Unisys has launched a barcode-style system designed to detect the fraudulent alteration and counterfeiting of large corporate cheques.
The Unisys e-@ction Payment Document Security Solution, utilises PayBond, a patented technology from Payformance Corporation that protects the information printed on corporate cheques or other negotiable documents with a secure barcode.
The barcode is embedded on the face of the cheque during the printing process and encrypted by a private key. The cheque issuer sends a public key to a key management service. This key is requested by financial institutions to decrypt data locked in the barcode.
Gary Wallen, vice president and general manager, Unisys Payment Systems says: "Because the PayBond authentication process starts from the image of the cheque, it can be combined with any brand of item processing equipment, not just Unisys."
He says the system can be implemented in such a way as to facilitate an automated and authenticated positive pay style of application without having to send multiple data files back and forth.
US figures suggest that cheque fraud losses are running at $20 billion annually and rising.