IJISET - International Journal of Innovative Science, Engineering & Technology, Vol. 1 Issue 10, December 2014. www.ijiset.com ISSN 2348 – 7968 584 Secured Banking operations with face-based Automated Teller Machine Olutola Fagbolu 1 , Olumide Adewale 2 Boniface Alese 2 and Osuolale Festus 2 1 Department of Computer Science, The Polytechnic Ibadan, Ibadan, Oyo State, Nigeria 2 Department of Computer Science, Federal University of Technology Akure, Akure, Ondo State, Nigeria Abstract With the introduction of the newest Automated Teller Machine (ATM) at Royal Bank of Scotland which operates without a card or authentication by entering Personal Identification Number (PIN) to withdraw cash up to £100, a more secured ATM can be designed and implemented with more secured feature of biometrics- facial recognition as PIN. Security is an indispensable issue in banking operations; with the advent of technology such as e-banking, mobile banking etc security has become an issue that needs utmost paramountcy. Principal Component Analysis (PCA) are employed in face recognition system, it seeks to capture the variations in a collection of face images and use them to encode and compare images of individual faces by using statistical dimensionality reduction method to produce the optimal linear squares decomposition of a training set and eigen faces. This research would afford the entire society more reliable ATM model and incidence of fraud which have decline the customer confidence on ATMs would be obliterated. Keywords: Personal Identification Number (PIN), biometrics, security, eigen faces, fraud. 1. Introduction Automated Teller Machines (ATMs) are increasingly used in banking operations to dispense cash with additional banking operations from deposits, withdrawals, checking current balance, point of sales of utilities and other services (Fagbolu, 2011). It is the electronic machine often found outside some banks that dispense money whenever personal coded card is inserted which provide more convenient alternatives to traditional dispensers such as bank tellers, automobile drive through facilities etc. Automated Teller Machines are computerized telecommunication device that provides bank customers method of performing financial transactions in the public places without the need for human clerk or bank teller (an employee of a bank who deals with customers who are often referred to as cashier) (Wikipedia, 2012). ATM is an electronic cash machine that enables customers to withdraw paper money or carry out other banking transaction on insertion of an encoded plastic card (Encarta 2010). ATM often provide one of the best possible official exchange rates for foreign travelers that is if the currency being withdrawn from the ATM is different from that which the bank account is denominated in for example, withdrawing Ghanaian Cedis from a bank account containing Nigeria Naira, the money will be converted at an official wholesale exchange rate. Crime at ATMs has become a nationwide issue that faces not only customers but bank also and hence need for security measures at banks must play critical contributory role in preventing attacks on customers which brought about the proposition of design of face based ATM. To illustrate the banking industry’s understanding of the dangers posed to ATM customers a different approach to its operation and design are proposed in this research work although there are many more safety measures put in place for today’s technology of ATM but proposed technology would offer cost effective technology and eradicate security breaches and prevent unnecessary expenditures. ATMs has brought about succour to Nigerian banking environment as long queues in banking halls has began to wane but all forms of security challenges encountered has made it to be an option between the devil and deep blue sea. Facial recognition system are computer-based security system that are able to automatically detect and identify human faces which began in the late 80s and were introduced to football fans at 2004 Super Bowl (Thanh and Warren, 2006). ATM requires a user to pass an identity test before any transaction can be granted and the current technology uses the smartcard to access and control its operations but with associated problems ranging from duplication, loss, stolen cards and impersonation and these problems can be addressed by using facial recognition system. In the proposed system, access will be authorized by means of human face picture taken by camera. This system will however bring relief to