Electronic Funds Transfer Association Issues Statement of Best Practices for ATM Security; Landmark Document Provides Guidance on Maintaining the Integrity of the Nation's ATM Systems.

Business Editors/High-Tech Writers

HERNDON, Va.--(BUSINESS WIRE)--June 13, 2003

The Electronic Funds Transfer Association today released its final Recommendations on Best Practices report aimed at improving overall security of ATM services.

The report is divided into two sets of recommendations: those to ATM manufacturers for improving the security of personal-identifications numbers, or PINs, within ATMs, and those to banks and ATM acquiring organizations regarding the entities that handle ATM transactions.

Among the report's recommendations:

-- ATM manufacturers should standardize their adherence to

existing international specifications for encryption and key

management

-- Manufacturers should identify older machines and models that

are capable of being upgraded to new security standards

advocated by regional and national ATM networks, as well as an

upgrade path for these machines

-- Banks along with companies that acquire ATM transactions for

processing and should conduct rigorous due diligence on any

third-party ATM service providers they engage or sponsor into

ATM networks

-- Banks that sponsor ATM service providers should monitor the

operations of those entities and perform random checks or

audits to ensure compliance with established rules and

standards

The Recommendations on Best Practices report was drafted by the EFTA-sponsored ATM Integrity Task Force, a broad coalition of organizations consisting of ATM manufacturers, the ATM Industry Association, banks, national and regional ATM networks, ATM service providers, and the U.S. Secret Service.

"EFTA is a unique inter-industry forum ideally positioned to facilitate the consensus reflected in this report," said EFTA Executive Director H. Kurt Helwig in releasing the document. "This report will provide a guide to ensuring the continued confidence of American consumers in ATM services and systems."

Many companies involved in ATM commerce have employed the report's recommendations as standard practice for some time, according to Helwig.

The recommendations focus narrowly on manufacturers and companies that acquire ATM transactions, noted Helwig, as a result of prioritizing on weaknesses uncovered in several highly publicized ATM crimes.

"These aren't the only entities impacted by ATM security issues," he said, leaving the door open for further recommendations by the Task Force.

For information on obtaining a complete copy of the Recommendations on Best Practices, visit the EFTA web site at www.efta.org.

About the Electronic Funds Transfer Association

The Electronic Funds Transfer Association (www.efta.org) is the nation's leading trade association dedicated to the advancement of electronic payment systems and commerce. Working often with Congress and a variety of federal agencies it provides critical intervention services on issues of regulatory or legislative importance to its members. Its members include shared ATM networks, financial institutions, manufacturers, payment processors, and technology-management companies.