WEBVTT - TechStuff withdraws from the ATM 0:00:00.280 --> 0:00:02.840 Brought to you by the reinvented two thousand twelve camera. 0:00:03.160 --> 0:00:08.920 It's ready. Are you get in touch with technology? With 0:00:09.000 --> 0:00:17.520 tech Stuff from how stuff looks dot com. Hello everyone, 0:00:17.560 --> 0:00:20.439 welcome to tech stuff. My name is Chris Poulette, and 0:00:20.440 --> 0:00:23.000 I am an editor at how stuff works dot com. 0:00:23.000 --> 0:00:25.680 Sitting across from me, as always today looks a little 0:00:25.720 --> 0:00:29.920 withdrawn his senior writer, Jonathan Strickland. They say the best 0:00:29.960 --> 0:00:35.400 things in life are free. You're such a card. Today 0:00:35.440 --> 0:00:37.320 we're going funds out of the way. Early to they 0:00:37.400 --> 0:00:42.199 were gonna talk about automated teller machines or a t 0:00:42.400 --> 0:00:47.080 M machines. We'll also be talking about personal identification numbers 0:00:47.200 --> 0:00:51.519 or pen numbers. Five people just paused the podcast so 0:00:51.600 --> 0:00:54.320 that they could write us an angry email about the redundancy. 0:00:54.360 --> 0:00:58.120 They probably also went ahead and unsubscribed. Possibly yeah, but 0:00:58.160 --> 0:01:00.720 we in case just for you people who have those 0:01:00.720 --> 0:01:04.280 pet peeves. And I totally understand. I'm nothing. I share 0:01:04.280 --> 0:01:07.280 those pet peeves. I am not criticizing. You may very 0:01:07.319 --> 0:01:10.880 well hear me say a t M machine and or 0:01:11.080 --> 0:01:16.800 pen number at least once in this podcast as a way, 0:01:17.040 --> 0:01:19.119 and and not not in a way to needle you 0:01:19.440 --> 0:01:23.520 just that's it's it's stamped in my brain that way. Well, 0:01:23.600 --> 0:01:27.520 pen number two is also a little bit more useful 0:01:27.520 --> 0:01:30.959 than a t M machine since pen is also a pin. 0:01:31.120 --> 0:01:34.759 Do you have your pen? Yeah? Oh right, no, the 0:01:34.840 --> 0:01:38.080 number exactly? Do you have your personal identification numbers? So yes, 0:01:38.080 --> 0:01:41.160 we're talking about a t M S today, and we've 0:01:41.160 --> 0:01:42.840 had a few people ask us about how a t 0:01:43.000 --> 0:01:45.160 m S work. We assume it was all on the 0:01:45.240 --> 0:01:49.200 up and up, not to find out how they work 0:01:49.280 --> 0:01:52.520 so that you can exploit them. I did find out 0:01:52.560 --> 0:01:56.080 an article about how to hack into one. Wow. Well, 0:01:56.160 --> 0:01:58.800 and that gets a little complicated. We'll talk about that. 0:01:59.000 --> 0:02:02.279 Why that is the Yeah, because it really does depend. 0:02:02.640 --> 0:02:04.920 But first let's talk about how a t m S 0:02:05.320 --> 0:02:10.600 came to be. That's somewhat in dispute. Yes, um, there 0:02:10.600 --> 0:02:15.920 there are multiple people who were inventing things that resemble 0:02:16.040 --> 0:02:18.440 what a t M S are today in different parts 0:02:18.440 --> 0:02:22.239 of the world around the same time, although the earliest 0:02:22.240 --> 0:02:25.799 one I could find was from a Mr. Luther sim 0:02:25.919 --> 0:02:29.480 Jean Yes, who was born in Turkey. I was a 0:02:29.560 --> 0:02:33.440 son of Armenians who were Sadly his family was was 0:02:33.639 --> 0:02:37.680 broken up during a genocide in the early twentieth century, 0:02:37.919 --> 0:02:42.600 and he uh. He eventually immigrated to the United States, 0:02:43.280 --> 0:02:46.200 and he came up with an idea that eventually he 0:02:46.240 --> 0:02:49.919 called the bank matic Automated teller machine. So that's where 0:02:49.919 --> 0:02:53.120 we get a t M. That's he's the one who 0:02:53.320 --> 0:02:56.800 came up with the term. And this was around nineteen nine. 0:02:57.720 --> 0:03:01.600 But this was doesn't resemble the way at M S 0:03:01.639 --> 0:03:05.320 look and and act now. But it was an idea 0:03:05.400 --> 0:03:08.640 of a of an a machine that would dispense money. 0:03:09.240 --> 0:03:12.919 And it was run for a six month trial at 0:03:12.960 --> 0:03:15.679 the City Bank of New York, which we now call 0:03:16.400 --> 0:03:20.200 City Bank. Yes, uh and uh. After the six months, 0:03:20.280 --> 0:03:23.920 the trial ended and City Bank decided not to extend 0:03:24.080 --> 0:03:27.960 the trial, not to implement it and UM, at least 0:03:27.960 --> 0:03:31.280 according to one source I read, the reason behind it 0:03:31.320 --> 0:03:33.000 was that it just didn't get a lot of traction. 0:03:33.240 --> 0:03:37.480 The people. People just didn't want to use a machine 0:03:38.080 --> 0:03:40.760 to interact with their bank accounts. They preferred to have 0:03:40.920 --> 0:03:44.480 a person to person interaction in a bank and UM. 0:03:44.520 --> 0:03:46.400 Apparently the people who were using it were a bunch 0:03:46.440 --> 0:03:50.360 of air dwells. Yeah, I read about that too. Basically, 0:03:50.400 --> 0:03:53.440 they they the idea of being that the only people 0:03:53.480 --> 0:03:56.760 who would not want to talk to a teller. Are 0:03:56.800 --> 0:03:58.840 the people who would prefer that you didn't know they 0:03:58.920 --> 0:04:01.440 were depositing or with drawing money in the first place. Yeah, 0:04:01.440 --> 0:04:05.000 so we're talking about people with ill gotten games, gamblers 0:04:05.000 --> 0:04:09.720 for example, places where gambling was not legal, and uh, 0:04:09.880 --> 0:04:11.840 you know, you might not want to have to answer 0:04:11.880 --> 0:04:14.520 tricky questions like how did you come upon this sum 0:04:14.560 --> 0:04:19.039 of money my good man? Yes, yes, exactly. So. Anyway, 0:04:19.080 --> 0:04:23.839 that was the first recorded incidents I could find of 0:04:23.920 --> 0:04:27.080 someone trying to create an a t M. Yes, and 0:04:27.160 --> 0:04:30.960 again it was it was an interesting experiment that ultimately 0:04:31.600 --> 0:04:35.520 failed at that time. Yeah. Now, a lot of what 0:04:35.560 --> 0:04:38.000 I read about the early days of a t M 0:04:38.080 --> 0:04:41.800 s UM, they weren't a t M s. They didn't 0:04:41.839 --> 0:04:47.000 function like today's machines do. UM. In some cases you 0:04:47.040 --> 0:04:50.200 needed a special card that wasn't actually tied to your 0:04:50.279 --> 0:04:52.360 your bank account. In fact, a lot of them used 0:04:52.400 --> 0:04:55.760 credit cards instead UM. For a long time, credit cards 0:04:55.760 --> 0:05:00.720 were looked down upon UM. But some of muse special 0:05:00.839 --> 0:05:03.880 vouchers or coins, yes, and the token. Yeah. And in 0:05:03.920 --> 0:05:06.839 Britain you had to, uh, on one of the early trials, 0:05:06.880 --> 0:05:08.840 you had to go inside and get a voucher. You 0:05:08.880 --> 0:05:11.280 would get a ten pound voucher. So if you wanted 0:05:11.320 --> 0:05:13.840 fifty pounds, you have to get five vouchers that would 0:05:13.839 --> 0:05:16.159 you take outside of the machine, which raises the question 0:05:16.279 --> 0:05:18.960 why would you not just go and withdraw the money 0:05:19.000 --> 0:05:21.640 directly while you're there, unless, of course, you just wanted 0:05:21.720 --> 0:05:25.160 the convenience of being able to get at ten pounds 0:05:25.240 --> 0:05:27.279 at any given time in the future. And I guess 0:05:27.320 --> 0:05:29.919 that's the argument you'd have to make, Like, instead of 0:05:29.960 --> 0:05:33.039 walking out the bank with fifty pounds, which you know 0:05:33.120 --> 0:05:35.080 you may or may not need at that time, you 0:05:35.080 --> 0:05:39.880 could have uh, five ten pound vouchers, and then as 0:05:40.000 --> 0:05:42.880 the as you go about your business throughout the coming days, 0:05:43.480 --> 0:05:46.960 you realize, oh, I need some more walking around money 0:05:47.480 --> 0:05:50.599 or getting about money, as I like to say, you 0:05:50.640 --> 0:05:52.240 would go and use one of those vouchers to get 0:05:52.240 --> 0:05:55.760 some more money out. But it did seem to decrease 0:05:55.839 --> 0:06:00.400 the convenience factor of the automated teller machine somewhat. But yeah, 0:06:00.440 --> 0:06:04.279 in this case, you wouldn't need a card with stuff 0:06:04.279 --> 0:06:06.200 and coded on it. You would just need your voucher 0:06:06.240 --> 0:06:08.520 to put in and then it would spit money out. 0:06:08.560 --> 0:06:12.440 It became like a money vending machine. Yeah, yeah, and uh. 0:06:12.480 --> 0:06:15.000 In nineteen sixty eight in Britain there was a several 0:06:15.000 --> 0:06:18.599 banks used the device UM that would use a card, 0:06:19.200 --> 0:06:22.320 but not a card that you always carried with you. 0:06:22.560 --> 0:06:24.599 It basically worked like the voucher. You'd stick the card 0:06:24.600 --> 0:06:27.039 in the machine, you get your money out, and the 0:06:27.040 --> 0:06:29.680 machine would keep your card, which is kind of a 0:06:29.680 --> 0:06:32.760 pain in the neck. Yeah, it's kind of what happens 0:06:32.760 --> 0:06:35.120 to you now when your machine eats your card and 0:06:35.279 --> 0:06:38.279 uh yeah, I've had that happen too. That's not a 0:06:38.320 --> 0:06:41.880 good feeling, is it, um, Yeah, except this time in 0:06:41.920 --> 0:06:43.960 this case we're talking about it doing it on purpose. 0:06:44.600 --> 0:06:47.560 Uh yeah. So some of the other players in this space, 0:06:47.640 --> 0:06:50.280 and that's mainly the real development of a t M 0:06:50.360 --> 0:06:53.720 S beyond the early nineteen thirty nine example took place 0:06:53.760 --> 0:06:57.760 in the sixties. So you had people like James Goodfellow, 0:06:58.080 --> 0:07:00.640 who he secured a patent on an a t M 0:07:00.800 --> 0:07:03.480 like machine in nineteen sixty six. He also came up 0:07:03.480 --> 0:07:06.479 with the idea of storing a personal identification number on 0:07:06.560 --> 0:07:09.200 a magnetic strip that would be printed on the back 0:07:09.240 --> 0:07:11.920 of a card, so that would become the a t 0:07:12.080 --> 0:07:16.000 M card eventually. Uh. They also John D. White, who 0:07:16.120 --> 0:07:19.200 invented a free standing automated teller machine. A lot of 0:07:19.200 --> 0:07:22.680 these other machines were built into the corner of a building. 0:07:22.760 --> 0:07:26.080 It was actually part of a larger structure. UM. This 0:07:26.200 --> 0:07:30.040 was more of a free standing um A machine. Uh. 0:07:30.120 --> 0:07:33.320 And then there's John Shepherd Baron, who I think, I 0:07:33.360 --> 0:07:36.720 think most sources I saw credited him as the true 0:07:36.760 --> 0:07:39.960 father of the a t M. Yeah, John Shepherd Baron, 0:07:40.040 --> 0:07:43.760 because he was the guy who created the first real 0:07:44.040 --> 0:07:49.520 fully electronic automated teller machine and uh, and the very 0:07:49.600 --> 0:07:53.080 first one was installed in Barclays Bank in London in 0:07:53.200 --> 0:07:59.040 nineteen sixty seven. But you also had Don Wetzel. Now 0:07:59.560 --> 0:08:03.040 he was working in America and his machine started coming 0:08:03.040 --> 0:08:06.560 out around nineteen eight, and he was known to have 0:08:07.040 --> 0:08:10.920 worked at least in part on Shepherd Baron's work as well. 0:08:11.000 --> 0:08:14.240 He kind of took Shepherd Baron's work and then uh 0:08:14.880 --> 0:08:17.760 change things like enhanced things and drop some things and 0:08:18.000 --> 0:08:20.680 included other things. So uh sort of used as a 0:08:20.760 --> 0:08:23.600 launching point for his own work. So you get a 0:08:23.600 --> 0:08:27.240 lot of conflicting information about who is really the inventor 0:08:27.320 --> 0:08:28.480 of the A t M. I think part of it 0:08:28.520 --> 0:08:31.320 depends on where you're from. If you're from England, then 0:08:31.320 --> 0:08:37.079 it's John Shepherd Baron. Yeah, and uh. Um the National 0:08:37.200 --> 0:08:42.240 Museum of American History, the Smithsonian recognized wetzel Um and 0:08:42.320 --> 0:08:46.199 his company Docutel, which was a baggage handling company UM, 0:08:46.240 --> 0:08:49.920 as the people who created the A t M. So 0:08:51.320 --> 0:08:53.200 it's yeah, I guess. And like I said, it all 0:08:53.200 --> 0:08:58.000 depends on who you ask, sort of like television or radio. Yeah, 0:08:58.040 --> 0:09:02.440 they're like many other inventors. There's uh the story, the 0:09:02.480 --> 0:09:05.679 real story is far more complicated than just a factoid 0:09:05.760 --> 0:09:09.800 that you'll find in a history book. Yeah. Now, I 0:09:09.880 --> 0:09:14.040 was gonna say. Now, even though in the sixties, UM 0:09:14.840 --> 0:09:17.400 A t M s became a lot more common, banks 0:09:17.400 --> 0:09:22.199 started as uh including them as part of their services. UM. 0:09:22.440 --> 0:09:25.000 As a matter of fact, Uh, the Fortune article I 0:09:25.040 --> 0:09:30.560 read by Ellen Florian Um and uh Doris Burke and 0:09:30.679 --> 0:09:35.079 Jenny Merrow basically was saying that they quoted a chemical 0:09:35.120 --> 0:09:39.360 bank advertisement and said, UM, on September two, our bank 0:09:39.400 --> 0:09:41.680 will open at nine o'clock and we'll never close again. 0:09:42.280 --> 0:09:44.600 And that was the Rockville Center branch at ten North 0:09:44.720 --> 0:09:47.400 Village Avenue on Long Island. Yeah. The idea being that, 0:09:47.520 --> 0:09:50.240 of course, you could access your account at any time 0:09:50.280 --> 0:09:53.680 and make withdrawals or transfers or whatever without having to 0:09:53.720 --> 0:09:56.640 go into the bank. Because of course, the reason why 0:09:57.400 --> 0:09:59.960 people were coming up with this in the first place 0:10:00.120 --> 0:10:07.160 was for convenience, because bank hours are notoriously um short. Yeah, 0:10:08.040 --> 0:10:12.200 that will people talk about bankers hours, where you know, 0:10:12.240 --> 0:10:14.079 in order to actually go and visit the bank, you 0:10:14.160 --> 0:10:16.840 might have to take time out of your work day 0:10:17.040 --> 0:10:18.480 in order to you know, and then you have to 0:10:18.480 --> 0:10:21.360 go inside a bank and stand in line. See, for 0:10:21.480 --> 0:10:23.560 some of our listeners, this is going to sound completely 0:10:23.600 --> 0:10:27.040 foreign to them because apart from maybe opening up a 0:10:27.080 --> 0:10:29.440 bank account or perhaps going in for a loan or 0:10:29.480 --> 0:10:32.680 something like that, you just don't have to do that anymore. Yeah, 0:10:32.679 --> 0:10:33.920 I mean, if you want to do the day to 0:10:34.000 --> 0:10:36.600 day stuff, depositing a check, finding out how much money 0:10:36.600 --> 0:10:39.960 you have in the bank, making withdrawal, maybe even transferring 0:10:40.000 --> 0:10:41.840 money between accounts, you can do all that in an 0:10:41.840 --> 0:10:43.520 a t M. Yeah. In some cases, you can do 0:10:43.600 --> 0:10:46.800 some of that through online banking as well. So we've 0:10:46.840 --> 0:10:50.280 we've almost completely eliminated the need to go into a 0:10:50.320 --> 0:10:54.120 physical space. But back in the day, it used to 0:10:54.120 --> 0:10:56.160 be that if you wanted to do anything to do 0:10:56.280 --> 0:10:58.800 with your money. You had to go and stand in 0:10:58.840 --> 0:11:00.760 line and wait to talk to a teller, and then 0:11:00.840 --> 0:11:04.000 they pull up your records and do you do all 0:11:04.040 --> 0:11:07.440 that in person, face to face. And actually in the sixties, 0:11:07.480 --> 0:11:12.640 back when, uh, back when these were launching again, the 0:11:12.679 --> 0:11:16.520 people weren't flocking to them immediately. There were In fact, 0:11:16.559 --> 0:11:19.160 some banks were a little skeptical that people would ever 0:11:19.600 --> 0:11:22.640 want to interact with a machine as opposed to a human. 0:11:23.040 --> 0:11:26.120 They thought that the human interaction was a key component 0:11:26.280 --> 0:11:29.720 of the banking process. And it really wasn't until the 0:11:29.800 --> 0:11:34.000 eighties that A t M s started to truly take off. Well, 0:11:34.920 --> 0:11:39.600 the Fortune article actually has a particular event that they 0:11:39.640 --> 0:11:42.760 credit with the takeoff of the A t M And 0:11:42.800 --> 0:11:45.480 what might that be. Well, as it turns out, it 0:11:45.640 --> 0:11:50.160 took Mother Nature's involvement to spur people to use the 0:11:50.200 --> 0:11:52.079 A t M. According to them, it's not nice to 0:11:52.120 --> 0:11:55.840 fool Mother Nature. No, we know what side of the 0:11:55.840 --> 0:11:59.720 bread your butter? Never mind, all right, go ahead anyway. 0:12:00.240 --> 0:12:05.080 In January in New York they got seventeen inches of snow, 0:12:05.960 --> 0:12:09.319 which slowed business to a crawl because a lot of 0:12:09.360 --> 0:12:13.480 places couldn't open. And they said, um, again, this is 0:12:13.520 --> 0:12:16.920 citing the Fortune article. Um, there was a commercial that 0:12:17.040 --> 0:12:21.360 City Bank released saying, UM, you know, hey, you can 0:12:21.480 --> 0:12:25.920 use these machines anytime, whether the bank's open or not. Uh. 0:12:25.960 --> 0:12:29.079 And they had a new tagline, the City Never sleeps 0:12:31.000 --> 0:12:35.480 um and it said, um, there the machines used increased 0:12:36.280 --> 0:12:41.280 during the storm, and uh. City banks market share in 0:12:41.360 --> 0:12:45.280 New York City deposits had doubled, and so the rest 0:12:45.280 --> 0:12:49.760 of the banks moved to catch up. And that basically 0:12:49.920 --> 0:12:53.280 started a revolution, at least in New York. Um. Of 0:12:53.320 --> 0:12:56.360 course that's a lot of people, so that that can 0:12:56.400 --> 0:12:58.440 affect things. And people go in there and see how 0:12:58.520 --> 0:13:00.480 people are using the A t M s and they 0:13:00.480 --> 0:13:05.240 go back home. Yep. Yeah, And like I said, in 0:13:05.280 --> 0:13:07.480 the eighties that really started to take off. So I 0:13:07.520 --> 0:13:10.280 guess now we can finally start getting into what makes 0:13:10.360 --> 0:13:12.679 up an A t M and how they how they 0:13:12.679 --> 0:13:16.640 actually work. Uh. Now, part of this involves the way 0:13:16.640 --> 0:13:18.719 that we access the A t M s uh. And 0:13:19.000 --> 0:13:22.080 and not just with the key the keypad or the 0:13:22.120 --> 0:13:26.080 touch screen depending upon the model that you're using, but 0:13:26.240 --> 0:13:29.520 the card you have, your A t M card, whatever 0:13:29.600 --> 0:13:31.360 you're using to access the A t M. And there 0:13:31.360 --> 0:13:35.199 are variations on this, but all of them have a 0:13:35.240 --> 0:13:41.640 magnetic stripe or mag stripe on them. And uh, you 0:13:41.720 --> 0:13:44.080 might say, well, what the heck is a magnetic stripe, Well, 0:13:44.120 --> 0:13:46.920 it's kind of what sounds like it's a uh, it's 0:13:47.000 --> 0:13:50.280 it's a plastic like film. It's on the back of 0:13:50.320 --> 0:13:54.160 your card that has lots and lots and lots of 0:13:54.840 --> 0:14:00.319 tiny iron based magnetic particles. Yes, as a matter of fact, 0:14:00.400 --> 0:14:05.000 it's very similar, if not nearly identical to the material 0:14:05.080 --> 0:14:09.120 that they used to use in recording tape cassette tape 0:14:09.120 --> 0:14:12.200 cassette tapes, real to real tapes, eight track tapes, also 0:14:12.440 --> 0:14:16.160 floppy disks. The material inside there, I mean, that's even 0:14:16.200 --> 0:14:18.600 most of them are even the same brownish color. Right. 0:14:18.720 --> 0:14:21.120 And the way you right to this strip is that 0:14:21.200 --> 0:14:25.920 you you magnetize these little particles. Each of the particles 0:14:25.960 --> 0:14:29.600 acts like its own bar magnet, right, and you magnetize 0:14:29.640 --> 0:14:32.840 them to either have a north or south pole direction 0:14:33.880 --> 0:14:38.880 on each particle, and so that's like bits, zeros and ones. 0:14:39.560 --> 0:14:43.720 So by creating them in either a north or south 0:14:43.760 --> 0:14:47.800 pole direction, and then you you've got thousands of these, right, 0:14:48.000 --> 0:14:52.000 and in one strip you can encode information that way, 0:14:52.280 --> 0:14:55.720 and that information is going to have things like the 0:14:55.720 --> 0:14:59.080 the account number on it, so that it has you know, 0:14:59.120 --> 0:15:02.800 it's able to say this card belongs to this account. Uh. 0:15:02.840 --> 0:15:05.720 It may also have the pen on their the personal 0:15:05.760 --> 0:15:09.680 identification number, so that you can have that as sort 0:15:09.680 --> 0:15:12.680 of a key pass intrigue. You know, as long as 0:15:12.680 --> 0:15:16.720 the pen that you enter into the A t M 0:15:16.880 --> 0:15:19.440 matches the one that's on the card and in the account, 0:15:19.840 --> 0:15:22.480 as long as all three of those are are the same, 0:15:23.120 --> 0:15:26.920 then you'll be able to access your information. So that's 0:15:27.000 --> 0:15:29.920 on your card, which means of course that the a 0:15:30.000 --> 0:15:34.320 t M has to have some sort of card reader involved, 0:15:34.560 --> 0:15:37.080 which you know it's a magnetic stripe reader that you know. 0:15:37.520 --> 0:15:40.240 Depending on the style of the A t M, it 0:15:40.280 --> 0:15:42.640 maybe one where you put your card in and it 0:15:42.720 --> 0:15:45.320 sucks it into the machine and you hope when your 0:15:45.320 --> 0:15:48.520 transactions over it will spit it back out again. Or 0:15:48.640 --> 0:15:51.240 what I see most commonly now are the kinds where 0:15:51.240 --> 0:15:54.000 you swipe it. You either have a vertical swipe where 0:15:54.040 --> 0:15:56.560 you just swipe the card down the side of a 0:15:56.600 --> 0:15:59.320 little reader or you inserted into a slot and pull 0:15:59.320 --> 0:16:02.320 it back out again quickly, and in either case, the 0:16:02.560 --> 0:16:05.480 what happens is those little magnets go past a detector. 0:16:06.320 --> 0:16:09.480 Because the magnets are in motion, the detector detects the 0:16:09.520 --> 0:16:12.440 difference of the magnetism on each of those little bars 0:16:12.480 --> 0:16:15.680 and can read that as whatever the information is. Yeah, 0:16:15.760 --> 0:16:19.440 So all the information that's printed on the card, um 0:16:19.480 --> 0:16:21.560 the number that's embossed in the card in your name, 0:16:21.800 --> 0:16:23.840 the machine is not reading or looking at any of 0:16:23.920 --> 0:16:27.640 that stuff. It's taking everything from the magnetic stripe. Which 0:16:27.960 --> 0:16:32.640 is why you should not put your your credit cards 0:16:32.720 --> 0:16:34.840 or a T M S cards or anything like that 0:16:35.280 --> 0:16:40.080 near powerful magnets, right, because that could actually realign those 0:16:40.120 --> 0:16:43.600 little magnetic particles inside the film. And some people call 0:16:43.640 --> 0:16:46.600 it de magnetizing, but really it's just realigning those polls 0:16:46.600 --> 0:16:49.600 so it no longer it might spout out gibberish now 0:16:49.680 --> 0:16:52.640 when you when you swipe it or anyway, it's not 0:16:52.720 --> 0:16:55.840 going to correspond with your information and suddenly your card 0:16:55.880 --> 0:16:58.680 doesn't work anymore. Yeah, you can also find the same 0:16:58.720 --> 0:17:00.720 thing if you've used it too much, if the magnetic 0:17:00.720 --> 0:17:04.719 stripe gets damaged in some way. Um. You know some 0:17:04.760 --> 0:17:07.560 people say that eel skin wallets. Yeah, I hear that 0:17:07.600 --> 0:17:09.199 a lot, because you know, and there are a lot 0:17:09.240 --> 0:17:12.359 of different theories about Actually, the theory I've heard that 0:17:12.600 --> 0:17:14.680 seems to explain it the most, or it seems to 0:17:14.720 --> 0:17:18.359 be the most logical to me. Eel skin wallets some 0:17:18.400 --> 0:17:21.480 people claim came from electric eels and that somehow has 0:17:21.560 --> 0:17:24.399 some sort of electric impulse still stored in it, and 0:17:24.440 --> 0:17:28.439 that's what's screwing up the cards. Count me skeptical on 0:17:28.440 --> 0:17:31.640 that one, exactly. But a lot of these have a 0:17:31.680 --> 0:17:36.760 magnetic clasp so that when you close it, it remains closed. 0:17:36.800 --> 0:17:40.359 And the magnetic clasp depending on how your card is, 0:17:40.720 --> 0:17:43.639 how you're storing your card in the wallet, Uh, the 0:17:43.680 --> 0:17:45.800 stripe might be close enough to the magnetic class that 0:17:45.840 --> 0:17:50.040 the magnetic class is is realigning those magnetic particles in 0:17:50.040 --> 0:17:55.280 the film, So don't do that. Well yeah, so once that, uh, 0:17:55.640 --> 0:17:58.520 you're you have the magnetic card reader. We've talked about 0:17:58.560 --> 0:18:04.359 that and and basically the information is going into a computer. Yeah, 0:18:05.119 --> 0:18:08.520 very basic cpu inside every a t M and in 0:18:08.520 --> 0:18:11.000 fact a lot of them run windows, yeah, which we'll 0:18:11.000 --> 0:18:14.320 get to. The earlier A t M s were all proprietary. 0:18:14.320 --> 0:18:17.720 Oh yeah, Now that was when if you had an 0:18:17.760 --> 0:18:21.720 account with UM Bank something, you know, First National Bank, 0:18:21.880 --> 0:18:24.320 and you wanted to go to Second National Bank, you 0:18:24.359 --> 0:18:26.399 were on your own. You have to find an a 0:18:26.480 --> 0:18:28.719 t M for with First National Bank or you are 0:18:28.760 --> 0:18:31.240 out of luck because your card wouldn't work the system 0:18:31.560 --> 0:18:35.879 wasn't compatible. However, it also meant that those A t 0:18:36.080 --> 0:18:40.120 M s had the benefit of security through obscurity. That's 0:18:40.119 --> 0:18:45.240 true because UH would be thief would have to focus 0:18:45.320 --> 0:18:49.320 on a particular type of a t M and the 0:18:49.359 --> 0:18:51.240 things that might work on that a t M would 0:18:51.240 --> 0:18:53.800 not necessarily work on a t M s for other banks, 0:18:54.359 --> 0:18:58.640 So it's somewhat limited the liability and the vulnerability of 0:18:58.640 --> 0:19:01.440 those machines. Once the machine started to move toward more 0:19:01.600 --> 0:19:05.800 computer based operating systems like Lennox and Windows, then you 0:19:05.880 --> 0:19:10.000 opened up new opportunities for thieves to target specific parts 0:19:10.040 --> 0:19:13.160 of the A t M infrastructure and UH and made 0:19:13.160 --> 0:19:16.480 it in some ways more vulnerable than the older models. 0:19:16.480 --> 0:19:19.640 Now I say that, but the truth is you can 0:19:19.640 --> 0:19:22.840 actually find these older model a t M s on 0:19:23.040 --> 0:19:27.120 plenty of sites like eBay, where you could buy an 0:19:27.119 --> 0:19:29.800 a t M if you wanted to, and if your 0:19:29.920 --> 0:19:33.119 goal was to deconstruct to hack this a t M 0:19:33.160 --> 0:19:35.760 so you would learn how it works, you could potentially 0:19:35.760 --> 0:19:39.680 find vulnerabilities in that system to exploit. Don't do that, 0:19:39.920 --> 0:19:44.760 it's illegal. You don't want to do that. But there 0:19:44.760 --> 0:19:46.920 that That is one of the downsides to the old 0:19:46.960 --> 0:19:50.000 systems too, is that, you know, it's not like these 0:19:50.040 --> 0:19:51.879 things were. It's not like you had to have a 0:19:51.920 --> 0:19:54.879 license to own one. You know, you just had to 0:19:54.880 --> 0:19:57.280 buy one. So you just had to find someone willing 0:19:57.320 --> 0:19:59.560 to sell one and then you could buy it. So, 0:20:00.600 --> 0:20:03.840 but yes, you've got your CPU in there. Uh. However, 0:20:03.880 --> 0:20:08.280 the a t M is not its own standalone UM machine. 0:20:08.400 --> 0:20:12.720 Like it's not that it's it's disconnected from the outside world. No, 0:20:13.080 --> 0:20:14.880 but if you if you think about it, it's it's 0:20:15.000 --> 0:20:18.280 very much like the computer that sits on your desktop 0:20:18.400 --> 0:20:22.680 or laptop. So you've got a screen for customer uh 0:20:22.800 --> 0:20:25.840 for basically an output device. You've got a printer that 0:20:25.920 --> 0:20:29.320 prints out. You've got an input device or maybe two. 0:20:29.320 --> 0:20:30.720 You might have a touch screen. You might have a 0:20:30.800 --> 0:20:34.880 key pad uh to type in members or both UM 0:20:34.960 --> 0:20:39.040 and hopefully both for those of people who have vision impairments, 0:20:39.359 --> 0:20:43.159 right right. And then you also have uh, basically an 0:20:43.160 --> 0:20:46.919 internet connection. It may be on a private network, it 0:20:46.960 --> 0:20:49.200 might be some kind yeah, very it might be a 0:20:49.880 --> 0:20:55.119 closed off, private connection, but it goes to a whatever 0:20:55.240 --> 0:20:59.480 bank is behind that particular a t M. Yeah, it'll 0:20:59.520 --> 0:21:02.439 have a network connection of some type to communicate with 0:21:02.560 --> 0:21:05.800 a a server somewhere that has account information on it. 0:21:06.359 --> 0:21:08.800 So if you have three in your account you want 0:21:08.800 --> 0:21:13.040 to withdraw twenty dollars, it will say, okay, well Jonathan's 0:21:13.080 --> 0:21:16.920 got three, so I can give him twenty dollars and 0:21:17.080 --> 0:21:19.960 he's withdrawn twenty dollars. So it makes a note of 0:21:19.960 --> 0:21:21.399 that in the account, so it says, now he has 0:21:21.400 --> 0:21:24.320 two left. Yeah. The way this works is that so 0:21:24.400 --> 0:21:27.200 you can think of the especially the older a t 0:21:27.400 --> 0:21:30.160 M s Um, we're really thin clients. Yeah they were, 0:21:30.280 --> 0:21:33.320 they were. You know. The the had essentially enough power 0:21:33.440 --> 0:21:38.359 for it to read the strip to uh uh to two, 0:21:38.800 --> 0:21:43.080 allow you to input your pen and to display the information. 0:21:43.480 --> 0:21:46.159 But then what it would do is the terminal that 0:21:46.200 --> 0:21:49.639 you're using would connect to a host processor. Now this 0:21:49.680 --> 0:21:54.359 would be a computer that belongs to whatever financial institution 0:21:54.600 --> 0:21:58.840 again is owns that a t M. Now, if that's 0:21:58.880 --> 0:22:01.480 your bank, then that's a much where this ends. It goes. 0:22:01.520 --> 0:22:04.919 It refers to your account. Make it confirms that you 0:22:05.200 --> 0:22:06.760 that you are who you say you are and that 0:22:07.000 --> 0:22:09.800 at least according to your pen and that you have 0:22:09.880 --> 0:22:12.520 the funds that you require in order for you to 0:22:12.560 --> 0:22:14.399 get whatever it is you're asking. So again like in 0:22:14.440 --> 0:22:16.679 your example, that that you have at least twenty dollars 0:22:16.680 --> 0:22:20.199 you can withdraw um and then it will send the 0:22:20.240 --> 0:22:24.280 information back to the machine that you're at and either 0:22:24.400 --> 0:22:27.280 confirmed that it can dispense the cash or deny it, 0:22:28.000 --> 0:22:31.680 and then the machine does whatever it's supposed to do. Uh. 0:22:31.720 --> 0:22:34.879 If your bank is a different bank, then what happens 0:22:34.960 --> 0:22:36.879 is the it will go to the host processor. The 0:22:36.880 --> 0:22:41.200 host processor will then route that request to the specific 0:22:41.240 --> 0:22:46.080 financial institution that you belong to and get the permission there, 0:22:46.480 --> 0:22:51.600 and then your bank essentially will wirelessly transfer funds to 0:22:52.040 --> 0:22:55.800 the financial institution and charge of that a t M. 0:22:55.840 --> 0:22:59.480 And then that financial institution will allow the a t 0:22:59.640 --> 0:23:02.800 M to dispense cash because the money has been you know, 0:23:02.840 --> 0:23:05.640 it's not losing money, it's had the wireless transfer from 0:23:05.680 --> 0:23:09.359 your bank. This is also why you'll find a lot 0:23:09.400 --> 0:23:13.440