Cash deposit machines have been in use for many years in the banking and retail sectors. However, during the pandemic, many small and medium size retail stores either by installing front desk or back office deposit machines, either purchased directly or supplied by cash management companies.
The increase of the use of payment machines in the retail sector.
How the pandemic has accelerated the deployment of cash payment/deposit machines ?
We now know that banknotes do not transmit the COVID-19 virus, but during the pandemic there were many fake rumors telling the public that they did. Nevertheless, the majority of customers still wanted to use cash for daily purchases. Because of this, many retailers decided to implement automatic cash payment and cash machines.
These solutions allow for cash payments to be made without the physical exchange of banknotes. As of today, numerous reports show an increase in the use of these solutions, usually linked with an immediate in-account credit, many CITs now include these deposit machines into their service offerings.
Typology of the cash deposit and payment machines
We can identify different types of machines or kiosks, those used for cash deposit or storage, and the ones that are specifically for small cash payments; these are mostly used in small to medium retail shops, grocery stores.
Cash Deposit Machines : Back Office
These solutions were first implemented years ago as part of CITs strategy to improve their cash management processes for their customers. They evolved to a point that they are capable of storing cash into bags or cassettes, count the cash deposited and do an immediate credit into the customer’s bank account. Depending of the capacity required, the cash is deposited into a bag (bulk) or into a cassette (box). The CIT can then collect this cash either in a sealed bag or directly from a cassette doing a swap out process.
Automatic Cash Payment Machines : Front Office
These solutions have existed for years but became very popular during the pandemic as they allow a customer to undertake a cash purchase at a store, by depositing the money directly inside a machine that is placed in the shop floor, change being giveny. These automatic tills are equipped with stacking cassettes that store the cash until the CIT guard collects them. There are several original equipment manufacturers (OEM) of this type of machines, Glory being one of them.
How criminality evolved with the appearance of cash payment and deposit machines ?
The retail sector has always been a target for the opportunist criminal looking for quick access to cash. This involves all retail sectors - grocery, pharmacy, tobacco shops etc., these are the most frequently attacked as they offer a mix of different services for cash (lottery, tobacco…).
Latest trends on handgun attacks in France
The most recent report on handgun attacks in France shows an increase in 2022 to the same period in 2021. The most affected by these attacks are the small grocery stores normally found in the local neighborhood (10%), followed by the tobacco shops (9,5% of the total attacks), gas stations being 4th in the ranking (>3%). There may be different reasons behind this increase; one of them is most probably the implementation of additional security on other cash points such as ATMs and CITs that are now becoming less attractive to criminals.
Why small and medium size retailers are the preferred target ?
The retailers, especially small to medium size, are the preferred target for what are usually , non-organized criminals who are looking for quick and easy access to cash.
The security measures implemented by the smaller retailers when compared to major retail chains are reduced, their budget being smaller.
In the past the criminal objective was to steal the cash in the cash register, but retailers got used to remove cash over night. Today with the new payment solutions, the cash remains inside the machine 24 x7 so being more attractive to robbers.
How IBNS can help prevent attacks in the retail sector ?
The back office deposit machines are often equipped with a safe and are securely fixed to the ground. This is due to the amounts of cash stored which requires increased security. These fixings will delay the criminals in their attempts but it doesn’t stop them completely, in some cases they pull out the machine, the kind of same modus operandi as seen with ATM attack.
The front office payment solutions usually have a cassette containing the banknotes, which do not offer a strong resistance to attack.
The evolution of IBNS : taking advantage of the experience with the CIT and Banking sectors
Intelligent Banknote Neutralization System (IBNS) is globally recognized as the most effective deterrent against cash robberies.
Europol recently reaffirmed that IBNS is the most effective to combat crime on ATM cash.
Based on its experience and knowledge acquired over the last 35 years, Oberthur Cash Protection is a leading supplier of IBNS solutions for the ATM and CIT Industries.
Thanks to its expertise, OCP is offers custom designed ink-staining solutions to different cash deposit machines (CDM) and a range of front office machine manufacturers; the most recent collaboration by OCP with Glory Global Solutions has led to the development of an IBNS module to protect the cash inside the Ci-10 range.
How Hightech IBNS can become a part of the cash ecosystem ?
IBNS is not just the ink-staining. The Oberthur Cash Protection R&D team covers all aspects of the engineering, including mechanical, software, and chemical and most important nowadays, encrypted communications.
OCP has been working on integrated solutions for many years which enable users to manage their IBNS solutions effectively.
As IBNS protection has proven to be a good deterrent against crime on cash in transit and ATMs, the criminals have searched new targets.
The retail sector is one of them, reason why Oberthur Cash Protection has anticipated such phenomenon, offering to its customer its knowledge and experience to develop reliable solutions.
Ghislain Kwasny, International Business Development, Oberthur Cash Protection
Discover now : How to Future Proof Your ATM Network from physical Attacks !
