JPMorgan Chase is to roll out Fiserv's cheque fraud detection system, Positive PayPlus with Secure Seal, to its corporate customers.
The product allows banks to save encrypted data, including payee's name and issue date, directly onto the face of a cheque in a 'Secure Seal', which can later be decoded and compared with payment information.
Edward Regina, vice president, JPMorgan Treasury Services, says the software detects whether a payee's name has been changed.
"If we catch a fraudulent cheque within a 24 hour period of it being presented to us, it can then be returned to the bank of first deposit with no loss to our customer," he says.