Don't Miss


Home   >   Business   >   Industries   >   Banking   >   Banks weigh options to protect ATMs from hackers

Banks weigh options to protect ATMs from hackers

By on May 7, 2014

Deposit Money Banks in the country are mulling two options to protect their Automated Teller Machines from hackers following the expiration of the April 8 deadline set by Microsoft for the cessation of support of the Windows XP operating system, banking sources have disclosed.

The first option is to buy customised support solution from Microsoft, while the second is to implement “compensating controls” on their ATMs pending when they will complete the process of migrating to the Windows 8 operating system.

Compensating controls refer to series of technical operations that could offer temporary protection for the ATMs.

Microsoft had on April 8 stopped offering its 12-year cyber security and technical support for the Windows XP following a year’s notice.

The development has put all the ATMs still running on Windows XP across the globe at risks of hacking by cyber criminals.

In Nigeria, over 70 per cent of the 13,000 plus ATMs are still running on the Windows XP and Microsoft Nigeria has said they are at risks from cyber thieves.

Microsoft has advised banks and all users of Windows XP to migrate to the Windows 7 or 8 operating systems.

The migration, however, requires detailed analysis of the entire banks’ systems to ensure there are no compatibility issues after the migration, according to experts.

Across the world, some banks have migrated, while others have bought customised extension from Microsoft. Others are still considering what to do.

Findings showed that the Nigerian banks were considering plans to buy Microsoft customised extension on their Windows XP pending when they would conclude the modality of migrating to Windows 7 or 8.

Some banks, it was learnt, were also looking at implementing what experts call compensating controls on their ATMs pending when they would migrate to Windows 7 or 8.

According to sources close to the development, some banks have yet to fully make up their mind on which of the options to follow.

An industry source familiar with the matter said, “As it is now, some banks are already at an advanced stage in their discussions with Microsoft Nigeria. Some are concluding on buying the customised extension pending when they will conclude with their final plans on how to migrate.

“Others are trying to look at the option of compensating controls, which has to do with some technical way of protecting their ATMs pending when they will migrate.”

Nigerian banks had tried to seek an extension of the April 8 deadline from Microsoft but the American firm’s unit in the country said it was not possible for it to grant country-by-country extension.

The Country Manager, Microsoft Nigeria, Mr. Kabelo Makwane, had told our correspondent in an exclusive interview that the firm had been encouraging the banks to migrate because the level of cyber crimes currently existing globally was beyond the capabilities of Windows XP, hence the need to migrate quickly.

Makwane, who spoke through the Country Chief Technology Officer of the company, Mr. Olayinka Oni, also said Microsoft was having discussions with the banks to get them migrated to the Windows 8 operating system.

In order to protect its customers globally from fraud and other cyber threats, Makwane said Microsoft was already selling custom-support to companies in Europe and other parts of the world pending when they would complete the migration process.

The Microsoft boss, however, said, “We do not want to encourage the banks to use the custom-support for a long time. The reality is that the cyber security threat that exists today is far beyond the capabilities of Windows XP.

“Getting the banks migrated is not for selfish interest but for the benefit of the end users.”

 

[Punch]