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ATMs: Banks seek software upgrade extension from Microsoft

By BusinessNews Staff on April 18, 2014

Deposit Money Banks are discussing with Microsoft to seek extension of technical support for Windows XP software following the expiration of the deadline set by the American company on April 8.

Microsoft has stopped supporting the security system of the Windows XP after giving a long notice of its intension to do so.

Majority of the over 13,000 Automated Teller Machines belonging to the DMBs use the Windows XP except those deployed in the last two years which came with Windows 7 and Windows 8 by default.

The implication is that in the event of any threat from the activities of hackers, virus or technical flaw, Microsoft will not be held responsible; neither will it provide any solution.

Microsoft sends updates in the form of patches on regular basis to supports its software, including Windows XP to correct any noticed flaws, virus or provide security against specific activities of hackers.

It was gathered that a few other countries had also been discussing with Microsoft for a possible extension of the April 8 deadline.

Information and Technology sources and industry experts said the chances that Nigerian banks would be considered by Microsoft were slim as the size of the banking sector was not significant enough for the American company to grant such extension.

They said there was a need for banks to upgrade to Windows 7 or Windows 8 as soon as possible since Microsoft was no longer supporting the security system of the Windows XP.

However, the Chairman, Committee of E-Banking Industry Heads, Mr. Chuks Iku, allayed the fears of any danger in the continued use of Windows XP by some banks’ ATMs.

Iku, who confirmed that the CeBIH was already in discussion with Microsoft on behalf of the DMBs, said there “is no cause for alarm” as ATMs would still continue to function effectively and in a secure manner.

“The migration is from Windows XP to Windows 8. Microsoft is the owner of the licence and this is why we are working with Microsoft in terms of ensuring that we comply. What we are doing now at the CeBiH is to ensure compliance, working directly with Microsoft. Different banks have different ways of approaching” the matter.

He also explained, “The ATMs are still working. They are not going to go down. But all we are trying to do is to enhance the features of the ATMs in terms of the migration. There is really no cause for alarm but the important thing is that we should do it quickly.”

Iku said the CeBIH would work with the Central Bank of Nigeria to ensure the discussion with Microsoft scaled through.

“Some banks are doing it on their own but as an institution that works together, instead of telling each bank to negotiate its extension, we are doing it as a body to see how we can buy time to continue to guarantee safe transaction. We are going to work with the CBN in this regard to ensure that Microsoft considers it.”

Meanwhile, the CeBIH chairman said the DMBs had hired consultants to assist in the installation of anti-skimming device on the ATM machines ahead of the June 1 deadline set by the CBN.

The CBN had in March issued a circular, asking banks to install anti-skimming device on their ATMs before June 1.

This was against the backdrop of an upward increase in the number of the ATM related fraud in the banking system.

However, Iku said, “I can confidently tell you that a lot of banks have complied by installing the anti-skimming device on their ATMs. The deadline is June, but there is no bank that will wait till June to implement. As we speak, a lot of banks have actually engaged consultants to implement the anti-skimming device.”

[Punch]

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