Project Interim Report

Name ASHWIN KUMAR V L

USN 222VMTR00144

Elective Cyber Security

Date of Submission 6/9/2024

“ATM SIMULATOR SYSTEM’’

1.1 Introduction

The ATM Simulator System is a comprehensive software-based solution designed to replicate the
key operations of an Automated Teller Machine (ATM). As ATMs are an integral part of modern
banking, facilitating quick and convenient financial transactions, the simulator aims to bring this
experience into a controlled and simulated environment. It allows users to interact with a virtual
ATM interface to perform fundamental banking tasks such as checking account balances,
withdrawing cash, transferring funds, and changing Personal Identification Numbers (PINs). These
functionalities are modelled closely after real-world ATM operations, offering users a realistic and
secure banking experience without requiring access to an actual ATM.

This system serves multiple purposes. From an educational perspective, it provides a hands-on
platform for individuals or students to gain practical knowledge about ATM operations. By
interacting with the simulator, users can become more familiar with the workings of ATMs, which
is particularly beneficial for those new to digital or self-service banking systems. The simulation
offers an opportunity to learn and practice without the potential risks involved in using a live ATM,
such as transaction errors or security concerns. This makes it an ideal tool for training new
employees in financial institutions or educating customers on how to use ATM services effectively.

Moreover, the ATM Simulator System plays a crucial role in software testing and system
development. It allows developers and financial institutions to test the performance, security, and
user interface of ATM-related software in a controlled, risk-free environment. Before deploying
new software, updates or features in real ATMs, developers can ensure that the changes are
functioning as intended, that security protocols are robust, and that the user interface is intuitive.
This reduces the likelihood of software glitches or security vulnerabilities in the final system,
thereby enhancing user trust and operational efficiency.

In addition to its educational and testing applications, the ATM Simulator System can be used for
research purposes. With the rapid advancement of financial technology (FinTech), new ATM
features, such as biometric authentication or enhanced security measures, can be experimented
with within the simulator before being rolled out on a larger scale. This controlled testing
environment ensures that innovative solutions are thoroughly vetted, reducing potential risks in
real-world deployment.

The design of the ATM Simulator System emphasizes a user-friendly interface, simulating the look
and feel of actual ATMs. Users can navigate through the various banking options using simulated
cards and PINs, providing a complete ATM experience. Security remains a top priority within the
simulator, and even though the system operates in a simulated space, secure login processes,
encrypted transactions, and session handling are incorporated to reflect real-world safety standards.
Overall, the ATM Simulator System is a valuable tool that supports a wide range of applications—
from education and training to testing and research. It not only helps users develop an in-depth
understanding of how ATMs work but also ensures that developers can enhance ATM software
systems in a secure, controlled setting. By bridging the gap between real-world operations and
software simulations, the ATM Simulator System significantly contributes to the advancement of
banking technologies, the enhancement of user experiences, and the optimization of financial
services.

1.2 Problem Statement

The ATM Simulator System addresses the increasing need for a reliable, secure, and user-friendly
platform to help individuals interact with ATM functionalities without the risks associated with
live banking systems. In today's fast-paced digital world, ATMs are vital for facilitating seamless
financial transactions. However, improper usage can result in various problems such as financial
losses, compromised security, or ATM malfunctions. In some cases, users may lack knowledge of
essential safety protocols to protect their sensitive information, leading to increased risks of fraud
or identity theft.

This challenge extends to developers and institutions responsible for maintaining and upgrading
ATM software. When deploying new updates or features in live systems, developers face the risk
of software bugs or malfunctions that can disrupt services, cause financial losses, or damage
customer trust. Testing in real-world environments can be risky, making a controlled, simulated
space essential for validating new functionalities, troubleshooting issues, and ensuring secure ATM
operations.

Additionally, a growing segment of users, particularly those unfamiliar with technology or digital
banking, face difficulties when interacting with ATMs. Simple tasks like balance inquiries or cash
withdrawals can become stressful due to a lack of confidence or understanding. These users need
a safe, error-free environment to practice using ATMs and familiarize themselves with the interface
without the fear of making costly mistakes.
As ATM functionalities grow more complex, with features such as biometric authentication and
multi-factor verification, users must stay updated on new developments. Institutions and banks
require a platform for training and usability studies to refine user experiences and improve ATM
interfaces.

The ATM Simulator System offers a solution by creating a simulated, yet realistic, environment
that mirrors real ATM operations. It allows users to perform tasks such as checking balances,
withdrawing money, and transferring funds in a risk-free setting. Additionally, it serves as a testing
platform for developers to validate updates, detect security vulnerabilities, and ensure the
reliability of new features before their live deployment.

Moreover, the system supports research and innovation, offering a space to test emerging financial
technologies like contactless transactions and integrated mobile banking. By enhancing user
competence, reducing errors, and ensuring software reliability, the ATM Simulator System
supports the evolution of ATM technology while maintaining security and convenience for users
and developers alike.

1.3 Objectives of the Study

i. To develop a safe and controlled ATM simulation platform: The primary focus of this
objective is to create a robust and secure simulation environment that accurately mirrors
the functionalities of real-world ATMs. This platform will allow users to engage in typical
ATM activities such as cash withdrawals, balance inquiries, and fund transfers, without the
risks involved in using an actual banking system. By providing a safe, controlled setting,
users can explore and learn without the fear of real financial consequences or security
breaches. The simulator will replicate the key components of ATM transactions, including
card insertion, PIN verification, and transaction processing, ensuring that users experience
realistic scenarios. This platform will be essential for training, education, and software
testing.
ii. To enhance user competence in ATM operations: Many individuals, particularly those
unfamiliar with digital banking or older adults, may find ATM operations confusing or
intimidating. This objective seeks to improve user familiarity with ATM functionalities by
 allowing them to practice various transactions in a simulated, error-free environment. By
repeatedly interacting with the system, users will build confidence and develop a better
understanding of how ATMs work, reducing the likelihood of errors such as incorrect PIN
entries or failed transactions. This practical experience will also help users become more
comfortable with banking technology, improving their financial literacy and encouraging
them to engage more fully with self-service banking solutions.
iii. To provide a testing environment for software developers: Software developers often
face challenges when implementing updates or new features in live ATM systems due to
the potential for costly errors and disruptions. The ATM Simulator System provides a
solution by offering developers a risk-free environment where they can thoroughly test
software updates, security protocols, and new functionalities before they are released.
Developers can simulate different transaction scenarios, identify potential issues, and
address them before the software is deployed in a real-world setting. This ensures that new
updates are reliable, secure, and perform as expected, minimizing downtime and reducing
the risk of system failures or bugs in live ATM networks.
iv. To support financial and security training: This objective focuses on using the ATM
Simulator as a tool for training both banking professionals and customers in financial
literacy and security awareness. For banking staff, the simulator can be used to demonstrate
ATM operations, troubleshooting, and safety protocols, helping them educate customers
on best practices. Customers, on the other hand, will benefit from learning about secure
ATM usage, such as safeguarding PINs, recognizing security threats, and avoiding
common pitfalls like skimming devices. By training users on these aspects, the simulator
helps reduce the risk of fraud and identity theft, promoting safer banking practices.
v. To enable research and innovation in ATM technologies: The ATM Simulator System
provides a valuable platform for testing and exploring new ATM technologies before they
are implemented in real-world systems. This includes experimenting with cutting-edge
features such as biometric authentication (e.g., fingerprint or facial recognition),
contactless payments, and mobile banking integration. Researchers and developers can
assess how these technologies perform under different conditions, evaluate their security,
and determine their usability for end users. This experimentation will help financial
 institutions stay at the forefront of technological advancements while ensuring that the
innovations they deploy are secure, user-friendly, and beneficial to customers.
vi. To improve user interface and experience design: A well-designed user interface is
critical for ensuring that ATM systems are easy to navigate, especially for users who are
less familiar with technology. This objective aims to gather feedback from users interacting
with the ATM Simulator to understand their experience, identify any usability issues, and
make improvements to the interface design. By refining the layout, flow, and interaction
methods within the simulator, developers can ensure that the final system is intuitive,
minimizes user confusion, and caters to the needs of a diverse user base. The ultimate goal
is to create an ATM interface that is accessible, user-friendly, and capable of meeting the
expectations of all users, improving the overall customer experience in real-world ATMs.

1.4 Scope of the Study

The scope of the study for the ATM Simulator System encompasses several critical aspects,
focusing on both the functional capabilities of the system and its practical applications in
education, software development, and user training. The scope includes the following areas:

i. Development of Core ATM Functionalities: The study involves designing and

implementing essential ATM features within the simulator, such as balance inquiries, cash
withdrawals, fund transfers, and PIN verification. These functionalities will be replicated
as closely as possible to mirror real-world ATM operations, ensuring that the system
provides a realistic experience for users.
ii. User Interaction and Interface Design: The study will focus on creating an intuitive and
user-friendly interface that caters to users of varying technical proficiency. The scope
includes analysing user behaviour, identifying potential usability issues, and refining the
interface to make ATM operations straightforward and accessible, particularly for those
unfamiliar with digital banking systems.
iii. Training and Educational Applications: A major focus of the study is the application of
the ATM Simulator for training purposes. The system will be used to educate users, such
as students, banking professionals, or first-time ATM users, on how to perform various
 transactions. The simulator will also serve as a tool to teach users about security protocols
and safe ATM practices, reducing the risk of fraud and financial mistakes.
a. Software Testing and Development: Another key aspect of the study is providing
a platform for software developers to test new ATM features, updates, and security
measures before they are deployed in real-world environments. The scope covers
testing for software bugs, performance issues, and security vulnerabilities within a
controlled, risk-free environment.
b. Security and Fraud Prevention: The study will explore the simulation of security
features, such as PIN encryption, biometric authentication, and fraud detection
measures. The simulator will be designed to include training on how to use these
security measures effectively, as well as testing how they respond to potential
threats, like phishing attempts or unauthorized access.
c. Research on Emerging ATM Technologies: The scope includes investigating and
testing new ATM technologies, such as contactless transactions, mobile banking
integration, and biometric authentication. The study aims to assess the usability,
security, and practicality of these innovations, providing valuable insights for future
ATM development.
d. Limitations of the Simulator: The study will also outline the limitations of the
ATM Simulator, particularly in comparison to real-world ATMs. The simulator is
intended for educational and development purposes and may not fully replicate the
physical hardware or external environmental factors affecting live ATM
transactions.

The scope of the study for the ATM Simulator System covers the design, development, and
implementation of core ATM features, user training, software testing, security enhancements, and
the exploration of emerging technologies. It aims to provide a comprehensive and controlled
platform that addresses both educational and practical needs in the realm of ATM usage and
development.
1.5 Methodology
1.5.1 Architectural Design of the ATM Simulator

Fig.1.1 Architectural Design of the ATM Simulator

Fig.1.1 explains The ATM transaction process, breaking down the components and how they work
together:

i. User: The user is the individual who initiates an ATM transaction, typically a bank
customer with an account linked to a debit or credit card. The user interacts with the ATM
by inserting their card, entering their personal identification number (PIN), and selecting
a specific transaction such as withdrawing, depositing, or checking their account balance.
The user is the central actor in the process, as the ATM transaction is conducted on their
behalf.
ii. ATM: The ATM (Automated Teller Machine) is a self-service banking terminal that
allows users to perform various financial transactions. The machine consists of several
important components: a card reader to read the user’s card, a keypad or touchscreen for
entering information, a cash dispenser for delivering money to the user, and a printer for
providing receipts. The ATM serves as a gateway between the user and the bank’s central
system, facilitating secure and automated financial interactions without the need for a
human teller.
iii. User Interface: The user interface is the part of the ATM that the user interacts with
directly. This interface typically includes a display screen, keypad or touchscreen, and a
receipt printer. The display screen shows transaction options and prompts the user to take
specific actions, such as entering their PIN or selecting a transaction type. The user
interface guides the user through the transaction process and provides feedback, such as
transaction approval or errors, making the experience intuitive and user-friendly.
iv. Cash Card: The cash card is the bank-issued debit or credit card that the user inserts into
the ATM to initiate a transaction. This card contains essential account information, stored
on a magnetic strip or chip, which allows the ATM to identify the user's account. Once
inserted, the card enables communication between the ATM and the bank’s system,
facilitating access to the user’s account for withdrawals, deposits, or balance checks. The
card also serves as a security measure, ensuring that only authorized individuals can access
the account.
v. Communication Link: The communication link is the secure connection that allows the
ATM to communicate with the bank’s central system. This connection, which can be
wired or wireless, uses encryption protocols such as SSL (Secure Socket Layer) to ensure
the safety and privacy of the data being transmitted. Through this communication link,
the ATM sends requests for card verification, account balance checks, and transaction
approvals to the bank's servers. It ensures that the necessary information is exchanged
efficiently and securely during the transaction process.
vi. Database: The database is the bank's central repository that stores all customer
information, including account balances, transaction histories, and card details. When a
user initiates a transaction, the ATM communicates with this database to verify the validity
of the cash card and ensure there are sufficient funds in the account. The database is
 responsible for processing card authorizations, updating account balances, and recording
transaction details for future reference. It plays a critical role in ensuring accurate and
secure management of financial data.
vii. Account: The account refers to the user’s bank account linked to their cash card. This
account holds the user’s funds and transaction records. During an ATM transaction, the
machine checks the balance of the account to determine whether the user has enough
funds to complete a withdrawal or deposit. The system updates the account in real-time,
reflecting any changes in the balance or transaction history immediately after the
transaction is completed. The account is central to the financial transaction as it defines
the user’s available resources.
viii. Customer: The customer is the person who owns the bank account associated with the
cash card and initiates the transaction at the ATM. The customer uses the ATM for a
variety of purposes, including withdrawing cash, depositing funds, checking account
balances, or transferring money between accounts. As the primary participant in the
transaction, the customer’s credentials and actions are verified and authenticated by the
system to ensure that only authorized users can access and perform actions on the account.
ix. Card Authorization: Card authorization is a crucial security process that verifies the
legitimacy of the cash card inserted into the ATM. During this process, the system checks
whether the card is valid, not expired, and not reported as lost or stolen. It also verifies
that the user has entered the correct PIN and that there are sufficient funds in the account
for the requested transaction. Card authorization ensures that the transaction is secure and
that only authorized users can access the account, preventing fraud and unauthorized
access.
x. Transaction: The transaction is the specific action that the user performs at the ATM.
Common transactions include withdrawals, deposits, balance inquiries, and fund
transfers. For example, if the user requests to withdraw cash, the ATM will ask for the
amount, verify if the account has sufficient funds, and then dispense the cash. The
transaction involves multiple steps, including user input, system verification, and
execution of the requested operation. Once the transaction is completed, the system
updates the user's account and provides a receipt summarizing the details.
 xi. Cashier Station (Optional): In some ATM setups, particularly in bank branches or larger
financial institutions, there may be an optional cashier station nearby. This station allows
a human cashier to assist customers with issues that may arise during the ATM transaction,
such as card retrieval problems, transaction failures, or other technical difficulties. The
cashier can manually process transactions or provide guidance, offering an extra layer of
support for customers who may need it. This is especially useful in cases where the ATM
cannot complete a transaction on its own.
xii. Overall Process Flow: The overall process begins when the user inserts their cash card
into the ATM. The machine reads the card’s data and securely communicates with the
bank’s database to verify the card and check the account balance. The user is then
prompted to enter their PIN, which is verified to ensure the correct person is accessing
the account. After the PIN is confirmed, the user selects a transaction, such as a
withdrawal or deposit, and enters the necessary details. The system checks if the user has
enough funds for the requested transaction. If authorized, the ATM either dispenses the
requested cash or accepts the deposit. The bank's database is updated in real-time with the
transaction details, and the ATM generates a receipt to summarize the operation.
Throughout the process, encryption and secure protocols protect the transaction from
security threats like fraud or unauthorized access. The entire system relies on a
combination of secure communication, real-time updates, and multi-step verifications to
ensure the transaction is accurate and secure.

1.5.2 Class Diagram of the ATM System

The class diagram is a static diagram. It represents the static view of an application. Class diagram
is not only used for visualizing, describing, and documenting different aspects of a system but also
for constructing executable code of the software application. This class diagram describes the
classes and attributes in ATM operations. The class diagrams are widely used in the modeling
object-oriented systems because they are the only UML diagrams which can be mapped directly
with object-oriented languages.
 Fig 1.2 Class Diagram of the ATM System

The ATM system UML diagram outlines the relationships and responsibilities of key classes
involved in the design. The ATM class represents the physical machine that customers use to
perform transactions such as withdrawals, deposits, and balance inquiries. It holds essential
attributes like the account number and PIN entered by the user. The ATM interacts with other
classes, primarily Customer Account and System Database, to verify user credentials and process
transactions. A key method, is User Authenticated (), ensures that the customer’s entered PIN
matches the one stored in the system, allowing the transaction to proceed.

The Customer Account class holds details specific to individual customer accounts, such as the
account number, PIN, available balance, and total balance (which includes pending transactions).
This class plays a crucial role in maintaining accurate financial data and ensuring secure access to
accounts.
The System Database class serves as a central repository that manages all customer account data
and transactions. It is responsible for authenticating users through the authenticate User() method,
retrieving available balances via get Available Balance(), and updating account balances after
transactions through the update Balance() method. This class interacts closely with the Customer
Account and Transaction classes, facilitating secure and efficient management of account
information and transactions.

The Transaction class represents a specific financial operation initiated by the customer, such as
withdrawing or depositing money. Each transaction is associated with a particular account via the
account Number attribute. The main method, execute Operation(), performs the required task based
on the user’s input, such as deducting the amount from the account for a withdrawal or updating
the account in the System Database.

The relationships between these classes reflect the system’s structure. The ATM has a one-tomany
relationship with Customer Account, as one ATM serves multiple customers. The System Database
also has a one-to-many relationship with Customer Account and Transaction, managing numerous
accounts and transactions. Each Transaction is tied to a single Customer Account, ensuring that
operations affect only the correct account.

In summary, this design demonstrates how the ATM, Customer Account, System Database, and
Transaction classes work together to facilitate secure and accurate banking services. These
relationships ensure that multiple customers and transactions are efficiently handled while
maintaining the integrity and security of the system.

1.5.3 Use case diagram of the ATM System

The use case partition the functionality of a system into a small number of discrete units, and all
system behavior must fall under some use case. Each use case should represent a kind of service
that the system provides, something that provides value to the actor. A particular person may be
both a bank teller and the customer. For the ATM application, the actors are Customer and
Database.
 Fig 1.3 Use case diagram of the ATM System

1.5.4 Database ER Diagram

ER Diagram stands for Entity Relationship Diagram, also known as ERD, is a diagram that displays
the relationship of entity sets stored in a database. In other words, ER diagrams help to explain the
logical structure of databases. ER diagrams are created based on three basic concepts: entities,
attributes, and relationships.

ER Diagrams contain different symbols that use rectangles to represent entities, ovals to define
attributes and diamond shapes to represent relationships.
 Fig 1.4 ER Diagram

1.6 Research Design

The Research Design for an ATM Simulator System focuses on developing a system that replicates
the functionality of a real-world ATM within a controlled environment. The main objective is to
simulate essential ATM operations such as user authentication, balance inquiries, withdrawals,
deposits, and transfers while ensuring secure data management and user-friendly interaction. The
need for such a simulation is established to enhance understanding of ATM processes, facilitate
testing of new features, and serve as a training tool. The system aims to replicate both the hardware
(e.g., card reader, cash dispenser) and software (e.g., transaction processing, security protocols)
aspects of an ATM, with an emphasis on user experience, transaction accuracy, and security
measures.
The research methodology begins with system analysis, studying existing ATMs to identify core
functions and potential areas for improvement. A use case-based design will map interactions
between users and the system, supported by class, sequence, and activity diagrams to outline
system behaviour. The development phase will use a programming language like Java or Python,
incorporating encrypted communication and user authentication to ensure security. The system will
be rigorously tested for different transaction types, user scenarios, and error conditions, with user
feedback driving further improvements.

Ultimately, the project aims to deliver a fully functional, secure, and efficient ATM simulator
capable of handling real-world constraints like network delays and transaction errors. It will serve
as a valuable tool for educational purposes, testing, and system development, providing insights
into ATM functionality and reliability.

1.7 Data Collection Method

The Data Collection Method for the ATM Simulator System focuses on gathering both qualitative
and quantitative data to evaluate the functionality, usability, and security of the simulator. This
method involves a combination of user feedback, transaction logs, and system performance metrics
to ensure the simulator mirrors real-world ATM operations effectively.

i. User Testing and Feedback: A key part of data collection is observing users as they
interact with the simulator. A sample group of users will be selected to perform various
transactions such as withdrawals, deposits, balance inquiries, and fund transfers. Their
interactions will be monitored to assess the usability of the interface, ease of navigation,
and the system’s responsiveness. After using the simulator, users will provide feedback
through structured questionnaires or interviews, focusing on areas such as ease of use,
security features, and overall experience.
ii. Transaction Logs: The simulator will generate logs for every transaction processed,
capturing important data such as transaction type, amount, time taken, and any errors
encountered (e.g., incorrect PIN entries or insufficient balance). These logs provide
quantitative data on system accuracy and performance under different conditions.
iii. System Performance Metrics: Performance-related data will be collected to measure the
simulator's speed, reliability, and ability to handle multiple users. Metrics such as response
 times, system load during peak usage, and error rates will be analysed to identify potential
bottlenecks or areas for improvement.
iv. Security Testing: Data will be gathered through security tests to evaluate the effectiveness
of authentication methods, encryption protocols, and fraud detection mechanisms. This
includes simulating various security threats, such as unauthorized access or transaction
tampering, to assess how well the system protects sensitive user data.

By combining user feedback, transaction logs, performance metrics, and security testing data, a
comprehensive understanding of the ATM simulator’s functionality and areas for enhancement can
be achieved.

1.8 Sampling Method

The Sampling Method for the ATM Simulator System is crafted to ensure a broad and
representative selection of users for thorough testing and evaluation. The approach combines
random sampling and stratified sampling to capture diverse user experiences and behaviors.
Random sampling will be used to select participants from the general population, ensuring a variety
of backgrounds and familiarity levels with ATMs. This method provides unbiased data on general
user interactions with the simulator. Additionally, stratified sampling will categorize participants
into specific groups based on age, occupation, and familiarity with digital banking. This includes
young adults, middle-aged users, senior citizens, office workers, students, business owners, and
retirees, as well as first-time and regular ATM users. By proportionally sampling these groups, the
study will gain insights into the usability, security, and efficiency of the simulator across different
demographics. A sufficiently large sample size will be chosen to maintain statistical validity,
ensuring that the findings are generalizable and representative of a wide audience. This mixed
sampling approach enables comprehensive testing of the simulator, addressing both general and
specific user needs to enhance its overall functionality and user experience.
1.9 Data Analysis Tools
The Data Analysis Tools for the ATM Simulator System are essential for evaluating the system's
performance, usability, and security. These tools enable the systematic collection, processing, and
interpretation of data gathered from user interactions and system operations.

i. Statistical Analysis Software: Tools such as SPSS or R will be used to perform

quantitative analysis on user data. These tools can process transaction logs, analyse error
rates, and assess performance metrics like response times and system load. Statistical
methods will help identify patterns, correlations, and anomalies, providing insights into
the system's reliability and efficiency.
ii. User Experience (UX) Analysis Tools: Software like Usability Hub or Hotjar will be
utilized to evaluate user feedback and interaction data. These tools offer features for
tracking user behaviour, such as click patterns and session recordings, and conducting
surveys to gather subjective assessments of the simulator’s usability. This analysis helps
in understanding user satisfaction and areas for interface improvement.
iii. Security Analysis Tools: Tools such as OWASP ZAP or Burp Suite will be employed to
conduct security assessments of the simulator. These tools help in identifying
vulnerabilities, testing encryption protocols, and verifying the robustness of authentication
mechanisms. Security analysis ensures that the simulator maintains data protection
standards and safeguards against potential threats.
iv. Performance Monitoring Tools: Performance monitoring tools like New Relic or
Datadog will track system metrics in real-time, including transaction processing times,
server response times, and system resource usage. This helps in assessing the simulator’s
performance under various conditions and identifying any bottlenecks or areas for
optimization.
v. Data Visualization Tools: Tools such as Tableau or Microsoft Power BI will be used to
create visual representations of the data collected. Visualizations like charts, graphs, and
dashboards make it easier to interpret complex data sets, highlight trends, and present
findings in a clear and accessible format.
By integrating these data analysis tools, the ATM Simulator System can be comprehensively
evaluated, ensuring that it meets performance, usability, and security standards effectively.