WEBVTT - TechStuff Classic: TechStuff withdraws from an ATM 0:00:04.120 --> 0:00:07.160 Get in touch with technology with tech Stuff from how 0:00:07.200 --> 0:00:14.080 stuff works dot com. Hey there, and welcome to tech Stuff. 0:00:14.120 --> 0:00:16.479 I'm your host, Jonathan Strickland. I'm an executive producer and 0:00:16.480 --> 0:00:19.440 i love all things tech and I'm a little short 0:00:19.560 --> 0:00:22.200 on cash at the moment. But no fear, because it's 0:00:22.239 --> 0:00:25.280 time for a classic episode and Chris Poulette and I 0:00:25.360 --> 0:00:28.200 are about to go and visit an a t M. Yes, 0:00:28.320 --> 0:00:31.360 this classic episode is all about a t M S 0:00:31.960 --> 0:00:34.559 And I'm pretty sure I say a t M machine 0:00:34.680 --> 0:00:37.479 and pen number a billion times in this so if 0:00:37.479 --> 0:00:42.080 that bugs you, my bad. But otherwise enjoy this classic episode, 0:00:42.080 --> 0:00:46.880 which originally published on November two thousand eleven. They say 0:00:46.880 --> 0:00:50.760 the best things in life are free. You're such a card. 0:00:52.360 --> 0:00:58.240 Today we're going Today we're gonna talk about automated teller 0:00:58.360 --> 0:01:02.160 machines or a t M senes. Oh, we'll also be 0:01:02.240 --> 0:01:07.200 talking about personal identification numbers or pen numbers. Five people 0:01:07.280 --> 0:01:09.720 just paused the podcast so that they could write us 0:01:09.760 --> 0:01:12.720 an angry email about the redundancy. They probably also went 0:01:12.720 --> 0:01:16.800 ahead and unsubscribed. Possibly yeah, but we in case, just 0:01:16.880 --> 0:01:18.720 for you people who have those pet peeves, and I 0:01:18.840 --> 0:01:22.280 totally understand. I'm not sharing. I share those pet peeves. 0:01:22.319 --> 0:01:25.360 I am not criticizing. You may very well hear me 0:01:25.480 --> 0:01:30.080 say a t M machine and or PEN number at 0:01:30.160 --> 0:01:34.720 least once in this podcast as a way and and 0:01:34.840 --> 0:01:37.440 not not in a way to needle you. Just that's 0:01:38.000 --> 0:01:41.080 it's it's stamped in my brain that way. Well, pen 0:01:41.200 --> 0:01:44.960 number two is also a little bit more useful than 0:01:45.000 --> 0:01:48.280 a t M machine since pen is also a pin. 0:01:48.440 --> 0:01:53.440 Do you have your pen? Yeah? Right, no number exactly? 0:01:53.520 --> 0:01:55.560 Do you have your personal identification numbers? So, yes, we're 0:01:55.560 --> 0:01:58.600 talking about a t M S today, and we've had 0:01:58.640 --> 0:02:00.360 a few people asked us about how a t m 0:02:00.440 --> 0:02:02.720 S work. We assume it was all on the up 0:02:02.720 --> 0:02:06.680 and up, not to find out how they work so 0:02:06.720 --> 0:02:10.000 that you can exploit them. I did find out an 0:02:10.080 --> 0:02:13.680 article about how to hack into one. Wow. Well, and 0:02:14.040 --> 0:02:16.480 that gets a little complicated. We'll talk about that. Why 0:02:16.600 --> 0:02:19.040 that is in the case, Um, yeah, because it really 0:02:19.040 --> 0:02:21.799 does depend. But first let's talk about how a t 0:02:22.040 --> 0:02:27.560 M S came to be. That's somewhat in dispute. Yes, um, 0:02:27.600 --> 0:02:32.520 there there are multiple people who were inventing things that 0:02:32.680 --> 0:02:35.519 resemble what a t M S are today in different 0:02:35.520 --> 0:02:39.040 parts of the world around the same time, although the 0:02:39.080 --> 0:02:42.680 earliest one I could find was from a Mr. Luther 0:02:42.960 --> 0:02:46.720 sim Jean Yes who was born in Turkey. It was 0:02:46.760 --> 0:02:50.640 a son of Armenians who were sadly his family was 0:02:50.639 --> 0:02:55.000 was broken up during a genocide in the early twentieth century, 0:02:55.240 --> 0:03:00.000 and he uh. He eventually immigrated to the United States 0:03:00.600 --> 0:03:03.520 and he came up with an idea that eventually he 0:03:03.560 --> 0:03:07.239 called the bank matic Automated teller machine. So that's where 0:03:07.280 --> 0:03:10.480 we get a t M. That's he's the one who 0:03:10.639 --> 0:03:14.040 came up with the term. And this was around nineteen nine. 0:03:15.040 --> 0:03:18.400 But this was it doesn't really resemble the way a 0:03:18.520 --> 0:03:21.880 t M s look and and act now, But it 0:03:21.960 --> 0:03:24.840 was an idea of a of an of machine that 0:03:24.840 --> 0:03:28.400 would dispense money. And it was run for a six 0:03:28.440 --> 0:03:32.359 month trial at the City Bank of New York, which 0:03:32.400 --> 0:03:36.760 we now call City Bank yes uh. And after the 0:03:36.800 --> 0:03:40.160 six months the trial ended and City Bank decided not 0:03:40.360 --> 0:03:44.920 to extend the trial, not to implement it, and um, 0:03:44.960 --> 0:03:47.920 at least according to one source I read, the reason 0:03:48.120 --> 0:03:49.760 behind it was that it just didn't get a lot 0:03:49.800 --> 0:03:54.200 of traction the people. People just didn't want to use 0:03:54.200 --> 0:03:57.800 a machine to interact with their bank accounts. They preferred 0:03:57.840 --> 0:04:00.680 to have a person to person interaction in a bank 0:04:01.320 --> 0:04:03.440 and um, apparently the people who were using it were 0:04:03.480 --> 0:04:07.680 a bunch of air dwells. Yeah, I read about that too. Basically, 0:04:07.720 --> 0:04:10.760 they they the idea of being that the only people 0:04:10.800 --> 0:04:14.120 who would not want to talk to a teller are 0:04:14.120 --> 0:04:16.200 the people who would prefer that you didn't know they 0:04:16.240 --> 0:04:18.760 were depositing or withdrawing money in the first place. Yeah, 0:04:18.800 --> 0:04:22.320 so we're talking about people with ill gotten game gamblers 0:04:22.360 --> 0:04:27.159 for example, places where gambling was not legal, and um, 0:04:27.200 --> 0:04:29.159 you know, you might not want to have to answer 0:04:29.200 --> 0:04:31.840 tricky questions like how did you come upon this sum 0:04:31.880 --> 0:04:36.400 of money, my good man? Yes, yes, exactly. So. Anyway, 0:04:36.400 --> 0:04:41.159 that was the first recorded incidents I could find of 0:04:41.279 --> 0:04:44.400 someone trying to create an a t M Yes, and 0:04:44.480 --> 0:04:48.280 again it was it was an interesting experiment that ultimately 0:04:48.920 --> 0:04:52.840 failed at that time. Yeah. Now, a lot of what 0:04:52.920 --> 0:04:57.040 I read about the early days of a t M S, UM, 0:04:57.080 --> 0:05:00.159 they weren't a t M S. They didn't function like 0:05:00.279 --> 0:05:04.840 today's machines do. UM. In some cases you needed a 0:05:04.880 --> 0:05:08.359 special card that wasn't actually tied to your your bank account. 0:05:08.400 --> 0:05:11.960 In fact, a lot of them used credit cards instead. UM. 0:05:11.960 --> 0:05:16.080 For a long time credit cards were looked down upon, UM, 0:05:16.120 --> 0:05:19.839 but some of them use special vouchers or coins. Yes 0:05:19.880 --> 0:05:23.040 and yeah, And in Britain you had to UH on 0:05:23.040 --> 0:05:25.240 one of the early trials, you had to go inside 0:05:25.240 --> 0:05:27.600 and get a voucher. You would get a ten pound voucher. 0:05:28.080 --> 0:05:29.719 So if you wanted fifty pounds, you have to get 0:05:29.760 --> 0:05:32.240 five vouchers. That would you take outside of the machine, 0:05:32.320 --> 0:05:35.080 Which raises the question why would you not just go 0:05:35.200 --> 0:05:38.360 and withdraw the money directly while you're there, unless, of course, 0:05:38.400 --> 0:05:41.400 you just wanted the convenience of being able to get 0:05:41.480 --> 0:05:44.080 at ten pounds at any given time in the future. 0:05:44.080 --> 0:05:46.760 And I guess that's the argument you'd have to make, Like, 0:05:46.800 --> 0:05:49.760 instead of walking out the bank with fifty pounds, which 0:05:50.200 --> 0:05:52.279 you know you may or may not need at that time, 0:05:52.320 --> 0:05:56.120 you could have uh five ten pound vouchers, and then 0:05:56.920 --> 0:05:59.520 as the as you go about your business throughout the 0:05:59.520 --> 0:06:03.120 coming day, as you realize, oh, I need some more 0:06:03.120 --> 0:06:06.760 walking around money or getting about money, as I like 0:06:06.880 --> 0:06:08.920 to say, you would go and use one of those 0:06:08.960 --> 0:06:11.640 vouchers to get some more money out. But it did 0:06:11.680 --> 0:06:16.359 seem to decrease the convenience factor of the automated teller 0:06:16.400 --> 0:06:19.000 machine somewhat. But yeah, in this case, you wouldn't need 0:06:20.240 --> 0:06:22.760 a card with stuff and coded on it. You would 0:06:22.760 --> 0:06:24.280 just need your voucher to put in and then it 0:06:24.320 --> 0:06:28.880 would spit money out. It became like a money vending machine. Yeah. Yeah, 0:06:29.360 --> 0:06:32.320 and uh in night in Britain there was a several 0:06:32.360 --> 0:06:35.920 banks use the device UM that would use a card, 0:06:36.520 --> 0:06:39.680 but not a card that you always carried with you. 0:06:39.880 --> 0:06:41.920 It basically worked like the voucher. You'd stick the card 0:06:41.920 --> 0:06:44.359 in the machine, you get your money out, and the 0:06:44.400 --> 0:06:47.000 machine would keep your card, which is kind of a 0:06:47.040 --> 0:06:50.080 pain in the neck. Yeah, it's kind of what happens 0:06:50.120 --> 0:06:53.800 to you now when your machine eats your card and uh, yeah, 0:06:53.800 --> 0:06:56.200 I've had that happen too. That's not a good feeling, 0:06:56.279 --> 0:06:59.640 is it, um, Yeah, except this time in this case 0:06:59.640 --> 0:07:02.680 we're talking about doing it on purpose. Uh yes. So 0:07:02.760 --> 0:07:05.240 some of the other players in this space, and this 0:07:05.480 --> 0:07:08.080 mainly the real development of a t M S beyond 0:07:08.160 --> 0:07:12.880 the early nineteen nine example took place in the sixties. 0:07:12.920 --> 0:07:16.560 So you had people like James Goodfellow, who he secured 0:07:16.600 --> 0:07:19.000 a patent on an a t M like machine in 0:07:19.080 --> 0:07:21.280 nineteen sixty six. He also came up with the idea 0:07:21.320 --> 0:07:25.120 of storing a personal identification number on a magnetic strip 0:07:25.200 --> 0:07:27.080 that would be printed on the back of a card, 0:07:27.720 --> 0:07:31.080 so that would become the A t M card eventually. Uh. 0:07:31.160 --> 0:07:34.360 They had also John D. White, who invented a free 0:07:34.400 --> 0:07:37.240 standing automated teller machine. A lot of these other machines 0:07:37.280 --> 0:07:40.320 were built into the corner of a building. It was 0:07:40.320 --> 0:07:43.960 actually part of a larger structure. Um. This was more 0:07:44.000 --> 0:07:47.760 of a free standing um A machine. Uh. And then 0:07:47.800 --> 0:07:51.480 there's John Shepherd Baron, who I think I think most 0:07:51.600 --> 0:07:54.720 sources I saw credited him as the true father of 0:07:54.760 --> 0:07:57.680 the A t M. Really, yeah, John Shepherd Baron, because 0:07:58.280 --> 0:08:01.680 he was the guy who created the first real fully 0:08:01.760 --> 0:08:07.200 electronic automated teller machine and uh, and the very first 0:08:07.200 --> 0:08:10.920 one was installed in Barclays Bank in London in nineteen 0:08:11.000 --> 0:08:16.400 sixty seven. But you also had Don wet Cell. Now 0:08:16.920 --> 0:08:20.400 he was working in America and his machine started coming 0:08:20.400 --> 0:08:23.720 out around nineteen sixty eight, and he was known to 0:08:23.800 --> 0:08:27.800 have worked at least in part on Shepherd Baron's work 0:08:27.880 --> 0:08:30.680 as well. He kind of took Shepherd Baron's work and 0:08:30.720 --> 0:08:34.480 then uh change things like enhanced things and drop some 0:08:34.600 --> 0:08:37.760 things and included other things, so uh sort of used 0:08:37.800 --> 0:08:40.640 as a launching point for his own work. So you 0:08:40.640 --> 0:08:44.080 get a lot of conflicting information about who is really 0:08:44.120 --> 0:08:45.640 the inventor of the A t M. I think part 0:08:45.640 --> 0:08:48.120 of it depends on where you're from. If you're from 0:08:48.120 --> 0:08:53.720 England and it's John Shepherd Baron, Yeah, and uh um 0:08:53.840 --> 0:08:57.720 the National Museum of American History, the Smithsonian recognized wet 0:08:57.760 --> 0:09:01.160 cell Um and this kind Penny Docutel, which was a 0:09:01.160 --> 0:09:06.280 baggage handling company UM as the people who created the 0:09:06.440 --> 0:09:10.040 A t M. So it's yeah, I guess you. Like 0:09:10.080 --> 0:09:11.840 I said, it all depends on who you ask, sort 0:09:11.840 --> 0:09:16.600 of like television, yeah, or radio. Yeah, they're like many 0:09:16.640 --> 0:09:20.640 other inventions. There's uh the story, the real story is 0:09:20.679 --> 0:09:23.640 far more complicated than just a factoid that you'll find 0:09:23.640 --> 0:09:28.280 in a history book. Yeah. Now, I was gonna say. Now, 0:09:28.880 --> 0:09:32.719 even though in the sixties, UM A t m s 0:09:32.760 --> 0:09:36.760 became a lot more common, banks started as uh including 0:09:36.800 --> 0:09:40.080 them as part of their services. UM. As a matter 0:09:40.120 --> 0:09:43.360 of fact, Uh, the Fortune article I read by Ellen 0:09:43.400 --> 0:09:49.520 Florian Um and uh Doris Burke and Jenny Murrow basically 0:09:49.840 --> 0:09:54.320 was saying that they quoted a chemical bank advertisement and 0:09:54.360 --> 0:09:57.240 said um on September two, our bank will open at 0:09:57.280 --> 0:09:59.920 nine o'clock and we'll never close again. And that was 0:10:00.080 --> 0:10:02.720 the Rockville Center branch at ten North Village Avenue on 0:10:02.760 --> 0:10:05.320 Long Island. Yeah. The idea being that, of course, you 0:10:05.360 --> 0:10:08.520 could access your account at any time and make withdrawals 0:10:08.640 --> 0:10:11.760 or transfers or whatever without having to go into the bank. 0:10:11.800 --> 0:10:15.560 Because of course, the reason why people are coming up 0:10:15.559 --> 0:10:18.880 with this in the first place was for convenience, because 0:10:18.920 --> 0:10:26.360 bank hours are notoriously um short. Yeah, that will people 0:10:26.400 --> 0:10:30.080 talk about bankers hours, where you know, in order to 0:10:30.080 --> 0:10:31.960 actually go and visit the bank, you might have to 0:10:32.000 --> 0:10:34.839 take time out of your work day in order to 0:10:34.920 --> 0:10:37.000 you know, and then you have to go inside a 0:10:37.040 --> 0:10:39.600 bank and stand in line. See for some of our listeners, 0:10:39.600 --> 0:10:42.000 this is going to sound completely foreign to them. Yeah, 0:10:42.160 --> 0:10:45.280 because apart from maybe opening up a bank account or 0:10:45.280 --> 0:10:47.480 perhaps going in for a loan or something like that, 0:10:47.920 --> 0:10:50.200 you just don't have to do that anymore. Yeah, I mean, 0:10:50.200 --> 0:10:51.800 if you want to do the day to day stuff, 0:10:51.800 --> 0:10:54.120 depositing a check, finding out how much money you have 0:10:54.160 --> 0:10:58.280 in the bank, making withdrawal, maybe even transferring money between accounts, 0:10:58.280 --> 0:10:59.840 you can do all that in an a t M. Yeah, 0:10:59.840 --> 0:11:01.839 it's some cases you can do some of that through 0:11:02.000 --> 0:11:06.280 online banking as well. So we've we've almost completely eliminated 0:11:06.320 --> 0:11:09.960 the need to go into a physical space. But back 0:11:09.960 --> 0:11:11.960 in the day, it used to be that if you 0:11:12.000 --> 0:11:15.080 wanted to do anything to do with your money, you 0:11:15.120 --> 0:11:16.840 had to go and stand in line and wait to 0:11:16.920 --> 0:11:18.959 talk to a teller and then they pull up your 0:11:19.000 --> 0:11:22.440 records and do you do all that in person, face 0:11:22.520 --> 0:11:25.559 to face. And actually in the sixties, back when uh, 0:11:25.679 --> 0:11:31.240 back when these were launching again, the people weren't flogging 0:11:31.280 --> 0:11:34.520 to them immediately. There were In fact, some banks were 0:11:34.640 --> 0:11:37.800 a little skeptical that people would ever want to interact 0:11:37.840 --> 0:11:40.760 with a machine as opposed to a human. They thought 0:11:40.800 --> 0:11:43.840 that the human interaction was a key component of the 0:11:43.880 --> 0:11:48.120 banking process. And it really wasn't until the eighties that 0:11:48.200 --> 0:11:51.320 A t M s started to truly take off. Well, 0:11:52.240 --> 0:11:56.920 the Fortune article actually has a particular event that they 0:11:56.960 --> 0:12:00.080 credit with the takeoff of the A t M And 0:12:00.160 --> 0:12:02.800 what might that be. Well, as it turns out, it 0:12:02.960 --> 0:12:07.520 took Mother Nature's involvement to spur people to use the 0:12:07.520 --> 0:12:09.400 A t M. According to them, it's not nice to 0:12:09.440 --> 0:12:13.280 fool Mother Nature. No, Chris and I will tell you 0:12:13.320 --> 0:12:15.000 more about A t M S in just a second, 0:12:15.000 --> 0:12:18.040 but first let's take a quick break to thank our sponsor. 0:12:25.640 --> 0:12:30.520 In January in New York they got seventeen inches of snow, 0:12:31.400 --> 0:12:34.800 which slowed business to a crawl because a lot of 0:12:34.800 --> 0:12:38.920 places couldn't open. And they said, um, again this is 0:12:38.960 --> 0:12:42.360 citing the Fortune article. Um. There was a commercial that 0:12:42.520 --> 0:12:46.800 City Bank released saying, UM, you know, hey, you can 0:12:46.920 --> 0:12:51.360 use these machines anytime, whether the bank's open or not. Uh. 0:12:51.400 --> 0:12:56.800 And they had a new tagline, the City Never sleeps um, 0:12:56.840 --> 0:12:58.800 and it said, Um, I see what they did there, 0:12:59.440 --> 0:13:05.600 The machine used increase during the storm in uh city 0:13:05.600 --> 0:13:09.840 banks market share in New York City deposits had doubled, 0:13:10.040 --> 0:13:13.000 and so the rest of the banks moved to catch up. 0:13:13.600 --> 0:13:18.600 And that basically started a revolution, at least in New York. Um. 0:13:18.640 --> 0:13:21.640 Of course that's a lot of people, so that that 0:13:21.679 --> 0:13:23.680 can affect things. And people go in there and see 0:13:23.679 --> 0:13:25.720 how people are using the A t M S and 0:13:25.760 --> 0:13:30.280 they go back home, you know. Yep. Yeah, And like 0:13:30.280 --> 0:13:32.280 I said, in the eighties, that really started to take off. 0:13:32.360 --> 0:13:35.040 So I guess now we can finally start getting into 0:13:35.240 --> 0:13:37.640 what makes up an a t M and how they 0:13:37.760 --> 0:13:41.280 how they actually work. Uh. Now, part of this involves 0:13:41.400 --> 0:13:44.000 the way that we access the A t M s uh. 0:13:44.120 --> 0:13:47.320 And and not just with the key the keypad or 0:13:47.440 --> 0:13:50.880 the touch screen, depending upon the model that you're using, 0:13:51.440 --> 0:13:54.280 but the card you have, your A t M card, 0:13:54.640 --> 0:13:56.680 whatever you're using to access the A t M. And 0:13:56.679 --> 0:13:59.360 there are variations on this, but all of them have 0:13:59.760 --> 0:14:06.880 a a magnetic stripe or mag stripe on them. And uh, 0:14:07.040 --> 0:14:09.520 you might say, well, what the heck is a magnetic stripe? Well, 0:14:09.559 --> 0:14:12.360 it's kind of what sounds like it's a uh, it's 0:14:12.480 --> 0:14:15.720 it's a plastic like film. It's on the back of 0:14:15.760 --> 0:14:19.600 your card that has lots and lots and lots of 0:14:20.280 --> 0:14:25.680 tiny iron based magnetic particles. Yes, as a matter of fact, 0:14:25.840 --> 0:14:30.480 it's very similar, if not nearly identical to the material 0:14:30.520 --> 0:14:34.560 that they used to use in recording tape cassette tape 0:14:34.560 --> 0:14:37.640 cassette tapes, real to real tapes, eight track tapes, also 0:14:37.880 --> 0:14:41.360 floppy disks. Yeah, the material inside there, I mean, it's 0:14:41.400 --> 0:14:44.040 even most of them are even the same brownish color. Right. 0:14:44.160 --> 0:14:46.560 And the way you right to this strip is that 0:14:46.640 --> 0:14:51.360 you you magnetize these little particles. Each of the particles 0:14:51.400 --> 0:14:55.040 acts like its own bar magnet right, and you magnetize 0:14:55.080 --> 0:14:58.280 them to either have a north or south pole direction 0:14:59.320 --> 0:15:03.840 on each part article and so that's like bits, zeros 0:15:03.880 --> 0:15:08.760 and ones. So by creating them in either a north 0:15:08.840 --> 0:15:12.560 or south pole direction, and then you you've got thousands 0:15:12.600 --> 0:15:16.280 of these right, and in one strip. You can encode 0:15:16.320 --> 0:15:19.240 information that way, and that information is going to have 0:15:19.320 --> 0:15:23.360 things like the the account number on it, so that 0:15:23.600 --> 0:15:26.120 it has you know, it's able to say this card 0:15:26.200 --> 0:15:29.840 belongs to this account. Uh. It may also have the 0:15:30.000 --> 0:15:33.800 pen on their the personal identification number, so that you 0:15:33.840 --> 0:15:37.240 can have that as sort of a key pass entrigue. 0:15:37.320 --> 0:15:40.160 You know, as long as the pen that you enter 0:15:40.280 --> 0:15:43.240 into the A t M matches the one that's on 0:15:43.240 --> 0:15:45.960 the card and in the account, as long as all 0:15:46.000 --> 0:15:49.320 three of those are are the same, then you'll be 0:15:49.360 --> 0:15:53.160 able to access your information. So that's on your card, 0:15:53.240 --> 0:15:56.040 which means of course that the A t M has 0:15:56.080 --> 0:16:00.400 to have some sort of card reader involved, which you 0:16:00.400 --> 0:16:03.360 know it's a magnetic stripe reader that you know, depending 0:16:03.400 --> 0:16:06.080 on the style of the A t M, it maybe 0:16:06.080 --> 0:16:08.520 one where you put your card in and it sucks 0:16:08.560 --> 0:16:11.400 it into the machine and you hope when your transactions 0:16:11.440 --> 0:16:14.160 over it will spit it back out again. Or what 0:16:14.320 --> 0:16:16.800 I see most commonly now are the kinds where you 0:16:16.840 --> 0:16:19.560 swipe it. You either have a vertical swipe where you 0:16:19.600 --> 0:16:22.640 just swipe the card down the side of a little reader, 0:16:22.800 --> 0:16:25.000 or you inserted into a slot and pull it back 0:16:25.040 --> 0:16:28.480 out again quickly. And in either case, the what happens 0:16:28.520 --> 0:16:32.120 is those little magnets go past a detector because the 0:16:32.120 --> 0:16:35.520 magnets are in motion, the detector detects the difference of 0:16:35.560 --> 0:16:38.240 the magnetism on each of those little bars and can 0:16:38.280 --> 0:16:41.520 read that as whatever the information is. Yeah, so all 0:16:41.520 --> 0:16:45.360 the information that's printed on the card, um the number 0:16:45.400 --> 0:16:47.720 that's embossed in the card in your name, the machine 0:16:47.760 --> 0:16:49.720 is not reading or looking at any of that stuff. 0:16:49.760 --> 0:16:53.800 It's taking everything from the magnetic stripe. Which is why 0:16:54.120 --> 0:16:58.320 you should not put your your credit cards or a 0:16:58.360 --> 0:17:01.960 T M S cards or anything like that near powerful magnets, 0:17:02.440 --> 0:17:06.800 right because that could actually realign those little magnetic particles 0:17:06.840 --> 0:17:10.160 inside the film. And some people call it de magnetizing, 0:17:10.160 --> 0:17:12.679 but really it's just realigning those polls so it no 0:17:12.760 --> 0:17:15.760 longer it might spout out gibberish now when you when 0:17:15.760 --> 0:17:19.199 you swipe it, or anyway, it's not going to correspond 0:17:19.240 --> 0:17:22.639 with your information and suddenly your card doesn't work anymore. Yeah, 0:17:23.080 --> 0:17:24.920 you can also find the same thing if you've used 0:17:24.920 --> 0:17:27.680 it too much or if the magnetic stripe gets damaged 0:17:27.680 --> 0:17:30.720 in some way. Um. You know, some people say the 0:17:30.800 --> 0:17:33.879 eel skin wallets. Yeah, I hear that a lot, because 0:17:33.960 --> 0:17:35.439 you know, and there are a lot of different theories 0:17:35.440 --> 0:17:38.919 about Actually the theory I've heard that seems to explain 0:17:38.920 --> 0:17:40.640 it the most, or it seems to be the most 0:17:40.880 --> 0:17:44.760 logical to me. Eel skin wallets some people claim came 0:17:44.800 --> 0:17:47.399 from electric eels and that somehow has some sort of 0:17:47.440 --> 0:17:50.679 electric impulse still stored in it, and that's what's screwing 0:17:50.760 --> 0:17:54.919 up the cards. Count me skeptical on that one exactly. 0:17:55.600 --> 0:17:59.479 But a lot of these have a magnetic clasp so 0:17:59.560 --> 0:18:02.359 that when you close it it it remains closed, and 0:18:02.440 --> 0:18:06.280 the magnetic clasp depending on how your card is, how 0:18:06.359 --> 0:18:09.440 you're storing your card in the wallet, Um, the stripe 0:18:09.520 --> 0:18:11.320 might be close enough to the magnetic class that the 0:18:11.359 --> 0:18:16.520 magnetic class is is realigning those magnetic particles in the film, 0:18:16.560 --> 0:18:21.000 So don't do that. Well. Yeah, so once that, uh, 0:18:21.080 --> 0:18:24.000 you're you have the magnetic card reader. We've talked about 0:18:24.000 --> 0:18:29.800 that and and basically the information is going into a computer. Yeah, 0:18:30.560 --> 0:18:33.960 very basic CPU inside every a t M and in 0:18:33.960 --> 0:18:36.440 fact a lot of them run Windows. Yeah, which we'll 0:18:36.440 --> 0:18:39.680 get to. The earlier A t M s were all proprietary. 0:18:39.760 --> 0:18:43.159 Oh yeah, Now that was when if you had an 0:18:43.200 --> 0:18:47.160 account with UM Bank something, you know, First National Bank, 0:18:47.320 --> 0:18:49.760 and you wanted to go to Second National Bank, you 0:18:49.800 --> 0:18:51.879 were on your own. You have to find an a 0:18:51.920 --> 0:18:54.159 t M for with First National Bank or you are 0:18:54.200 --> 0:18:56.680 out of luck because your card wouldn't work. The system 0:18:57.000 --> 0:19:01.119 wasn't compatible. However, it all so meant that those A 0:19:01.240 --> 0:19:04.920 t M s had the benefit of security through obscurity. 0:19:05.320 --> 0:19:10.199 That's true because UH would be thief would have to 0:19:10.280 --> 0:19:13.720 focus on a particular type of a t M and 0:19:14.160 --> 0:19:16.399 the things that might work on that a t M 0:19:16.440 --> 0:19:18.520 would not necessarily work on a t M s for 0:19:18.560 --> 0:19:23.000 other banks, So it's somewhat limited the liability and the 0:19:23.080 --> 0:19:26.200 vulnerability of those machines. Once the machine started to move 0:19:26.240 --> 0:19:30.280 toward more computer based operating systems like Lennox and Windows, 0:19:30.880 --> 0:19:34.160 then you opened up new opportunities for thieves to target 0:19:34.440 --> 0:19:38.080 specific parts of the A t M infrastructure, and UH 0:19:38.200 --> 0:19:40.879 and made it in some ways more vulnerable than the 0:19:40.960 --> 0:19:44.800 older models. Now I say that, but the truth is 0:19:44.840 --> 0:19:47.920 you can actually find these older model A t M 0:19:48.040 --> 0:19:51.840 s on plenty of sites like eBay, where you could 0:19:51.880 --> 0:19:54.440 buy an A t M if you wanted to, and 0:19:54.800 --> 0:19:58.199 if your goal was to deconstruct, to hack this a 0:19:58.280 --> 0:20:00.359 t M so you would learn how it works, you 0:20:00.400 --> 0:20:04.600 could potentially find vulnerabilities in that system to exploit. Don't 0:20:04.680 --> 0:20:08.000 do that, it's illegal. You don't want to do that, 0:20:08.760 --> 0:20:12.000 but there that That is one of the downsides to 0:20:12.040 --> 0:20:14.600 the old systems too, is that, you know, it's not 0:20:14.720 --> 0:20:17.119 like these things were. It's not like you had to 0:20:17.160 --> 0:20:20.000 have a license to own one. You know, you just 0:20:20.040 --> 0:20:21.960 had to buy one. So you just had to find 0:20:22.000 --> 0:20:26.360 someone willing to sell one and then you can buy it. So, yes, 0:20:26.400 --> 0:20:29.520 you've got your CPU in there. Uh. However, the A 0:20:29.600 --> 0:20:34.040 t M is not its own standalone UM machine like that. 0:20:34.280 --> 0:20:38.159 It's not that it's it's disconnected from the outside world. No, 0:20:38.520 --> 0:20:40.320 but if you if you think about it, it's it's 0:20:40.440 --> 0:20:43.760 very much like the computer that sits on your desktop 0:20:43.840 --> 0:20:48.119 or laptop. So you've got a screen for customer, uh 0:20:48.240 --> 0:20:51.280 for basically an output device. You've got a printer that 0:20:51.359 --> 0:20:54.719 prints out. You've got an input device or maybe two. 0:20:54.760 --> 0:20:56.159 You might have a touch screen. You might have a 0:20:56.240 --> 0:21:00.600 key pad to type in members or both um and 0:21:00.640 --> 0:21:04.560 hopefully both for those of people who have vision impairments, 0:21:04.800 --> 0:21:08.600 right right. And then you also have uh basically an 0:21:08.600 --> 0:21:12.359 internet connection. It may be on a private network. It 0:21:12.400 --> 0:21:14.639 might be some kind yeah, very it might be a 0:21:15.320 --> 0:21:20.600 closed off private connection, but it goes to a whatever 0:21:20.680 --> 0:21:24.960 bank is behind that particular a t M. Yeah, it'll 0:21:24.960 --> 0:21:27.879 have a network connection of some type to communicate with 0:21:28.000 --> 0:21:31.239 a a server somewhere that has account information on it. 0:21:31.800 --> 0:21:34.040 So if you have three dollars in your account you 0:21:34.080 --> 0:21:37.720 want to withdraw twenty dollars, it will say, okay, well 0:21:37.880 --> 0:21:41.600 Jonathan's got three dollars, so I can give him twenty dollars. 0:21:42.080 --> 0:21:45.320 And he's withdrawn twenty dollars, so it makes a note 0:21:45.320 --> 0:21:46.720 of that in the account, so it says, now he 0:21:46.720 --> 0:21:49.560 has two left. Yeah. The way this works is that 0:21:49.680 --> 0:21:52.520 so you can think of the especially the older a 0:21:52.600 --> 0:21:55.640 t M s um, we're really thin clients. Yeah they were, 0:21:55.720 --> 0:21:58.760 they were. You know. The the had essentially enough power 0:21:58.880 --> 0:22:02.359 for it to read the rip to uh uh to 0:22:03.320 --> 0:22:07.840 two allow you to input your pen and to display 0:22:07.880 --> 0:22:10.959 the information. But then what it would do is the 0:22:11.080 --> 0:22:14.640 terminal that you're using would connect to a host processor. 0:22:14.760 --> 0:22:18.720 Now this would be a computer that belongs to whatever 0:22:18.760 --> 0:22:23.760 financial institution again is owns that a t M. Now, 0:22:23.800 --> 0:22:26.520 if that's your bank, then that's pretty much where this ends. 0:22:26.560 --> 0:22:30.160 It goes, it refers to your account. Make it confirms 0:22:30.160 --> 0:22:31.920 that you that you are who you say you are, 0:22:32.000 --> 0:22:34.360 and that at least according to your pen and that 0:22:34.920 --> 0:22:37.800 you have the funds that you require in order for 0:22:37.800 --> 0:22:39.600 you to get whatever it is you're asking. So again 0:22:39.640 --> 0:22:41.480 like in your example, that that you have at least 0:22:41.520 --> 0:22:45.280 twenty dollars you can withdraw um. And then it will 0:22:45.320 --> 0:22:48.720 send the information back to the machine that you're at 0:22:48.840 --> 0:22:52.199 and either confirmed that it can dispense the cash or 0:22:52.240 --> 0:22:55.959 deny it, and then the machine does whatever it's supposed 0:22:56.000 --> 0:22:59.320 to do. Uh, if your bank is a different bank, 0:22:59.560 --> 0:23:01.399 than why happens is the it will go to the 0:23:01.400 --> 0:23:05.359 host processor. The host processor will then route that request 0:23:05.520 --> 0:23:09.960