Check and Signature Fraud Prevention – Challenges and Resolutions which are all readily available today. Modern software allows those producing fraudulent checks to change some of the check’s information, while keeping many valid check components. Skilled counterfeits may even include an MICR line. As banks are moving to the image-enabled check processing encouraged by the Check Clearing for the 21st Century Act, they are facing another challenge: many of the check’s paper-based security features are lost, which makes counterfeit check fraud significantly more potent. However, imaging offers many opportunities for improvements in check fraud detection and provides new powerful and efficient fraud detection tools as well. In particular, image-based check stock verification software combats counterfeit checks by examining the check’s format and features. Automatic Check Stock Verification | How it Works Modern products for automatic check stock verification are using secure filters for detecting the most sophisticated counterfeit checks and image replacement documents (IRDs). State of the art systems developed using image analysis and pattern recognition technology, are a secure and powerful filter for detecting even the best counterfeit checks. They provide scrupulous verification of all major preprinted elements on business and personal bank checks and IRDs offering the industry’s highest accuracy and reliability. The software goes far beyond merely examining each individual preprinted object on a check and comparing them against corresponding objects on a reference check stock. It scrupulously verifies the full image of a check as well as preprinted objects on a check including headers, such as: check number, date, payee, dollar amount, dollar sign, memo, payor block and payor bank field. A combination of multiple forgery detection algorithms analyzes the elements’ content, font type, font size, font spacing, the placement of each item and relative distances between pairs of blocks, allowing banks to immediately identify even the slightest variations on a given check. Multiple methods of verification—including quantitative analysis, pattern recognition, analytical and geometrical analysis and neural networks—ensure accuracy. Advanced technology and methods allow check stock verification systems to work with equal efficiency on images scanned on different transports and reliably compare images even if the input image presented for verification and the reference image have different resolutions. It also provides unfailing verification dealing with real-life documents having noise, stamps, marks, inscriptions, and other distortions. Due to the advanced optimization algorithms even a minimally clean portion of an image is sufficient to ensure a reliable comparison. The position of preprinted elements of checks is verified against reference checks. 6273 Monarch Park Place, Longmont, CO 80503 USA | T: 303.381.3100 toll free: 888.225.0169 parascript.com 6 | F: 303.381.3101 [email protected]