http://www.codesandciphers.org.uk/lorenz/fish.htm
Germany created a new way of enciphering at that time. The pattern of the Vernam cipher is akin to logic, but it isn't random. Therefore, they tried to make it like random, but British still broke it by a mistake the German operator made. The operator sent the same message of about 4,000 letters in it again with the Lorenz machine. However, there were some differences between them. And British decipherers can compare them and recover them and break the code.
This is the Lorenz machine, which is also known as "Tunny Machine"
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Here is a website about enigma:http://en.wikipedia.org/wiki/Enigma_machine
The enigma machine was invented in Germany at the end of WWI, but it was used commercially.
The plugboard, keyboard, lamps, and finger-wheels of the rotors emerging from the inner lid of a three-rotor German military Enigma machine
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This is a video shows how enigma works:
The enigma enciphers codes randomly. There are three rotors in it changing the result of typing the same word. Furthermore, there are about 100,000,000,000,000 possibilities of each letter. Therefore, it is difficult for someone to break the enigma code.