KeyBank uses Falcon to spot dud cheques
29 November 2000 | 1816 views | 0
KeyCorp subsidiary KeyBank is to use Falcon Cheque, a neural network-based fraud detection system from HNC Financial Solutions, to protect its account portfolio from criminal transactions.
Executives from KeyBank selected the system after a successful implementation of HNC's Falcon software in its payment card operations.
According to the National Check Fraud Center in Charleston, cheque fraud and counterfeiting are among the fastest-growing problems affecting the US financial system, producing estimated losses of $10 billion annually. According to a recent report issued by American Banker, losses from cheque fraud are estimated to grow by 2.5 percent annually over the next few years.
Falcon Cheque runs in the bank's cheque processing centre and uses neural networks and HNC's proprietary behavior profiling technology to uncover fraud on all types of cheque transactions, including savings account, ATM, ACH, and online banking. The system can address in-stream, off-line batch, and real-time processing paths, says HNC. When suspect-cheque data is uncovered, it is routed to the bank's existing remedy systems. Falcon Cheque is delivered with an algorithm for bottom-line return optimisation, ranking out-sorted fraud cases in the order of potential dollars saved.