ATMs are still attacked almost daily, causing significant damage. Banks are implementing extensive and drastic measures, which in turn leads criminals to employ increasingly severe methods, resulting in an arms race between banks and ATM bombers. This article explains how this arms race can be broken by eliminating the expectation of loot.
Money holds a strong appeal for criminals. It always has, and as long as money circulates, it always will. In the mid-1960s, major bank robberies first occurred in the Netherlands. At that time, banks were not secured at all; one could simply walk in. There were no bars, no bulletproof glass, and no alarm systems. Wages were paid in cash on Fridays. It was not until the 1970s that serious security measures were introduced: armored glass, alarm systems, and direct police alert buttons.
Nevertheless, this did not deter criminals. In 1990, there were as many as 400 bank robberies. From that point, banks decided to alter their strategy. Bank employees no longer had access to large sums of money; they could only dispense limited amounts at the counter. Time delays were also implemented for vaults. Subsequently, the number of bank robberies rapidly declined. Currently, bank branches hold hardly any cash; ATMs have taken over this function.
The history above teaches us that the cat-and-mouse game with criminals is only broken when there is no longer an expectation of loot. This can be achieved by removing the money (as in bank branches) or by irreversibly mutilating money during a robbery, rendering it worthless to a criminal. The latter is accomplished with so-called ‘exploding cases,’ a Mactwin development from the 1980s. The cash-in-transit sector massively adopted these cases (MactwinBoxes), and the number of robberies also drastically decreased in this area.
Heavy attacks on ATMs
Currently, ATMs are a major target for criminals. While attacks initially involved gas – a scenario first employed about 10 years ago – criminals now also use solid explosives. These attacks are carried out with such force that not only is the ATM destroyed, but the building is also severely damaged. The dangers to nearby residents are considerable. It is therefore logical that banks are urgently seeking a solution that genuinely deters criminals.
Irreversible cash degradation is the only effective solution
Mactwin believes that eliminating the expectation of loot through irreversible value mutilation of money is the only effective solution to stop this criminal scenario. Ink has been the most well-known mutilation method to date. However, we observe that ink is insufficiently effective, as ink-stained money is still spent and accepted.
“We are convinced that a banknote is only worthless if its physical properties are irreversibly damaged, such that the mutilated banknotes are not accepted as legal tender anywhere,” says Robin Bijland, Chief Technology Officer at Mactwin. “In close collaboration with various industry stakeholders, we have developed an entirely new mutilation method for cash cassettes in ATMs: glue. In the event of an ATM attack, our product, GlueFusion, glues the banknotes in a cash cassette together in the shortest possible time. This creates a ‘brick’ of banknotes. If someone tries to separate them, they tear, leaving only shreds. The specially developed glue cannot be dissolved or removed by other means, making the mutilation irreversible. A brick or shreds of banknotes are never accepted—by anyone, or by payment terminals. By applying GlueFusion, there is no longer any point in attacking ATMs.”
The future
By using irreversible cash degradation, the number of attacks on ATMs will be drastically reduced and the criminal will look for new targets. It is expected that the focus of criminal activity will further shift towards cybercrime. Consequently, organizations will need to invest significantly in enhancing their digital resilience in the coming years.