t takes planning and participation for any business conference to be successful - especially when it's the first major gathering of a new group. In both categories, the first ATM Industry Association (ATMIA) Summit & Awards, which took place Nov. 13-15 in San Diego, got a thumbs-up. The schedule was flawless and flowed smoothly. The attendance figures: 260 attendees and 25 exhibitors.

"We didn't expect as many to come as did," said Mike Lee, Executive Director of ATMIA. "It has exceeded our expectations. We have seen new and old faces from around the globe."

Lee has served as Executive Director for two years. He has been based in London but soon will relocate to South America, where he will oversee all four global chapters of ATMIA.

"I love the cross-pollination between countries and cultures," Lee said. "Our industry is a life cycle representing different areas."

When ATMIA was formed in 1998, its members set out to form an alliance committed to "the global advancement and proliferation of automated teller machines," according to its mission statement. Today, there are international chapters in the United Kingdom, Canada, South America, Australia, South Africa and Russia. It is the only international ATM trade organization exclusively devoted to everything ATM.

Two highlights of the ATMIA 2002 Summit were the keynote address, "Industry Update - ATM Fraud," and the well-attended seminar, "ATM Integrity."

Susan A. Zawodniak, Vice President of NYCE Corp. and Executive Director of the NYCE Network, delivered a sharp, well-documented presentation on what the ATM marketplace is facing. In a nutshell, fraud is on the rise, crooks are getting more sophisticated, and the detection of, protection from and cure for fraud will require all industry professionals to work together to maintain consumer confidence.

Zawodniak effectively presented a summary history of ATM fraud in the U.S. followed by a series of different approaches to fraud; recommended actions to take by acquirers, issuers and processors; future targets; industry initiatives being discussed; and the likely outcome of all of this activity.

Of particular interest were the extraordinary slides of fraud devices found throughout the country and their level of sophistication. It included everything from the early Lebanese Loop to ATM overlays, from false front attachments to cash traps, and from entry door skimmers to internal skimmers. Even the new, highly sophisticated Ghost Skimmer was depicted in graphic detail. It was a wakeup call for many attendees.

Along similar lines, Mike Hudson, Executive Vice President and Chief Operating Officer of Tidel, presented an informative and interesting lecture on how the Electronic Funds Transaction Association is fighting for ATM integrity through the industry. Hudson is well-qualified to comment; he is leading the ATM Task Force that EFTA has formed to take on the fight.

With 36 leading ATM industry companies working in conjunction with the U.S. Secret Service, the structure and goal of the Task Force is admirable.

"We are enlisting all segments of the ATM industry to review and recommend proactive procedures and policies," Hudson said. "We all need to protect our nation's ATM infrastructure from criminal activity and fraud. We must maintain integrity and credibility."

Maintaining that integrity and credibility means the Task Force has the daunting task of researching issues, making educated observations and recommendations and ultimately presenting suggested best practices to the industry - all with the strong support and interaction of the Secret Service and the U.S. Attorney General's office. The alternative is to have the government take over the reins of regulating the industry. That's why self-policing was the buzzword heard around the room.

"Every system can be beat," Hudson said. "The Task Force is designed to combat those odds. Our goal is to provide doable best practices through constant evaluation and recommendations rather than wait until the government comes in and tells us what to do. It's all about taking the initiative to find our own internal ways to successfully combat fraud."

Suppose the Task Force can't meet that objective? Hudson said that is not even a consideration: "We're seeing a great response to critical issues. Like my company, Tidel, many other companies are recognizing their responsibility to protect the businesses we serve and the country we live in. We can create a stronger industry and a stronger market for our product. It doesn't take much of a clarion call to respond."

Answering the call is one thing. Winning the war is another, however. Could combating fraud be a losing battle? Hudson doesn't think so.

"We're definitely not fighting a losing battle. We've already won the battle," he said. "Awareness is the battle won. A lot of people are now thinking in terms of a domino effect to others in the industry. We're putting our competitive issues aside for the greater good of the industry."

Another interesting seminar was "New Opportunities and Challenges for ATM Deployers," presented by Dove Consulting. Tony Hayes, representing the company, shared details of a recent survey conducted by Dove that provided a comprehensive analysis of the state of the ATM industry, exploring both financial institution and ISO participation. It covered terminal deployment, ATM transactions, ATM functionality, surcharging trends, deployment economics and cost structures as well as opportunities to be embraced.

An unusual opportunity discussed at this seminar was the idea that ATMs need to generate alternative sources of revenue in order for the industry to stay profitable. Hayes' message: "Take the challenge. Find solutions to make your ATM a cash cow." For complete access to the survey, visit www.consultdove.com.

A sampling of responses to the convention:

• "It's been real good. We're here to build vendor relationships, establish new customer relationships and cultivate existing ones."

• "We're here to showcase our products in an intimate setting, which is much more productive."

• "We're here to see what's new, chat with colleagues and, of course, put together deals with vendors ... and we're doing it all."

Another positive comment came from Campbell Burgess, President of Core Data Resources, now a subsidiary of Concord EFS. He says his company is happy to be part of ATMIA. That happiness was especially evident after Concord received two awards.

"We are here to support ATMIA, an organization we've been affiliated with for four years," he said. "They provide better info to our industry. They proactively address issues, continue to present those issues to members and push for best practices.

"I highly recommend participating in ATMIA, especially ISOs. Our industry has issues that materially affect ISO businesses. It is important for ISOs to become aware of them and act on them. ATMIA is a very good forum for education and also to have ISOs heard by vendors."

Then there were the awards. Why do an awards banquet? "Because we all like to have our goodness acknowledged," Lee said.

While this event was the first ATMIA summit, it was the second ATMIA award ceremony. The first one, staged in early 2002 in Great Britain, focused on security-centric achievements. The formats for both were similar but not identical. In England, the ATMIA created six awards, two in each category: Best Practice, Best Technology, Best Contribution. A panel of three independent judges from three different countries then selected the winners.

In the U.S., the selection process was a bit more democratic. Nominations were open to the industry, submitted by hundreds of different companies. The Board of Directors of ATMIA short-listed the nominations. The names were sent out to the membership, and all 500-plus members were invited to vote.

The 2002 winners:

Lifetime Achievement Award:

• Ernest Burdette, President and Founder of Triton (upon acceptance, Burdette laughingly referred to it as the "Old Face Award")

ATMIA already is planning its 2003 events. Its East Coast "mother" conference is scheduled for March 4-7 in Miami. "ATMs in the Americas" is being designed to have mass appeal for ATM professionals in the U.S., Canada and Latin America.

London will be the site of ATMIA's "Optimizing European ATMs: Back to the Future" on April 14 and 15, and the "ATM Sec 03" conference is scheduled for Oct. 13-14 in London.

The 2003 ATMIA Summit and Awards is scheduled for November at a yet undecided West Coast location. For more information, visit www.atmia.com.