Biometric verification system is the crux of almost every security mechanism these days and failure of a biometric system can lead to grievous issues. The objective of this study is to identify the consequences when biometric verification fails during ATM transaction and hence suggest a novel enhancement mechanism for it. The security of ATM transactions can be further strengthened using the PII (Personal Identification Image) method. The proposed security algorithm is called OTPIP (One Time Password using Image Processing) and involves two phases. The first one is a verification phase which is done using biometric systems. In case of failure of biometrics, code verification is done. This is followed by the PII phase. These two phases ensure two-tier security of ATM machine and thereby introduce a foolproof safety mechanism.