Windows ATMs raise security concerns

Use of general-purpose platform expected to increase risks

A switch to Windows-based ATMs could still be worth the security headaches if the new features, savings and efficiencies offset the costs of securing them and cleaning up after outbreaks, Schneier said. But if ATM vendors and banks have miscalculated the costs of securing those systems, the decision to move to Windows could prove fateful, he said.

"The worry is that (Windows ATMs) actually have higher costs than they anticipated. What if, now, hackers target Windows ATM machines and steal money? Does that affect customers? I hope that they're thinking about this because there are real risks," he said.

At FleetBoston, the decision to move to Windows-based ATMs was driven by the company's two main ATM vendors, Diebold and NCR, which account for almost all of Fleet's 3,500 ATMs. Both are encouraging the use of Windows XP over Linux or Unix on newer ATMs and legacy hardware, according to Jim D'Aprile, manager of ATM functionality and payment product engineering at Fleet.

The desire for more consistency between ATM networks and the rest of Fleet's business applications was also an important factor, D'Aprile said.

"I don't want to put a plug in for Windows, but it is the operating system of choice for desktops and Web-enabled applications, so if you want compatibility with those systems, its a no-brainer," he said.

Fleet recently completed a pilot test of 100 Windows NT ATMs in New York City and Boston and is certifying Windows XP for deployment, D'Aprile said.

The new ATMs look similar to Fleet's other ATMs but will offer new features, like the ability to manage multiple transactions simultaneously on the ATM and the ability to access online bill payment features set up through the company's home banking service, called "Homelink," he said.

Despite the enthusiasm about new features, both ATM vendors and their customers say that security issues stemming from the use of Windows are a major concern. And while major ATM vendors are united in their choice of Windows as a replacement for OS/2, there is no consensus among them on how to address the security concerns accompanying that choice.

For example, Diebold and NCR, disagree on whether ATMs are safer using embedded versions of Windows XP (XPE) or "off-the-shelf" versions of the OS.

Diebold is shipping its new line of Opteva ATMs with Windows XPE, said Steve Grzymkowski, senior product marketing manager at Diebold. The embedded OS promises to give Diebold better efficiency on its ATMs by removing unnecessary drivers and files, he said.

NCR disagrees.

"We are not recommending the use of Windows XP embedded," said Evans. "When you've gone to an embedded operating system, you've got to account for weird stuff in the code, and that means you're going to get patches for your version several weeks behind the rest of the market."

NCR is shipping full versions of XP on its Personas series ATMs and has hundreds of the machines deployed in the field. The company's APTRA software is also designed to run on the off-the-shelf XP platform, Evans said.

"If you ever need a patch to clean up a virus or bug, we'll be first in line -- not waiting for Blaster protection," he said.