Financial institutions and ATM deployers are no strangers to large-scale operating system migrations. Within the past decade, organizations have had to migrate from OS/2 to Windows CE/XP, and then on to Windows 7. Now, in a few months’ time, on Jan. 14, 2020, Microsoft will no longer provide regular technical support, security upgrades, or patches for devices running Windows 7 if they are not on extended support. Needless to say, this ATM software update can leave your fleet vulnerable to cyberattacks, as well as fees associated with PCI noncompliance.
Financial institutions that use cash recyclers throughout their operations already know the impact that they can have on their productivity, customer experience, cash management, and operational efficiency. And in a constantly changing market with a fickle customer base, anything a bank can do to set itself apart and drive growth is worth taking advantage of.
Despite what you may see on the big screen with a healthy dose of Hollywood magic, the days of physical attacks on ATMs resulting in big paydays for criminals are mostly in the past. In fact, according to a report by Europol and the European Crime Prevention Network, only one in three physical attacks against ATMs are successful.
As any ATM fleet manager can attest, there is a direct threat to not only your customer’s experience, but also your bottom line anytime one of your units is down. Compound this risk with a diverse fleet of equipment running a range of software within units that are also geographically dispersed, and it can be difficult to make sure your business is maximizing its potential.
Interested in learning more about how a cash recycler can benefit your cash management practices? Take a look at our infographic to explore the advantages of introducing a recycler to your business or financial institution.
In a time of “zero day” attacks, advanced network penetration, and ransomware, financial institutions are spending significant portions of their budgets on security, and for good reason. Of course, the concept of defense in depth is nothing new in the security and physical security field, especially in the financial services industry, but as organizations are preparing themselves for advanced threats, criminals have begun to turn again toward more basic attacks on ATMs.
A 2019 survey of National Retail Federation (NRF) members revealed that the industry is taking an estimated $50.6 billion hit due to shrinkage alone. For the average business, that equates to about 1.38 percent of your revenue needlessly lost. However, these numbers do not fully capture all of the other side effects and consequences that shrinkage could have on your business, including on its overall operational health, its employee morale, and even the experiences and prices it presents to its customers.
When an ATM fails, it can cost more than just a hit to the bottom line for your business. Throw in unhappy customers, lengthy downtimes, and costly repairs, and the end result of a broken unit can have a ripple effect throughout your operations.