Alogent and Mitek Announce Partnership to Tackle Ballooning Check Fraud Epidemic

Rhea-AI Summary

Mitek Systems, Inc. (NASDAQ: MITK) and Alogent have expanded their partnership to combat the rising check fraud epidemic. Alogent will integrate Mitek's Check Fraud Defender (CFD) into its Unify platform, offering enhanced fraud detection for banks and credit unions. This collaboration addresses the urgent need for robust, real-time verification technologies as check fraud losses exceeded $20 billion in 2023.

Mitek's CFD utilizes patented imaging science, machine learning, and AI to analyze checks from all channels in real-time. One customer reported a $16 million reduction in losses after implementing CFD. The partnership aims to provide advanced AI-driven tools for risk mitigation across all deposit channels while maintaining a seamless user experience for account holders.

Positive

• Partnership expansion with Alogent to integrate Check Fraud Defender into Unify platform
• Reported $16 million reduction in losses for a customer using Check Fraud Defender
• Potential for increased adoption of Mitek's fraud detection technology by financial institutions

Negative

• None.

Financial Analyst

The partnership between Alogent and Mitek to combat check fraud is a significant development in the financial sector. With check fraud losses exceeding $20 billion in 2023 and expected to rise, this collaboration addresses a critical need in the industry. The integration of Mitek's Check Fraud Defender into Alogent's Unify platform could potentially save banks millions, as evidenced by one customer's $16 million reduction in losses. This partnership could positively impact Mitek's revenue and market share in the fraud prevention space, potentially boosting investor confidence. However, the effectiveness of this solution in curbing the escalating fraud rates remains to be seen and investors should monitor its adoption and success rates closely.

Tech Expert

The integration of Mitek's Check Fraud Defender into Alogent's Unify platform represents a significant technological advancement in fraud detection. By leveraging a combination of patented imaging science, machine learning and AI, this solution offers real-time analysis across all check deposit channels. This multi-faceted approach is important in combating increasingly sophisticated fraud methods, including AI-generated counterfeit checks. The partnership demonstrates the growing importance of AI and ML in financial security, potentially spurring further innovation and investment in this sector. However, as fraudsters continue to evolve their tactics, the long-term effectiveness of such solutions will depend on their ability to adapt and improve continuously.

Market Research Analyst

This partnership highlights a growing market opportunity in the financial fraud prevention sector. With check fraud accounting for 31% of all bank fraud, there's a clear demand for advanced solutions. Mitek's expansion of partnerships suggests a strategic move to capture market share in this lucrative segment. The collaboration with Alogent could enhance Mitek's reach, particularly among smaller banks and credit unions. However, investors should consider the competitive landscape and potential for market saturation as more players enter this space. The success of this partnership could serve as a benchmark for future collaborations and potentially influence Mitek's long-term growth trajectory in the fraud prevention market.

Mitek’s Check Fraud Defender selected by Alogent to bring better check fraud detection to banks and credit unions

SAN DIEGO--(BUSINESS WIRE)-- Mitek Systems, Inc. (NASDAQ: MITK), a global leader in digital identity and fraud prevention, announces the expansion of their partnership with Alogent. Alogent will integrate Mitek’s Check Fraud Defender (CFD) into its web-based enterprise deposits automation solution, Unify.

According to the annual Federal Reserve Financial Services Survey, in the United States, forms of check fraud including forgery and counterfeiting account for 31% of all bank fraud. In fact, in 2023 check fraud losses surpassed $20 billion, and are expected to be even higher in 2024. With the evolution of technology, fraudsters have been able to leverage increasingly sophisticated methods like AI to create counterfeit checks, alter legitimate checks, and forge signatures. This rapid escalation in check fraud underscores the urgent need for more robust, real-time verification technologies, and Mitek's Check Fraud Defender represents a significant advancement in check fraud detection.

Using a unique combination of patented imaging science, machine learning, and artificial intelligence to analyze checks from all channels in real-time, one customer reported a reduction in losses of $16M after using CFD for a few months. “As transaction fraud tactics become more sophisticated, effective mitigation is essential to safeguard our clients' operations," said Ashish Bhatia, VP Product Management, Alogent. "By integrating Mitek’s Check Fraud Defender with our Unify platform, we provide our bank and credit union partners with advanced AI-driven tools for risk mitigation across all deposit channels, while maintaining a seamless user experience for account holders. This partnership highlights Alogent’s commitment to innovation and our dedication to upholding the highest standards of security and trust in the banking industry.”

The Alogent and Mitek partnership is one of many anticipated by Mitek as more financial institutions seek assistance in mitigating the scourge of check fraud and ballooning financial losses. “We are thrilled to extend our partnership with Alogent to include detecting check fraud, which has reached unprecedented levels,” commented Kerry Cantley, Vice President Digital Banking at Mitek. “With this partnership, Alogent’s customers will now be able to leverage Mitek's powerful fraud consortium, to quickly detect and prevent fraudulent activities across any channel online, in branch, or ATM.”

About Mitek Systems, Inc.

Mitek (NASDAQ: MITK) is a global leader in digital access, founded to bridge the physical and digital worlds. Mitek’s advanced identity verification technologies and global platform make digital access faster and more secure than ever, providing companies new levels of control, deployment ease and operation, while protecting the entire customer journey. Trusted by 99% of U.S. banks for mobile check deposits and 7,900 of the world’s largest organizations, Mitek helps companies reduce risk and meet regulatory requirements. Learn more at www.miteksystems.com.

Follow Mitek on LinkedIn and YouTube, and read Mitek’s latest blog posts here.

About Alogent

Alogent provides proven, end-to-end check payment processing, digital, online, and mobile banking, and enterprise content and information management platforms to financial institutions of all sizes, including credit unions, community banks, and some of the largest national and international institutions. Our unique approach spans the entire transaction ecosystem — capturing and digitizing transaction data, exception tracking, and automating entire transaction and loan management workflows so that information is available across the enterprise. Alogent’s solution suites leverage the latest in machine learning and predictive analytics, including enterprise-wide data intelligence and reporting solutions that enable financial institutions to deliver products and services that boost engagement through personalization and data-backed decisions. Learn more about Alogent at www.alogent.com.

Follow Alogent on LinkedIn, and read Alogent’s latest blog posts here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240821938341/en/

Media inquiries: pr@miteksystems.com or pr@alogent.com

Source: Mitek Systems, Inc.

FAQ

What is the partnership between Mitek Systems (MITK) and Alogent for?

Mitek Systems (MITK) and Alogent have partnered to integrate Mitek's Check Fraud Defender into Alogent's Unify platform, aiming to enhance check fraud detection for banks and credit unions.

How much did check fraud losses amount to in 2023 according to the Mitek Systems (MITK) press release?

According to the press release, check fraud losses surpassed $20 billion in 2023.

What technology does Mitek Systems' (MITK) Check Fraud Defender use?

Mitek Systems' (MITK) Check Fraud Defender uses a combination of patented imaging science, machine learning, and artificial intelligence to analyze checks from all channels in real-time.

How effective is Mitek Systems' (MITK) Check Fraud Defender in reducing losses?

According to the press release, one customer reported a reduction in losses of $16 million after using Check Fraud Defender for a few months.