Banks dump Microsoft’s ATM protection solutions

Deposit Money Banks in the country have been forced to spend millions of dollars to deploy imported and locally-manufactured computer solutions to protect their Automated Teller Machines from hackers, investigation by our correspondent has revealed.

Top bank executives disclosed to our correspondent on Tuesday that the development followed the termination of Microsoft’s security and safety support for the Windows XP Operating System on April 30, 2014.

Microsoft’s decision has made over 9,000 out of the 13,000 ATM machines in the country, which make use of the Windows XP OS, vulnerable to hacking.

Microsoft said the Windows XP OS had exceeded its end-of-life and it was necessary for the company to end its technical (security and safety) support for the operating system.

Efforts by Nigerian banks to get the April 30 deadline extended was abortive as the country’s Microsoft office said it was not possible for the American software giant to give country-by-country extension.

Top bank officials told our correspondent that in a bid to protect the over 9,000 ATMs using the Windows XP from hackers, Nigerian banks had explored other options opened to them.

These basically include either buying customised extended support from Microsoft or deploying alternative solutions.

A top official close to the development revealed that most of the banks had spent millions of dollars to deploy the alternative solutions to protect their ATMs instead of buying the customised extended support that Microsoft advised them to buy.

The source said, “Banks are spending millions of dollars to protect their ATMs from hacking following the expiration of Microsoft’s Windows XP OS. I know of at least five banks that have bought solutions from overseas and within the country in order to implement some compensating controls around their ATMs.

“The solutions are mitigating the effects of the vulnerability of the ATMs to the activities of hackers following the end of support for Windows XP by Microsoft.”

Industry sources, who confirmed the development, said the banks’ decision to explore alternatives followed pressure from the Central Bank of Nigeria.

Asked why most banks did not buy the Microsoft customised extended support, the source said, “It is very expensive. Even the solutions they have bought are very expensive. But most importantly, I think most banks have weighed the cost-benefits analysis and realised that it is better for them to deploy the alternative solutions. More so, banks are deploying new ATMs that are coming with Windows 7 and 8.”

Industry expert and Chief Operating Officer, Digital Encode, an ICT firm, Mr. Adewale Obadare, said while it was good for the banks to deploy alternative solutions, which he described as compensating controls, there was a need to ensure that the solutions were well implemented.

“I commend the banks for spending millions to buy those solutions. It is good in order to protect their ATMs. However, I think they also need to ensure that those solutions are well implemented in order to achieve results,” he said.

The Chairman, Committee of E-Banking Heads, Mr. Tunde Kuponiyi, was not readily available to comment on the development.