FNB to curb ATM bombings

By Christelle du Toit for FNB
Johannesburg, 10 Jul 2007

First National Bank (FNB) plans to spend R66 million over three years to protect its ATMs, says ATM CEO Mike Arnold.

A major focus of the campaign is to cut down on ATM bombings, which Arnold says is "a very real threat to the [banking] industry", and is leading to economic losses at some financial institutions.

Recent crime statistics indicate an ATM bombing now takes place every day in SA.

According to the South African Banking Risk Information Centre (Sabric), 190 ATM bombings have been recorded in the year-to-date, compared to only five in the whole of 2004. The organisation says most of the attacks take place in Gauteng, the North West and generally in "previously unbanked areas" in the early hours of the morning.

Arnold says ATM security in SA is "vulnerable" and, while ATM bombings are not generally successful in gaining access to cash, they are "incredibly disruptive to FNB's ATM business".

Under the bank's new "tough on crime stance", R22 million is to be invested per year for the next three years on real-time ATM surveillance, with 500 ATMs per year being linked to the project "to cover the bank's entire ATM site base".

Security Management Solutions will be the bank's service provider and will monitor video footage in real-time, not only for the use of explosives at ATMs, but also card skimming, armed robberies and card swapping. The R22 million per year will cover the installation, monthly rental and monitoring of the ATM surveillance systems.

FNB is also collaborating with the South African Police Service (SAPS) and handing over footage of suspected criminal acts in order to be followed up.

The bank plans to spend R150 million on setting up 750 new ATMs. In addition, it will upgrade its systems to the tune of R60 million, with MTN supplying GPRS, 3G and HSDPA platforms for the ATMs.

Successful prosecution

Arnold says FNB's new surveillance plan is one that has been "tried and tested" and "we [FNB] assure perpetrators [of ATM crime] that we do have the technology, backing and skills to not only identify them, but prosecute them successfully as well".

The new surveillance system has already been piloted at 138 FNB ATMs and the bank says it "managed to dramatically reduce ATM-related criminal cases" during the pilot period.

According to FNB statistics, the bank has registered 624 criminal cases with the SAPS, of which 148 cases have been "successfully completed". The bank has had 17 people convicted, with another 19 awaiting trial.

Sabric says while ATM bombings had been "a growing trend" for the first two months of the year, they are dissipating somewhat, "no doubt due to the good work done by the SAPS in affecting a number of arrests".

There are about 15 000 ATMs in SA.