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Pentesting an ATM OS upgraded from Windows XP to Windows 7

How to approach penetration testing of a ATM OS that was upgraded from Windows XP to Windows 7? From what I gather, the testing flow should be as follows: Architectural Review Pentesting OS and ...
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PIN encryption in ATM machines

Do ATM machines encrypt the card PIN after it is entered using the key pad? if yes, what is the encryption algorithm used?