Monday, May 5, 2014

Windows XP based ATMs could be hacker’s paradise

Windows XP based ATMs could be hacker’s paradise

A recent study shows that 90% of American banks ATMs still run Windows XP or even worse Windows CE. Microsoft has discontinued support of XP as of April 8, 2014. What could this mean for the banking and finance industry? The main concern across the board is security, as hackers could soon have an unmonitored forum, putting data and end users at risk.

Some major banks are cutting deals with Microsoft to extend life support for their Windows XP machines while they replace their fleet of ATMs, according to CNN, but replacing ATM operating systems is a major undertaking. There are over 200 thousand ATMs in the United States, according to Retail Banking Research in London. The labor required to upgrade software, or even replace the entire system inside an ATM, could cost anywhere between $1000 and $3500 apiece.

After April 8, bank customers might be less concerned to use nondescript ATM found in malls, bars and small convenience stores. These 190,000 independently run kiosks make up the other half of the nation’s ATMs, and nearly all of them run and even older, simpler operating system which Microsoft still supports.

As a consumer you will not know what the operating system behind the scenes is. Ask questions of your bank to see what their plans are for upgrading. I have read where Dibold is working with financial institutions on upgrading systems. My one take away from this is, we all knew XP was going away. Microsoft provided us 18 months to prepare. Why didn’t these banks begin the process. Was it money or man power? Whatever the reason, for the next few months you will see more issues centered around ATMs and it will truly be a hacker’s paradise.

Be safe.

                

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