Product Life Cycles and Crime: Automated Teller Machines and Robbery

Abstract

Products attractive to thieves, such as cars and VCRs, are said to go through a life cycle of vulnerability such that risks are highest when the products are heavily in demand among consumers but before security measures have been retrofitted. This paper suggests that the life-cycle hypothesis might also apply to new modes of service delivery such as automated teller machines (ATMs). Following a brief history of ATMs in the United States, case studies are presented of the effectiveness of legislation establishing security standards for ATM facilities in New York City and Los Angeles. Substantial decreases in ATM robberies were found without any evidence of displacement. Implications for government and industry are discussed.