In existing ATM system, most often only personal identification number (PIN) is used to verify authentic user which is not secured enough as it is very easy to copy. Sometimes thieves have a very strong way to steal account information, that's why bio-metric verification system can be a firm solution. The objective of this paper is to provide a more secured method using bio-metric features and message authentication technique. In our proposed method, PIN verification is combined with fingerprint recognition, to identify a customer during ATM transaction. Fingerprint is verified using efficient minutiae feature extraction algorithm. To assure the security while doing transaction through swipe machine, the client will confirm the transaction by an approval message through GSM technology. In both cases, location will be identified through GPS. If any illegitimate person tries to use the card it will automatically be blocked by the system and detail information will be sent to the customer through the message. Hence, the proposed method will provide more security by identifying and reducing the frauds.