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Co-operation and systems integration: key to improved security for the banking industry

The banking industry has special, and in many cases unique, security requirements. It is also an industry with common ground and interests, in terms of operations and services as well as cash handling, processing, dispatch and receipt. Here, Dr Bennie Coetzer, joint managing director of Thales Advanced Engineering, discusses options for improving security in the industry.

Improved security is undoubtedly one of the critical goals that retail and commercial banking groups set themselves every year. The snag is that the problem does not seem to go away. It is a hardy annual on the banking agenda.

Banks by their very nature present a broad spectrum of security challenges ranging from staff and customer security in their retail outlets, to ATM security in public places and cash handling, counting and delivery.

The requirements of banks across the industry are very similar. They generally experience and have to deal with the same security issues. They could undoubtedly obtain better security through the integration of security systems. The question needs to be asked: why is the industry, in spite of having a national banking security body representative of all banks, not able to put together a team tasked with the design and implementation of security systems to meet the specific needs of the industry?

The level of security required is such that automated CCTV surveillance systems of high quality and capability are essential. The high-end solutions are expensive and an off-the-shelf system will never achieve the desired results at an affordable cost. However, if the banks co-operated to establish a banking sector security benchmark, it would then be possible to develop a systems design standard to cover their special needs, and the shared costs would be very affordable.

Many banks still spend money on off-the-shelf systems (offering mild excuses about cost, support and so on) without taking the bull by the horns and specifying, designing, developing and acquiring a system that really deals with the industry's unique security problems, both intra- and inter-site. Individual solutions within a bank are different for cash handling, public security, cash-in-transit, and other processes. While these are of course different, they address the same issue and need to form a comprehensive security system with appropriate information exchange between sub-systems. The solution is not to appoint a consultant for each bank, nor even one for all the banks, but rather the formation of a task team consisting of security personnel representing the banks, technical specialists able to translate requirements into technology and system engineers able to define and design comprehensive systems, software and hardware.

Banks deal with large amounts of cash. The scale of cash involved dictates that there should be an appropriate protective element on the basis that if the reward is large enough, the resources and planning applied to the theft of such a consignment will be of similar proportions.

Cash-in-transit

CCTV cameras can be concealed within a cash-in-transit vehicle and externally to monitor and record events around the vehicle. Suspicious activity can be detected and monitored, registration plates recorded with sufficient detail and transmitted with adequate bandwidth to observation centres, much in the manner that street surveillance systems are successfully operating.

The images captured and transmitted to the observation centre can be used proactively. For example, to summon a helicopter in the event that an attack on the vehicle appears imminent or commences, or if the vehicle stops when it should not be stopping. At least those concerned would know the instant an incident commences so there is a much better chance of apprehending the perpetrators and recovering the cash intact.

Cash processing

Cash handling and processing is another area where the industry could benefit from having national standardisation on the auditing systems applied by banks to their cash handling processes. Here the problem is essentially internal, involving people who know the procedures and processes.

A quick and effective audit process is needed to detect any variance once the counting process for any consignment of cash is completed. Should there be a shortfall, then recorded images from the CCTV system of the counting process need to be checked to identify any possible incidence of theft. The recording of high-resolution images of a quality that will enable observers to pick up sleight-of-hand is required. This requires specialised equipment and highly trained observers and it is the type of operation where national standardisation in cash handling procedures and security systems would lead to significant benefits for the entire banking industry.

Currently, a number of systems are in place to facilitate cash handling between the major players involved in the ongoing cash distribution and return cycle - the Reserve Bank, the commercial banks and large retail outlets that do significant business in cash. The major problem with money deliveries and collections is the question of liability of any one entity that handles the cash between two points. It makes sense that such a CCTV system be standardised and approved by all participants in the industry.

The exchange of money between branches or banks has security requirements that are common across all banks. Safe areas with good physical security, the ability to identify the vehicles and the drivers as well as the close monitoring of arrival timings are among the basics. But to improve security levels banks need to co-operate closely and exchange information - what better way to achieve this than by inter-changeable digital information that is exchanged within a standards based system?

If a retailer claims to have delivered R1,5 million in cash to its commercial bank partner and the bank claims that its count reveals a shortfall of R100 000, how does either party conclusively prove it is right and the other is wrong? Standardisation of the auditing systems applied to cash handling by all players in the chain combined with minimum industry-approved and recommended specifications for the integrated electronic CCTV surveillance and data capture systems used for security, is likely to minimise the risk of disputes and where such disputes do occur, allow them to be resolved quickly and cost-effectively.

Should the industry implement a process to develop standards that are accepted and adhered to by the industry overall, then the results that emerge from the investigations into any dispute must also find acceptance with all of the parties involved.

Public area safety

There are a number of other security areas for banks such as public entry to and exit from the bank foyer where security needs to be visible but subtle, the monitoring of ATM localities, monitoring of staff and cashiers and the central holding and dispensing area behind the tellers. All of these areas can be made more secure by CCTV-driven observation systems and all could benefit from inter-bank co-operation and the development of industry standards.

Security process

Key areas for defining a suitable integrated electronic CCTV surveillance, digital recording and data capture system revolve around four distinct capabilities: initial incident detection, recognition/interpretation, positive identification and detailed image analysis.

System specifications

A R200 note can be flicked off the counting table in a fraction of a second. Therefore the images have to be of a quality that will guarantee detection and a successful prosecution. Standards come into play when it is considered that picture quality is the sum of many parts and factors such as rapid frame rates, shutter speed, exposure, variable light conditions and freeze frame clarity need to be within certain parameters to structure a system that will achieve the desired results.

System design has to be modular to cater for future expansion and for the integration of all other security aspects, including non-visual information such as shipment identification and the contents data in order to provide a total surveillance solution. The system should also allow integration of the digital data systems on the electronic processing machines that are used so that this detail is available on the stored digital video footage.

While these systems are high-level, they can be configured to be user-friendly and simple to operate. Digital storage of very high quality images ensures a complete and clear audit trail is available to verify events and to prove or disprove a fraudulent event. The stored information, whether it is video images or data, is also remotely accessible by the management concerned.

Systems can also be automated but this will only be possible in a meaningful way if the industry agrees on standard requirements, systems specifications and procedures.

Clearly there are many aspects to deal with. However, we have in South Africa (and in many banks) experts in security; we have technical experts capable of designing comprehensive, industry-wide solutions; we have access to the most modern technology available and so on. Why then do we lack the ability to deal with a problem in a comprehensive manner, one that will save us more in the long run than what we are trying to save by avoiding the issue?

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