WEBVTT - CLASSIC: How ATMS Work 0:00:04.240 --> 0:00:07.920 Get in touch with technology with text Stuff from Stuff stat. 0:00:12.080 --> 0:00:14.960 Hey there, guys, it's Jonathan. This is Tech Stuff. It's 0:00:14.960 --> 0:00:18.800 time for another classic episode. Yes, indeed, we are still 0:00:18.920 --> 0:00:22.040 getting everything ready to go with our new studio. I'm 0:00:22.079 --> 0:00:24.400 recording this in our old studio, so I'm just guessing 0:00:24.400 --> 0:00:26.960 that that's true. At any rate, I wanted to talk 0:00:27.000 --> 0:00:31.319 about a classic episode text Stuff withdraws from the a 0:00:31.480 --> 0:00:34.519 t M. This one has my old buddy Chris Pallette 0:00:34.560 --> 0:00:36.800 as the co host in this episode, and we talk 0:00:36.880 --> 0:00:39.480 all about what a t M S are and I 0:00:39.479 --> 0:00:41.600 think I say a t M machine and pen number 0:00:41.640 --> 0:00:48.440 about a billion time. Enjoy. I'm talking about a t 0:00:48.640 --> 0:00:51.559 M S today. And we've had a few people ask 0:00:51.680 --> 0:00:53.880 us about how a t M S work. We assume 0:00:54.040 --> 0:00:57.880 it was all on the up and up, not to 0:00:57.920 --> 0:01:00.720 find out how they work so that you can exploit them. 0:01:01.280 --> 0:01:03.400 I did find out an article about how to hack 0:01:03.440 --> 0:01:07.520 into one. Wow. Well, and that gets a little complicated. 0:01:07.560 --> 0:01:10.360 We'll talk about that. Why that is in the case, Yeah, 0:01:10.360 --> 0:01:13.440 because it really does depend. But first let's talk about 0:01:13.520 --> 0:01:17.640 how a t M S came to be. That's somewhat 0:01:17.640 --> 0:01:21.880 in dispute. Yes, um, there there are multiple people who 0:01:21.959 --> 0:01:26.320 were inventing things that resemble what a t M s 0:01:26.319 --> 0:01:29.720 are today in different parts of the world around the 0:01:29.760 --> 0:01:33.200 same time, although the earliest one I could find was 0:01:33.680 --> 0:01:37.520 from a Mr. Luther sim Jean Yes who was born 0:01:37.560 --> 0:01:41.039 in Turkey. It was the son of Armenians who were 0:01:41.480 --> 0:01:45.600 sadly his family was was broken up during a genocide 0:01:45.680 --> 0:01:49.440 in the early twentieth century, and he uh. He eventually 0:01:49.640 --> 0:01:54.160 immigrated to the United States and he came up with 0:01:54.320 --> 0:01:57.880 an idea that eventually he called the bank matic Automated 0:01:58.040 --> 0:02:01.160 Teller machine. So that's where we get t M that's 0:02:01.400 --> 0:02:04.360 he's the one who came up with the term. And 0:02:04.640 --> 0:02:09.640 this was around nineteen nine. But this was doesn't really 0:02:09.639 --> 0:02:12.120 resemble the way a t M s look and and 0:02:12.440 --> 0:02:15.440 act now. But it was an idea of a of 0:02:15.520 --> 0:02:19.520 an machine that would dispense money. And it was run 0:02:19.560 --> 0:02:23.800 for a six month trial at the City Bank of 0:02:23.880 --> 0:02:28.000 New York, which we now call City Bank. Yes uh. 0:02:28.040 --> 0:02:31.400 And after the six months the trial ended and City 0:02:31.400 --> 0:02:35.760 Bank decided not to extend the trial, not to implement it, 0:02:36.320 --> 0:02:39.080 and um, at least according to one source I read, 0:02:39.520 --> 0:02:41.760 the reason behind it was that it just didn't get 0:02:41.760 --> 0:02:45.400 a lot of traction. The people people just didn't want 0:02:45.480 --> 0:02:49.440 to use a machine to interact with their bank accounts. 0:02:49.480 --> 0:02:52.440 They preferred to have a person to person interaction in 0:02:52.480 --> 0:02:55.480 a bank. And apparently the people who were using it 0:02:55.520 --> 0:02:58.640 were a bunch of air dwells. Yeah, I read about 0:02:58.639 --> 0:03:02.000 that too. Basically, they they the idea of being that 0:03:02.280 --> 0:03:05.560 the only people who would not want to talk to 0:03:05.600 --> 0:03:07.800 a teller are the people who would prefer that you 0:03:07.800 --> 0:03:10.200 didn't know they were depositing or withdrawing money in the 0:03:10.240 --> 0:03:12.440 first place. Yea, so we're talking about people with ill 0:03:12.520 --> 0:03:18.239 gotten game gamblers, for example, places where gambling was not legal, 0:03:18.880 --> 0:03:20.880 and um, you know, you might not want to have 0:03:20.919 --> 0:03:23.520 to answer tricky questions like how did you come upon 0:03:23.600 --> 0:03:28.600 this sum of money, my good man? Yes, yes, exactly. So. Anyway, 0:03:28.639 --> 0:03:33.360 that was the first recorded incidents I could find of 0:03:33.480 --> 0:03:36.600 someone trying to create an a t M. Yes, and 0:03:36.680 --> 0:03:40.480 again it was it was an interesting experiment that ultimately 0:03:41.120 --> 0:03:45.040 failed at that time. Yeah. Now, a lot of what 0:03:45.120 --> 0:03:47.480 I read about the early days of a t M 0:03:47.600 --> 0:03:51.360 s UM, they weren't a t M s. They didn't 0:03:51.360 --> 0:03:56.520 function like today's machines do. UM. In some cases, you 0:03:56.560 --> 0:03:59.720 needed a special card that wasn't actually tied to your 0:03:59.760 --> 0:04:01.920 your bank account. In fact, a lot of them used 0:04:01.920 --> 0:04:05.240 credit cards instead UM. For a long time credit cards 0:04:05.280 --> 0:04:09.800 will look down upon UM. But some of them use 0:04:09.880 --> 0:04:13.280 special vouchers or coins, yes, and a token. Yeah. And 0:04:13.280 --> 0:04:15.600 in Britain you had to UH on one of the 0:04:15.600 --> 0:04:18.240 early trials, you had to go inside and get a voucher. 0:04:18.360 --> 0:04:20.560 You would get a ten pound voucher. So if you 0:04:20.560 --> 0:04:23.080 wanted fifty pounds, you have to get five vouchers. That 0:04:23.160 --> 0:04:25.200 would you take outside of the machine, which raises the 0:04:25.320 --> 0:04:28.159 question why would you not just go and withdraw the 0:04:28.200 --> 0:04:30.839 money directly while you're there, unless, of course, you just 0:04:30.880 --> 0:04:34.160 wanted the convenience of being able to get at ten 0:04:34.240 --> 0:04:36.479 pounds at any given time in the future. And I 0:04:36.520 --> 0:04:39.360 guess that's the argument you'd have to make, Like, instead 0:04:39.400 --> 0:04:42.479 of walking out the bank with fifty pounds, which you 0:04:42.480 --> 0:04:44.479 know you may or may not need at that time, 0:04:44.520 --> 0:04:48.320 you could have uh five ten pound vouchers, and then 0:04:49.160 --> 0:04:51.719 as the as you go about your business throughout the 0:04:51.760 --> 0:04:55.719 coming days, you realize, oh, I need some more walking 0:04:55.760 --> 0:04:59.440 around money or getting about money, as I like to say, 0:05:00.120 --> 0:05:01.600 you would go and use one of those vouchers to 0:05:01.600 --> 0:05:04.279 get some more money out, but it did seem to 0:05:04.839 --> 0:05:09.400 decrease the convenience factor of the automated teller machine somewhat. 0:05:09.600 --> 0:05:12.920 But yeah, in this case, you wouldn't need a card 0:05:13.080 --> 0:05:15.200 with stuff and coded on it. You would just need 0:05:15.240 --> 0:05:17.640 your voucher to put in and then it would spit 0:05:17.680 --> 0:05:21.080 money out. It became like a money vending machine. Yeah. Yeah. 0:05:21.600 --> 0:05:24.520 And uh in n in Britain there was a several 0:05:24.560 --> 0:05:28.120 banks used a device UM that would use a card, 0:05:28.720 --> 0:05:31.840 but not a card that you always carried with you. 0:05:32.080 --> 0:05:34.120 It basically worked like the voucher. You'd stick the card 0:05:34.160 --> 0:05:36.560 in the machine, you get your money out in the 0:05:36.600 --> 0:05:39.240 machine would keep your card, which is kind of a 0:05:39.240 --> 0:05:42.279 pain in the neck. Yeah, it's kind of what happens 0:05:42.320 --> 0:05:44.640 to you now when your machine eats your card and 0:05:44.800 --> 0:05:47.800 uh yeah, I've had that happen too. That's not a 0:05:47.839 --> 0:05:51.400 good feeling, is it, um, Yeah, except this time in 0:05:51.440 --> 0:05:53.479 this case we're talking about it doing it on purpose. 0:05:54.120 --> 0:05:57.080 Uh yeah. So some of the other players in this space, 0:05:57.200 --> 0:05:59.800 and this mainly the real development of a t M 0:05:59.839 --> 0:06:03.359 S yawned. The early ninety nine example took place in 0:06:03.360 --> 0:06:07.880 the sixties, so you had people like James Goodfellow who 0:06:08.160 --> 0:06:10.400 he secured a patent on an A t M like 0:06:10.680 --> 0:06:13.080 machine in nineteen sixty six. He also came up with 0:06:13.080 --> 0:06:16.200 the idea of storing a personal identification number on a 0:06:16.279 --> 0:06:18.839 magnetic strip that would be printed on the back of 0:06:18.880 --> 0:06:21.680 a card, so that would become the A t M 0:06:21.720 --> 0:06:25.560 card eventually. Uh. They had also John D. White who 0:06:25.680 --> 0:06:28.719 invented a free standing automated teller machine. A lot of 0:06:28.720 --> 0:06:32.200 these other machines were built into the corner of a building. 0:06:32.320 --> 0:06:35.600 It was actually part of a larger structure. UM. This 0:06:35.720 --> 0:06:39.760 was more of a free standing UM machine. Uh. And 0:06:39.800 --> 0:06:43.080 then there's John Shepherd Baron, who I think I think 0:06:43.400 --> 0:06:46.599 most sources I saw credited him as the true father 0:06:46.800 --> 0:06:49.880 of the a t M. Yeah, John Shepherd Baron, because 0:06:50.480 --> 0:06:53.920 he was the guy who created the first real fully 0:06:53.960 --> 0:06:59.400 electronic automated teller machine and uh, and the very first 0:06:59.400 --> 0:07:03.120 one wasn't stalled in Barclays Bank in London in nineteen 0:07:03.200 --> 0:07:09.280 sixty seven. But you also had Don Wetzel. Now he 0:07:09.400 --> 0:07:12.720 was working in America and his machines started coming out 0:07:12.760 --> 0:07:16.080 around nineteen sixty eight, and he was known to have 0:07:16.560 --> 0:07:20.440 worked at least in part on Shepherd Baron's work as well. 0:07:20.520 --> 0:07:23.840 He kind of took Shepherd Baron's work and then uh 0:07:24.400 --> 0:07:27.280 change things like enhanced things and drop some things and 0:07:27.520 --> 0:07:30.679 included other things. So uh, Sora used as a launching 0:07:30.720 --> 0:07:33.320 point for his own work. So you get a lot 0:07:33.360 --> 0:07:36.880 of conflicting information about who is really the inventor of 0:07:36.920 --> 0:07:38.360 the A t M. I think part of it depends 0:07:38.400 --> 0:07:41.040 on where you're from. If you're from England, then it's 0:07:41.080 --> 0:07:46.640 John Shepherd Baron, Yeah, and uh in UM, the National 0:07:46.720 --> 0:07:51.520 Museum of American History, the Smithsonian recognized wet cell Um 0:07:51.600 --> 0:07:55.720 and his company Docutel, which was a baggage handling company UM, 0:07:55.760 --> 0:07:59.440 as the people who created the A t M. So 0:08:00.880 --> 0:08:02.720 it's yeah, I guess. And like I said, it all 0:08:02.720 --> 0:08:05.880 depends on who you ask, sort of like television, yeah, 0:08:06.000 --> 0:08:11.040 or radio. Yeah, they're like many other inventions. There's uh 0:08:11.440 --> 0:08:14.000 the story. The real story is far more complicated than 0:08:14.080 --> 0:08:18.080 just a factoid that you'll find in a history book. Yeah. Now, 0:08:19.240 --> 0:08:22.720 I was gonna say. Now, even though in the sixties, 0:08:23.240 --> 0:08:26.480 UM A t m s became a lot more common, 0:08:26.640 --> 0:08:31.720 banks started as uh including them as part of their services. UM. 0:08:31.960 --> 0:08:34.520 As a matter of fact, Uh, the Fortune article I 0:08:34.559 --> 0:08:40.120 read by Ellen Florian Um and uh. Doris Burke and 0:08:40.200 --> 0:08:44.560 Jenny Merrow basically was saying that they quoted a chemical 0:08:44.640 --> 0:08:48.880 bank advertisement and said, um, on September two, our bank 0:08:48.920 --> 0:08:51.200 will open at nine o'clock and we'll never close again. 0:08:51.800 --> 0:08:54.160 And that was the Rockville Center branch at ten North 0:08:54.240 --> 0:08:56.920 Village Avenue on Long Island. Yeah. The idea being that, 0:08:57.040 --> 0:08:59.760 of course, you could access your account at any time 0:08:59.760 --> 0:09:03.360 in withdrawals or transfers or whatever without having to go 0:09:03.440 --> 0:09:07.199 into the bank. Because of course, the reason why people 0:09:07.240 --> 0:09:09.720 were coming up with this in the first place was 0:09:09.760 --> 0:09:16.679 for convenience, because bank hours are notoriously um short. Yeah, 0:09:17.920 --> 0:09:21.520 that will people talk about bankers hours, where you know, 0:09:21.760 --> 0:09:23.640 in order to actually go and visit the bank, you 0:09:23.720 --> 0:09:26.679 might have to take time of your work day in 0:09:26.760 --> 0:09:28.120 order to you know, and then you have to go 0:09:28.240 --> 0:09:31.080 inside a bank and stand in line. See for some 0:09:31.160 --> 0:09:33.440 of our listeners, this is going to sound completely foreign 0:09:33.480 --> 0:09:36.840 to them because apart from maybe opening up a bank 0:09:36.840 --> 0:09:39.320 account or perhaps going in for a loan or something 0:09:39.360 --> 0:09:42.200 like that, you just don't have to do that anymore. Yeah, 0:09:42.200 --> 0:09:43.439 I mean, if you want to do the day to 0:09:43.520 --> 0:09:46.080 day stuff, depositing a check, finding out how much money 0:09:46.120 --> 0:09:49.520 you have in the bank making withdrawal, maybe even transferring 0:09:49.520 --> 0:09:51.360 money between accounts. You can do all that in an 0:09:51.360 --> 0:09:53.040 a t M. Yea. In some cases you can do 0:09:53.120 --> 0:09:56.319 some of that through online banking as well. So we've 0:09:56.400 --> 0:09:59.800 we've almost completely eliminated the need to go into a 0:10:00.000 --> 0:10:03.599 pysical space. But back in the day, it used to 0:10:03.640 --> 0:10:05.680 be that if you wanted to do anything to do 0:10:05.840 --> 0:10:08.320 with your money, you had to go and stand in 0:10:08.400 --> 0:10:10.280 line and wait to talk to a teller and then 0:10:10.360 --> 0:10:13.760 they pull up your records and you do all that 0:10:13.840 --> 0:10:16.960 in person, face to face. And actually in the sixties, 0:10:17.000 --> 0:10:22.160 back when uh, back when these were launching again, the 0:10:22.200 --> 0:10:26.040 people weren't flocking to them immediately. There were In fact, 0:10:26.080 --> 0:10:28.680 some banks were a little skeptical that people would ever 0:10:29.120 --> 0:10:32.160 want to interact with a machine as opposed to a human. 0:10:32.559 --> 0:10:35.640 They thought that the human interaction was a key component 0:10:35.800 --> 0:10:39.280 of the banking process. And it really wasn't until the 0:10:39.320 --> 0:10:43.520 eighties that a t M s started to truly take off. Well, 0:10:44.480 --> 0:10:49.120 the Fortune article actually has a particular event that they 0:10:49.160 --> 0:10:52.240 credit with the takeoff of the a t M and 0:10:52.320 --> 0:10:55.000 what might that be. Well, as it turns out, it 0:10:55.160 --> 0:10:59.679 took Mother Nature's involvement to spur people to use the 0:10:59.720 --> 0:11:01.599 A T M. According to them, it's not nice to 0:11:01.640 --> 0:11:05.360 fool mother nature. No, we know what side of the 0:11:05.360 --> 0:11:12.079 bread your butter. Never mind. Anyway, in January in New 0:11:12.120 --> 0:11:17.400 York they got seventeen inches of snow, which slowed business 0:11:17.440 --> 0:11:19.800 to a crawl because a lot of places couldn't open. 0:11:20.640 --> 0:11:25.239 And they said, um, again this is citing the Fortune article. Um. 0:11:25.320 --> 0:11:30.000 There was a commercial that City Bank released saying, um, 0:11:30.040 --> 0:11:33.360 you know, hey, you can use these machines anytime, whether 0:11:33.400 --> 0:11:36.160 the bank's open or not. Uh. And they had a 0:11:36.200 --> 0:11:41.640 new tagline, the City Never sleeps um, and it said, um, 0:11:41.880 --> 0:11:46.040 see what they did there. The machines used increased during 0:11:46.080 --> 0:11:51.040 the storm, and uh. City banks market share in New 0:11:51.080 --> 0:11:54.880 York City deposits had doubled, and so the rest of 0:11:54.920 --> 0:11:59.800 the banks moved to catch up, and that basically started 0:11:59.800 --> 0:12:03.040 to evolution, at least in New York. Um. Of course 0:12:03.080 --> 0:12:06.560 that's a lot of people, so that that can affect things. 0:12:06.559 --> 0:12:08.400 And people go in there and see how people are 0:12:08.480 --> 0:12:10.640 using the A t M s and they go back home, 0:12:11.640 --> 0:12:15.199 you know yep. Yeah, And like I said, in the eighties, 0:12:15.200 --> 0:12:17.520 that really started to take off. So I guess now 0:12:17.559 --> 0:12:20.320 we can finally start getting into what makes up an 0:12:20.320 --> 0:12:23.800 A t M and how they how they actually work. Uh. Now, 0:12:23.880 --> 0:12:27.200 part of this involves the way that we access the 0:12:27.280 --> 0:12:29.400 A t M s uh. And and not just with 0:12:29.480 --> 0:12:32.840 the key the keypad or the touch screen, depending upon 0:12:33.360 --> 0:12:36.959 the model that you're using, but the card you have, 0:12:37.200 --> 0:12:40.120 your A t M card, whatever you're using to access 0:12:40.160 --> 0:12:42.040 the A t M. And there are variations on this, 0:12:42.160 --> 0:12:47.439 but all of them have a magnetic stripe or mag 0:12:47.640 --> 0:12:51.920 stripe on them. And uh, you might say, well, what 0:12:52.000 --> 0:12:54.280 the heck is a magnetic stripe? Well, it's kind of 0:12:54.280 --> 0:12:57.960 what sounds like it's a uh, it's it's a plastic 0:12:58.040 --> 0:13:01.000 like film. It's on the back of your card that 0:13:01.280 --> 0:13:06.120 has lots and lots and lots of tiny iron based 0:13:06.400 --> 0:13:11.000 magnetic particles. Yes, as a matter of fact, it's very similar, 0:13:11.320 --> 0:13:15.079 if not nearly identical to the material that they used 0:13:15.080 --> 0:13:19.520 to use in recording tape cassette tape cassette tapes, real 0:13:19.559 --> 0:13:23.440 to real tapes, eight track tapes, also floppy disks. Yeah, 0:13:23.559 --> 0:13:26.040 the material inside there, I mean, that's even most of 0:13:26.040 --> 0:13:28.440 them are even the same brownish color. Right. And the 0:13:28.480 --> 0:13:31.320 way you right to this strip is that you you 0:13:31.440 --> 0:13:35.880 magnetize these little particles. Each of the particles acts like 0:13:35.960 --> 0:13:39.400 its own bar magnet, right, and you magnetize them to 0:13:39.440 --> 0:13:44.360 either have a north or south pole direction on each particle, 0:13:44.720 --> 0:13:50.439 and so that's like bits, zeros and ones. So by 0:13:50.720 --> 0:13:54.000 creating them in either a north or south pole direction, 0:13:54.720 --> 0:13:57.679 and then you you've got thousands of these, right, and 0:13:57.760 --> 0:14:01.520 in one strip. You can in code information that way, 0:14:01.800 --> 0:14:05.280 and that information is going to have things like the 0:14:05.280 --> 0:14:08.640 the account number on it, so that it has you know, 0:14:08.640 --> 0:14:12.360 it's able to say this card belongs to this account. Uh. 0:14:12.360 --> 0:14:15.240 It may also have the pin on their the personal 0:14:15.280 --> 0:14:19.200 identification number, so that you can have that as sort 0:14:19.240 --> 0:14:22.200 of a key pass entrigue. You know, as long as 0:14:22.240 --> 0:14:26.240 the pen that you enter into the a t M 0:14:26.400 --> 0:14:29.040 matches the one that's on the card and in the account, 0:14:29.360 --> 0:14:32.000 as long as all three of those are are the same, 0:14:32.640 --> 0:14:36.440 then you'll be able to access your information. So that's 0:14:36.520 --> 0:14:39.440 on your card, which means of course that the A 0:14:39.560 --> 0:14:43.880 t M has to have some sort of card reader involved, 0:14:44.080 --> 0:14:46.640 which you know, it's a magnetic stripe reader that you know, 0:14:47.040 --> 0:14:49.760 depending on the style of the A t M, it 0:14:49.800 --> 0:14:52.160 maybe one where you put your card in and it 0:14:52.280 --> 0:14:54.840 sucks it into the machine. And you hope when your 0:14:54.840 --> 0:14:58.040 transactions over it will spit it back out again. Or 0:14:58.160 --> 0:15:00.760 what I see most commonly now are the kinds where 0:15:00.760 --> 0:15:03.560 you swipe it. You either have a vertical swipe where 0:15:03.560 --> 0:15:06.080 you just swipe the card down the side of a 0:15:06.120 --> 0:15:08.840 little reader, or you inserted into a slot and pull 0:15:08.880 --> 0:15:11.840 it back out again quickly. And in either case, the 0:15:12.120 --> 0:15:15.000 what happens is those little magnets go past a detector 0:15:15.880 --> 0:15:18.840 because the magnets are in motion, and the detector detects 0:15:18.880 --> 0:15:21.640 the difference of the magnetism on each of those little 0:15:21.640 --> 0:15:25.200 bars and can read that as whatever the information is. Yeah, 0:15:25.280 --> 0:15:28.960 so all the information that's printed on the card, um 0:15:29.000 --> 0:15:31.080 the number that's embossed in the card in your name. 0:15:31.320 --> 0:15:33.440 The machine is not reading or looking at any of 0:15:33.440 --> 0:15:37.160 that stuff. It's taking everything from the magnetic stripe. Which 0:15:37.480 --> 0:15:42.160 is why you should not put your your credit cards 0:15:42.240 --> 0:15:44.400 or a T M S cards or anything like that 0:15:44.800 --> 0:15:49.600 near powerful magnets, right because that could actually realign those 0:15:49.640 --> 0:15:53.240 little magnetic particles inside the film. Some people call it 0:15:53.280 --> 0:15:56.200 de magnetizing, but really it's just realigning those polls so 0:15:56.400 --> 0:15:59.400 it no longer it might spout out gibberish. Now when 0:15:59.440 --> 0:16:02.400 you when you swipe it or anyway it's not going 0:16:02.480 --> 0:16:05.640 to correspond with your information and suddenly your card doesn't 0:16:05.640 --> 0:16:08.360 work anymore. Yeah, you can also find the same thing 0:16:08.400 --> 0:16:10.240 if you've used it too much or if the magnetic 0:16:10.240 --> 0:16:14.280 stripe gets damaged in some way. Um. You know, some 0:16:14.280 --> 0:16:17.080 people say the eel skin wallets. Yeah, I hear that 0:16:17.160 --> 0:16:18.760 a lot, because you know, and there are a lot 0:16:18.760 --> 0:16:21.880 of different theories about. Actually the theory I've heard that 0:16:22.160 --> 0:16:24.240 seems to explain it the most, or it seems to 0:16:24.280 --> 0:16:27.880 be the most logical to me. Eel skin wallets. Some 0:16:27.920 --> 0:16:30.800 people claim came from electric eels and that it somehow 0:16:30.840 --> 0:16:33.720 has some sort of electric impulse still stored in it 0:16:33.800 --> 0:16:37.800 and that's what's screwing up the cards. Count me skeptical 0:16:37.840 --> 0:16:40.640 on that one exactly. But a lot of these have 0:16:41.000 --> 0:16:44.680 a magnetic clasp so that when you close it, it 0:16:45.320 --> 0:16:49.280 remains closed. And the magnetic clasp depending on how your 0:16:49.320 --> 0:16:53.000 card is, how you're storing your card in the wallet. Uh, 0:16:53.080 --> 0:16:55.200 the stripe might be close enough to the magnetic class 0:16:55.240 --> 0:16:59.480 that the magnetic class is is realigning those magnetic particles 0:16:59.480 --> 0:17:04.000 in the film, So don't do that. Well. Yeah, so 0:17:04.119 --> 0:17:07.240 once that, uh, you're you have the magnetic card reader. 0:17:07.400 --> 0:17:10.520 We've talked about that and and basically the information is 0:17:11.000 --> 0:17:16.960 going into a computer. Yeah, very basic CPU inside every 0:17:17.080 --> 0:17:18.679 a t M and in fact a lot of them 0:17:18.760 --> 0:17:21.919 run Windows. Yeah, which we'll get to. The earlier A 0:17:21.960 --> 0:17:25.320 t M s were all proprietary. Oh yeah, Now that 0:17:25.400 --> 0:17:29.840 was when if you had an account with UM Bank something, 0:17:30.040 --> 0:17:32.040 you know, First National Bank, and you wanted to go 0:17:32.119 --> 0:17:35.239 to Second National Bank, you were on your own. You 0:17:35.280 --> 0:17:36.920 have to find an a t M for with First 0:17:37.000 --> 0:17:39.320 National Bank or you are out of luck because your 0:17:39.320 --> 0:17:44.200 card wouldn't work the system wasn't compatible. However, it also 0:17:44.320 --> 0:17:47.160 meant that those A t M s had the benefit 0:17:47.240 --> 0:17:52.639 of security through obscurity. That's true because would be thief 0:17:53.280 --> 0:17:56.480 would have to focus on a particular type of a 0:17:56.600 --> 0:17:59.920 t M, and the things that might work on the 0:18:00.000 --> 0:18:02.159 A t M would not necessarily work on a t 0:18:02.320 --> 0:18:05.919 M s for other banks, So it's somewhat limited the 0:18:06.000 --> 0:18:09.560 liability and the vulnerability of those machines. Once the machine 0:18:09.600 --> 0:18:13.159 started to move toward more computer based operating systems like 0:18:13.240 --> 0:18:17.080 Lenox and Windows, then you opened up new opportunities for 0:18:17.160 --> 0:18:20.280 thieves to target specific parts of the A t M 0:18:20.359 --> 0:18:23.800 infrastructure and uh, and made it in some ways more 0:18:23.960 --> 0:18:28.280 vulnerable than the older models. Now I say that, but 0:18:28.320 --> 0:18:31.520 the truth is you can actually find these older model 0:18:31.560 --> 0:18:34.960 A t M s on plenty of sites like eBay 0:18:35.359 --> 0:18:37.359 where you could buy an A t M if you 0:18:37.400 --> 0:18:41.359 wanted to, and if your goal was to deconstruct, to 0:18:41.520 --> 0:18:43.480 hack this a t M so you would learn how 0:18:43.520 --> 0:18:47.040 it works, you could potentially find vulnerabilities in that system 0:18:47.080 --> 0:18:51.480 to exploit. Don't do that, it's illegal. You don't want 0:18:51.520 --> 0:18:55.240 to do that, but there that That is one of 0:18:55.240 --> 0:18:58.040 the downsides to the old systems too, is that you know, 0:18:58.280 --> 0:19:01.000 it's not like these things or it's not like you 0:19:01.040 --> 0:19:03.320 had to have a license to own one. You know, 0:19:03.840 --> 0:19:05.760 you just had to buy one. So you just had 0:19:05.800 --> 0:19:07.800 to find someone willing to sell one and then you 0:19:07.800 --> 0:19:11.320 could buy it. So but yes, you've got your CPU 0:19:11.440 --> 0:19:14.159 in there. Uh. However, the A t M is not 0:19:14.280 --> 0:19:19.400 its own standalone UM machine. Like it's not that it's 0:19:19.560 --> 0:19:23.040 it's disconnected from the outside world. No, but if you 0:19:23.119 --> 0:19:25.160 if you think about it, it's it's very much like 0:19:25.400 --> 0:19:28.720 the computer that sits on your desktop or laptop. So 0:19:28.960 --> 0:19:32.959 you've got a screen for a customer, uh. For basically 0:19:33.040 --> 0:19:35.720 is an output device. You've got a printer that prints, 0:19:37.040 --> 0:19:39.080 you've got an input device or maybe two. You might 0:19:39.119 --> 0:19:40.840 have a touch screen, you might have a key pad 0:19:41.720 --> 0:19:45.480 to type in members or both, um and hopefully both 0:19:45.520 --> 0:19:49.520 for those of people who have vision impairments, right, right. 0:19:49.920 --> 0:19:53.520 And then you also have uh, basically an internet connection. 0:19:54.000 --> 0:19:56.800 It may be on a private network. It might be 0:19:56.840 --> 0:20:01.680 some kind yeah, very, it might be a closed private connection, 0:20:01.760 --> 0:20:06.639 but it goes to a whatever bank is behind that 0:20:06.720 --> 0:20:10.000 particular a t M. Yeah, it'll have a network connection 0:20:10.000 --> 0:20:13.600 of some type to communicate with a server somewhere that 0:20:13.680 --> 0:20:16.919 has account information on it. So if you have three 0:20:17.520 --> 0:20:20.679 in your account you want to withdraw twenty dollars, it 0:20:20.720 --> 0:20:24.400 will say, okay, well Jonathan's got three, so I can 0:20:24.440 --> 0:20:27.960 give him twenty dollars. And he's withdrawn twenty dollars, so 0:20:28.240 --> 0:20:30.240 it makes a note of that in the account, so 0:20:30.280 --> 0:20:33.000 it says, now he has two left. Yeah. The way 0:20:33.040 --> 0:20:35.159 this works is that so you could think of the 0:20:35.560 --> 0:20:38.160 especially the older a t M s Um, we're really 0:20:38.200 --> 0:20:40.960 thin clients. Yeah they were, they were. You know. The 0:20:40.960 --> 0:20:43.720 the it had essentially enough power for it to read 0:20:43.800 --> 0:20:49.400 the strip to uh uh two allow you to input 0:20:49.440 --> 0:20:53.480 your pen and to display the information. But then what 0:20:53.520 --> 0:20:56.480 it would do is the terminal that you're using would 0:20:56.600 --> 0:21:00.080 connect to a host processor. Now this would be a 0:21:00.160 --> 0:21:05.560 computer that belongs to whatever financial institution again is owns 0:21:05.640 --> 0:21:09.160 that a t M. Now, if that's your bank, then 0:21:09.200 --> 0:21:11.680 that's pretty much where this ends. It goes, it refers 0:21:11.720 --> 0:21:15.080 to your account. Make it confirms that you that you 0:21:15.119 --> 0:21:16.840 are who you say you are, and that at least 0:21:16.840 --> 0:21:19.920 according to your pen and that you have the funds 0:21:19.960 --> 0:21:22.560 that you require in order for you to get whatever 0:21:22.600 --> 0:21:24.560 it is you're asking. So again like in your example, 0:21:24.600 --> 0:21:27.719 that you have at least twenty dollars you can withdraw um. 0:21:28.800 --> 0:21:31.600 And then it will send the information back to the 0:21:31.640 --> 0:21:35.080 machine that you're at and either confirmed that it can 0:21:35.200 --> 0:21:38.880 dispense the cash or deny it, and then the machine 0:21:38.960 --> 0:21:42.359 does whatever it's supposed to do. Uh, if your bank 0:21:42.480 --> 0:21:44.960 is a different bank, then what happens is the it 0:21:44.960 --> 0:21:47.320 will go to the host processor. The host processor will 0:21:47.359 --> 0:21:52.160 then route that request to the specific financial institution that 0:21:52.359 --> 0:21:56.359 you belong to and get the permission there, and then 0:21:56.920 --> 0:22:01.919 your bank essentially will wirelessly trays for funds to the 0:22:01.960 --> 0:22:05.439 financial institution and charge of that a t M. And 0:22:05.480 --> 0:22:09.240 then that financial institution will allow the a t M 0:22:09.280 --> 0:22:12.320 to dispense cash because the money has been you know, 0:22:12.359 --> 0:22:15.119 it's not losing money, it's had the wireless transfer from 0:22:15.240 --> 0:22:18.920 your bank. This is also why you'll find a lot 0:22:18.920 --> 0:22:22.960 of a t M s have those fees on them, Yes, 0:22:23.160 --> 0:22:27.480 the usage fees, because otherwise, you know, it's just an 0:22:27.480 --> 0:22:29.879 access thing that you know, banks are doing out of 0:22:29.920 --> 0:22:32.879 the goodness of their hearts. But these are bankers. We 0:22:33.000 --> 0:22:36.800 know they don't have that, right bankers and lawyers right, 0:22:37.800 --> 0:22:41.160 So um, hey, I I watched the documentary Christmas Caroll. 0:22:41.320 --> 0:22:45.200 I know how this works. Uh so, So in order 0:22:45.240 --> 0:22:47.280 to make money off of these transactions, that's why you 0:22:47.280 --> 0:22:49.960 have that usage fee, because you know it's going to 0:22:50.040 --> 0:22:53.000 charge you for the whole process of having the money 0:22:53.000 --> 0:22:57.000 transferred from your financial institution to the bank. And depending 0:22:57.040 --> 0:23:00.560 upon the way that the different financial institution and operate, 0:23:00.640 --> 0:23:03.520 you might actually have multiple fees on one transaction, which 0:23:03.560 --> 0:23:06.560