New AI-powered service fights check fraud
Mitek, a global leader in mobile capture and identity verification software solutions, introduced Check Fraud Defender. This is the first artificial intelligence-powered, cloud-hosted consortium for financial institutions to counteract check fraud. An important addition to a financial institution’s fraud-fighting protocols, Check Fraud Defender helps protect against the growing sophistication of check fraud attacks.
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“With Check Fraud Defender, participating financial institutions will have a powerful new signal that will enable them to reduce fraud losses and false positives”
A report by the American Bankers Association shared in January 2020 reveals how much fraud banks defend against each year. According to the report, total attempted check fraud increased to $15.1 billion and accounted for 60% of attempted fraud against deposit accounts. The leading check fraud categories were counterfeit checks, forged signatures, and return deposited items.
Trusted technology uses modern image science
Backed by more than 35 years of expertise in digital image capture, mobile deposit and identity solutions, Mitek’s Check Fraud Defender detects forgeries otherwise missed by traditional tools. The service analyzes checks deposited from all channels – mobile, in-branch and ATMs. With Check Fraud Defender’s patented computer vision technology, financial institutions have a higher degree of confidence in fraud detection.
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Check fraud is on the rise, and financial institutions see their existing fraud detection processes generate mountains of false positives. This causes them to hire more and more people to sift through false positives in search of fraud, costing significant time and money.
“With Check Fraud Defender, participating financial institutions will have a powerful new signal that will enable them to reduce fraud losses and false positives,” said Michael Diamond, Mitek SVP and General Manager. “In a world where AI and machine learning yield huge benefits, we have a better way forward.”
Mitek’s latest innovation helps financial institutions continue to stay ahead of the fraudsters. One of the top 25 US financial institutions has already licensed Check Fraud Defender and three more are currently using the underlying technology. One of the largest U.S. banks has already experienced up to a 90% savings in manual review time following its initial deployment.
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“Although check issue volumes continue to decline, check fraud continues to be a major challenge for financial institutions in the U.S.,” says Shirley W. Inscoe, Aite Group Senior Analyst. “Automating more check fraud detection and lowering false positives (that require manual reviews) can decrease operational costs as well as fraud losses.”
As seen in Mitek’s recent acquisition of ID R&D, Mitek is constantly innovating to provide a range of mobile capture and identity verification solutions to build trust in the digital world. Check Fraud Defender combines the power of Mitek’s mobile deposit and check imaging products with its SaaS-based delivery and fraud-detection identity verification solutions.
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