Source: Mitek Systems
Mitek Systems, Inc. (BULLETIN BOARD: MITK), a leading provider of forgery detection solutions and recognition technologies, announced the availability of its FraudProtect System.
FraudProtect System is an automatic, innovative, image-based solution that helps community and mid-sized banks to quickly and effectively combat the two most common forms of check fraud, signature forgery and counterfeit checks. According to the ABA, forgeries, counterfeits and altered checks together, account for nearly forty percent of all check frauds reported in the U.S.
In the post Check 21 image-exchange environment, accurate manual detection of check forgery will become extremely difficult. Upon truncation of the paper check, review of physical security features such as micro-printing and ultraviolet features will no longer be possible. Mitek's FraudProtect System is image-based, hence it has the ability to detect all kinds of fraudulent features within check images.
"With the advent of Check 21, fraud is expected to become an even greater threat to financial institutions," said John Askew, check fraud expert and Partner, PSI Fraud Solutions. "Additionally, community banks are expected to be a more frequent target of fraudsters, because they often lack a sophisticated fraud-detection solution. Community and mid-sized banks looking to significantly reduce check fraud losses and improve customer service, need to examine technology platforms like Mitek's FraudProtect System that automatically detects fraudulent checks."
First Western Bank and Trust, a full-service community bank based in North Dakota, has recently installed the FraudProtect System. "We used to manually review checks for fraud, concentrating on high-dollar amounts. We are now able to automatically review checks over any dollar limit we set," said Mr. Kerry Stone, Data Processing Manager at First Western. "As a result, we are able to catch fraudulent checks that were never caught on time in the past."
"The system is very easy to use and enables us to make quick Pay-No Pay decisions. Perhaps one of the most incredible features of the system is the fact that we were able to install and complete user training in less than a day," he added.
Relying on patent-pending technology, FraudProtect System enables an institution to make timely pay or no pay decisions. The system can automatically catch as much as 90 percent of counterfeit checks and signature forgeries without relying on signature cards, significantly reducing a bank's check fraud losses. Using FraudProtect System, financial institutions have the capability to analyze two to four checks per second or more than 8000 checks an hour using a single PC.
"Financial institutions are losing millions of dollars each year to unsuspecting fraudsters that continue to cash and deposit fraudulent checks," said Jim DeBello, CEO and president of Mitek Systems. "While most of the larger financial institutions have responded by implementing sophisticated defense systems, many community and mid-sized banks remain a vulnerable target for thieves. We realized a significant need in the marketplace for a forgery detection solution specifically for mid-sized and community banks. In response, our engineers and scientists created the image-based FraudProtect System, designed to enable community and mid-sized banks to review all incoming checks everyday instead of only high-value items. This will not only eliminate losses due to check fraud but will also reduce labor costs significantly and increase operational efficiency."
The system has currently been deployed with Harland's CheckQuest system and is designed to easily integrate with any item processing or imaging system at a bank. Installation and user training can be completed as quickly as 24 hours.