not be done during the small hours, as the bank undertakes to provide its Cashflow services between 6 a.m. and 11 p.m. Money machines can break down for other reasons, including a jam caused by a warped or mutilated card, a jammed receipt, or sometimes. but not often, a jam in the money-dispensing mechanism. Can the Cashflow system be robbed?

Roy Young is loath to tempt fate by saying it is as safe as the bank’s

vaults, but he does say the system is tried and tested. He is confident that as far as humanly possible the built-in safeguards will prevent thefts. Initially, the bank had problems with cards lost or stolen where the unauthorised user had also gained knowledge of the personal identification or PIN number. In spite of advice to the contrary, some card-holders kept their PIN number in their wallet or purse, together with their card, or even wrote it on the card. “But this does not happen so often now, as people seem to have realised the security value of their personal number which not even the bank knows," says Mr Young. What chance is there of someone who finds a lost Cashflow card of

feeding it into a money machines, and by a fluke keying in the PIN number of the holder?

The odds on striking the right keys are probably billions to one; and, in any case, the tryer will be given only four chances. At the fifth attempt, the card will disappear into the machine with an instruction to consult the bank.

With the Trusteebank system, each machine is connected directly to, or is “on line” with the bank's computer which adjusts the customer’s account at the time the withdrawal is made.

“It’s just as if the customer was standing in front of a teller,” says Roy Young. “If someone from Christchurch used his card in Auckland, and wanted to withdraw funds, the money would not be paid out until the amount was debited through the Christchurch bank’s computer. As with other banks, cardholders are limited to a maximum withdrawal of $2OO a dav.

Roy Young emphasises the importance of notifying the bank immediately a car’d is lost. “Once this is done that card is placed in the ‘hot card’ file. No matter where it is fed into a machine — anywhere in New Zealand — it will be gobbled up by that machine." Some people who lose a card on a Friday are lax in notifying the bank. If their personal number and card fall into the wrong hands they stand to lose $4OO if they do not report the loss until the Monday.