Check and Signature Fraud Prevention – Challenges and Resolutions Introduction Payments are a fundamental part of the everyday life of our consumer culture and global economy. Payments are the engine that drives all forms of economic activity, affecting all businesses, organizations and consumers. Today we can choose from multiple payment options for any transaction: cash, checks, plastic cards, automated credit transfers, direct debits, online banking, mobile payments, etc. Regardless of payment method, consumers expect it to be secure and reliable. Financial institutions and other payment processors must be service- oriented and committed to providing a variety of modern, user-friendly, efficient, and convenient payment options to customers in a time when exposure to payment fraud is greater than ever before. Payment fraud affects existing and emerging types of payment and has become one of the greatest challenges facing virtually all businesses and financial institutions. The 2011 ABA Deposit Account Fraud Survey estimates check-related losses at $893 million.1 There are numerous ways these losses can occur as a result of forgery, counterfeiting, alterations, kiting, and embezzlement. Every time a new innovation is applied to an existing method of payment, or a new payment option is introduced, it leads to new methods and schemes by criminals to perpetrate fraud. The situation may look like a vicious circle, but through analysis of breaches in each payment mechanism, a comprehensive approach to fraud control measures, and awareness and use of the most current technological defenses against fraud, payment system participants may significantly reduce risk and help avoid financial losses. An example of an innovation that offers an all-around defense to one of the most vulnerable payment methods – checks – is a check recognition solution comprised of image analysis and pattern recognition technology. 6273 Monarch Park Place, Longmont, CO 80503 USA | T: 303.381.3100 toll free: 888.225.0169 parascript.com 2 | F: 303.381.3101 [email protected]