Automated Teller Machine, commonly named as ATM is found in abundance everywhere in the world but ever wondered where it all started? Recently, the ATM celebrated its 50th birthday on June 27, 1967, which marks the day when the first ever ATM of the world was set up by Barclays at one of its branches in a suburb of London. Prior to the ATM usage, it was a common practice to make all the bank transactions through Cheque. Even nowadays, major transactions are considered safe through Cheque Payments or Demand Drafts and Pay Orders. Here are some interesting facts from the history of ATM.
The Invention And Working
John Shepherd-Barron is the name that is commonly referred to while talking about the inventors of ATM but some believe that other parties of engineers at banks were already working on the idea of a cash dispenser at the same time. However, the ATMs didn’t work the way they are working right now. The customer had to insert a cheque into the machine followed by a PIN, which had to match the cheque before cash was dispensed. This method couldn’t run longer due to security issues and eventually, a magnetic-stripe card replaced the Cheques.
Did You Know?
Bankograph was a similar kind of a machine invented prior to ATMs in 1960 by Luther George Simjian. Though it could not prevail long due to some reasons, it primarily focused on depositing cash and cheques.
In the past year, a major fraud came to the scene when a group of professional thieves in Japan used credit card data stolen from South Africa’s Standard Bank to withdraw $13 million from 14,000 ATMs in all of three hours.
An even bigger fraud was reported in Turkey when a guy named ‘Ercan Findikoglu‘ hacked into banks’ systems and removed the withdrawal limits at ATMs. This resulted in a withdrawal of $55 million in three attempts between February 2011 and February 2013.
Many other frauds were reported in poor countries like India where almost 3.2 million debit cards were found to have been compromised.