hieves in Sacramento, Calif., attempted to open the ATM using a pry bar, welder's torch and sledgehammer, but their efforts were for naught. The culprits couldn't get into the machine before its global positioning system, better known as GPS, led police right to them.

Within about four hours, the stolen ATM was retrieved - with "a large amount of cash still inside," one press report claimed. Thanks to the ATM's GPS tracking device, police in Sacramento quickly located and arrested the would-be thieves, who also raided an ATM in July at the Cal Expo exhibition grounds.

But despite the proven merits of GPS and an increasing number of GPS-equipped ATMs being installed in high-risk locations, ATM industry insiders say GPS tracking hasn't realized widespread adoption. Many contend that cost - most GPS devices cost between $1,200 and $2,000 - and technology limitations have stunted GPS's use.

"With the technology that exists right now, GPS just isn't feasible in most cases," said Ron Christensen, President of San Francisco-based Swipe USA, an ISO and ATM-placement company.

Christensen's company had announced plans in 2005 to launch a GPS feature on its ATMs. But those plans have been put on hold, he said, "because the technology just isn't where it needs to be yet."

The sky is the limit

Most existing GPS devices must have clear satellite views in order to work. If the view is obstructed by metal or other materials, the GPS signal isn't detectable. So, that limits the effectiveness if the device is placed inside an ATM or if a stolen ATM is put into an enclosed van.

Some say the answer to that problem may be a technology called "assisted GPS." Rather than sending a signal directly to satellites, assisted GPS uses existing cellular networks to send signals to cellular towers or bases, which then transmit the signal to a satellite.

That's similar to the type of technology being used in tracking devices installed by ATM manufacturer Wincor Nixdorf International. The company's current tracking system, which is available as an option on all Wincor ATMs, uses mobile communications technology.

"The location system ensures that, at the very moment the ATM is removed from the bank, an SMS [short message service] text message is sent automatically to the tracking center, triggering a tracking and pinpointing process," according to Wincor's Web site.

"The new tracking system means that, should an ATM be stolen, the route it takes can be detected and traced immediately. The emergency services can be directed accordingly and are able to relocate the stolen object quickly, secure the cash contained in the ATM, and track down the perpetrators."

GPS and other location-tracking devices may be more readily adopted outside the United States. In addition to Wincor's European introduction, London-based Travelex Holdings Ltd. introduced ATM-location-tracking devices on its cash dispensers several years ago.

Travelex would not share any information about the tracking devices it uses. The company said only that it uses technology similar to GPS.

Global Investigative Group Inc., an Irvine, Calif.-based company that provides ATM risk assessment and security consulting, introduced a tracking device for ATMs earlier this year.

Mark Nickelson, the company's President and Chief Executive, said in an e-mail that the product has been "well received" by the ATM industry.

But Global Investigative Group isn't marketing and selling its GPS device on its own. GPS is included as part of a new strategic business initiative, known as GlobalBAT.

Along with security system implementation, GlobalBAT offers ATM owners, financial institutions and insurance companies a series of analysis and consulting services.

Wait and see approach

Without added incentives, GPS just doesn't seem that attractive, at least not for the moment, to Swipe's Christensen. He said his company will likely reconsider GPS in a couple of years, "when and if the technology improves enough to make it worthwhile."

Once the cost drops and the technology improves, Christensen predicts GPS adoption will skyrocket. Until then, however, no one in the business seems to be too excited about what GPS has to offer, said Mark Coons, President and Chief Executive of American Special Risk, a Charlotte, N.C.-based ATM insurance company.

"To date, we have seen relatively few independent deployers use GPS," Coons said. "GPS has merit for sure, but the type of GPS and other factors all must be considered."

Although GPS could offer ATM deployers a viable way to reduce their insurance rates, the cost of the technology is too high to offset the potential loss. Besides, other factors, such as police response time, play major roles.

Regardless of how scientific and precise the GPS technology, if law enforcement doesn't find and/or recover the ATM within hours or minutes of the alarm's signal, criminals often have enough time to empty and toss an ATM's vault. The timing, technology and response have to be right, Coons said.

Whether GPS is the answer or not, there's no doubt that ram raids are a problem - one the industry is working diligently to address.

Coons estimated that American Special Risk pays about $4.5 million a year in claims related to smash-and-grab incidents. About 80% of his company's ATM claims - 300 or so a year - involve the removal of an entire machine, he said.

"Like all security and risk-management methods, if they work to reduce ATM crime, a discount is warranted," Coons said. "In some cases, though, GPS may be the difference between being insured and not being insurable.

"We generally like GPS, particularly for outdoor events and higher-risk locales, and know that it has proven successful in recouping stolen money and, perhaps more importantly, apprehending criminals in a few instances."

Where do we go now?

Jerry Gregory of Cash Carriers USA doesn't see much interest in GPS right now.

"Of the more than 2,000 ATMs serviced within our service areas, not one customer is presently using GPS as a preventative measure," Gregory, whose company works primarily with ISOs and retailers, said.

"The primary ISO deployer has opted, almost from the beginning, to go with less expensive equipment."

Instead, most ATMs are equipped with less expensive security measures such as dye bombs that are used to mark stolen cash, he said.

Missy Baxter is a regular contributor to ATMmarketplace. Her work includes an in-depth update about the state of wireless ATM connectivity and a glimpse at the battle between merchants and the card Associations over interchange. Link to original article: www.atmmarketplace.com/research.htm?article_id=26546&pavilion=4&step=story