12,000 Nigerian ATMs At Risk As Cost Of Operation Rises

About 12,000 automated teller machines (ATMs) of Nigerian banks are at risk of malicious software (malware) from cyber-attacks as Microsoft ceased support to all desktops, laptops, notebooks, ATMs and other machines running on Windows XP operating system (OS) yesterday. Microsoft has warned die-hard Windows XP users to prepare to deal with an influx of cyber-attacks targeting their systems following the official support cut-off on April 8. The world’s biggest business software company also advised users of XP to migrate to Vista, Windows 7 or 8 OS which is more advanced. In Nigeria, the Committee of e-Banking Industry Heads (CeBIH) said they have formed a committee with Microsoft Nigeria to ensure a speedy upgrade of the ATMs to avoid any cyber-attacks that may affect the financial fortunes of Nigerians and the banks. Microsoft will stop rolling out security updates and patches for XP, leaving machines running the 12-year-old operating system more vulnerable to attack. Up to 95 per cent of the world’s ATMs could be left wide open to hackers starting today as Microsoft ends technology support for the Windows XP operating system, the PCI Security Standards Council (PCISSC) warned. Microsoft Trustworthy Computing Group (TwC) director Tim Rains said businesses still using XP will be putting themselves and their customers at increased risk. Mr. Chuma Ezirim, head of electronic banking, First Bank Plc while playing down the danger ahead said ATMs in western nations are more at risks than those in Nigeria which are only 12,000 in number. “Some banks in Western countries have over 50,000 ATMs and they are at much risk. It is just that Microsoft won’t be able to issue major releases and support to the ATMs but the ATMs will work here,” he said. Efforts to get the official response from Microsoft Nigerian proved abortive as Yemi Orimolade, Public relations manager said only Ade Famoti, Windows XP, technology specialist could comment on that. Email sent to him could not be replied as at time of going to press. Meanwhile, Ghana Interbank Payment and Settlement Systems (GhIPSS) has ordered all banks in their country to upgrade their ATMS from Windows XP to Windows 7 or 8 or face sanction. The banks had till yesterday (April 8) as the deadline to implement the directive. In a related issue, the maintaining of ATMs is becoming increasingly expensive since the advent of the cash-lite policy of the Central Bank of Nigeria (CBN) in 2012, which has increased the use of ATMs. According to the Head of E-Banking of United Bank of Nigeria Plc (UBA), Adeyinka Adedeji, banks are spending more in sorting cash for ATMs as well as maintenance as its use continue to increase. The Central Bank of Nigeria (CBN) in its Financial Stability Report released early this year disclosed that ATMs had been the most patronised platform accounting for 93.3 per cent of transactions on e-payment channels in the first half of 2013. Whilst the number of ATMs stood at 11,702 at end-June 2013 as against the revised figure of 10,727 at end-December 2012, reflecting an increase of 9.09 per cent, the volume of ATM transactions decreased by 30.6 per cent to 136.663 million during the first half of 2013, from 196.995 million in the second half of 2012. However, the value of transactions rose to N1.286 trillion at end-June 2013, from N1.046 trillion in the second half of 2012, showing an increase of 22.9 per cent. Adedeji explained that apart from security, and power costs in maintaining ATMs, banks also spend on sorting the notes that go into the ATM. According to him, ATMs get jammed if there is any dirty note among the pile, rendering the ATM useless at that point until someone